HFCL shares rise over 9%, hit 52-week high in early trade

Shares of HFCL hit a fresh 52 week high on Tuesday amid a rally in the broader market. The stock gained 9.21% to Rs 128.80 against the previous close of Rs 117.80  on BSE.  HFCL stock opened higher at Rs 123.15 on BSE.

Sentiment was positive around the stock after the firm said it has been exempted by the European Commission from the provisional anti-dumping duties imposed on all other Indian optical fiber cable (OFC) manufacturers.

HFCL shares have gained 86.60 per cent in one year and gained 51% per cent since the beginning of this year. Market cap of HFCL rose to Rs 18,437 crore on BSE. Total 15.41 lakh shares of the firm changed hands amounting to a turnover of Rs 19.41 crore.

The stock has a beta of 1.9, indicating very high volatility in a year. The stock hit a 52-week low of Rs 61.52 on October 26, 2023 and a 52 week high of Rs 120.20 on June 14, 2024 . In terms of technicals, the relative strength index (RSI) of  HFCL stock stands at 67.1, signaling it's trading neither in the oversold nor in the overbought zone. HFCL shares stand higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

"...it was determined that HFCL is the only Indian company not engaged in dumping of OFC in European markets whereas provisional Anti-dumping duty has been determined on all other Indian Optical Fiber Cable Manufacturers in the statement issued by the European Commission," the firm said in a communication to bourses.

Europacable on behalf of the European industry of optical fibre cables lodged a complaint on October 3, 2023 by alleging that imports of optical fibre cable (OFC), originating from India, were being dumped and were causing injury to the European industry, HFCL  said.

Subsequently, the European Commission conducted a probe of all relevant Indian OFC manufacturers’ products, infrastructure and financial data.

“After thorough investigation, the European Commission ruled in June 2024 that anti-dumping duties would not apply to the Indian exporting product of the HFCL Group, which includes HFCL Limited and HTL Limited, as no evidence of dumping was found," the company release said.

"Anti-dumping duty was, however, levied on all other Indian manufacturers of Optical Fiber Cables against which these manufacturers have legal recourse. This decision of the European Commission has proven the transparent and fair business practices of HFCL," HFCL said.

HFCL Limited is primarily engaged in 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 provides solutions for building wireless and optical telecommunication networks, such as optical transport networks (DWDM), rural global system for mobile communications (GSM) networks, broadband access networks, radio backhaul, fiber to the home and in-building solutions.