HFCL shares jump 13% as company 'unveils new era in defence tech'; details here

Shares of HFCL Ltd gained rose sharply in Friday's trade amid heavy volumes. The stock rose 12.65 per cent to hit a day high of Rs 76.30 over its previous close of Rs 67.73. Despite the said rise, the scrip has slipped nearly 2 per cent on a year-to-date (YTD) basis.

On BSE, around 41.51 lakh shares were last seen changing hands today. The figure was way more than the two-week average volume of 6.63 lakh shares. Turnover on the counter came at Rs 30.43 crore, commanding a market capitalisation (m-cap) of Rs 10,634.36 crore. Today's sharp movement in the share price came after the company said it is "unveiling a new era in defence technology with cutting-edge radars."

The company, in an exchange filing, said, "We are pleased to inform all our stakeholders that HFCL, through its 90 per cent owned subsidiary - Raddef Pvt Ltd - a R&D enterprise, has designed a range of surveillance radars catered to meet diverse operational needs. These radars employ frequency modulated continuous wWave (FMCW) technology offering numerous advantages over other radar technologies, including high accuracy, low power consumption, and resistance to interference."

HFCL mentioned that the transformation involves a strategic focus on radar technologies to fulfil the critical Information, surveillance and reconnaissance (ISR) needs of defence and security forces.

"The deployment of these cutting-edge radar technologies offers unparalleled advantages and showcases versatile applications across multiple sectors, underscoring HFCL's unwavering dedication to innovation and excellence in the defence industry," it added.

Mahendra Nahata, Managing Director at HFCL said, "Our strategic investment of 90 per cent in Raddef underscore HFCL's commitment to fostering Make-in-India technology, solidifying our position as a trusted partner in the defence communication domain."

The company further underlined that worldwide market for surveillance radars is expected to reach to $12 billion per annum by 2030 from the current market size of $6.87 billion per annum.

"India accounts for 3.7 per cent of global military spending, making it the third highest military spender in the world after the US and China. This makes it to be a huge opportunity for HFCL to contribute and lead with innovation in Indian defence tech space," it also said.

On technical setup, the HFCL stock was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100, 150-, and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 68.42. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 39.18 as against a price-to-book (P/B) value of 2.83.

HFCL is an India-based company that is primarily engaged in the manufacturing of telecommunication equipment, optical fiber cables and intelligent power systems. The company is a manufacturer of optical fiber cables, optical transport, power electronics and broadband equipment for the telecommunication industry.

It is also engaged in the development of a state-of-the-art drone detection radar, poised to be an important component of modern drone detection systems.

 

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

 

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