HFCL shares up 4% today, takes winning run to 3rd day on strategic expansion in Europe

Shares of HFCL Ltd climbed 4 per cent in Wednesday's trade to take it winning run to the third straight session. The stock gained as the company announced a strategic expansion into Europe with the setting up of a OFC manufacturing plant in Poland.

With this, the company is looking to address the increasing demand for OFC in European markets such as UK, Germany, Belgium, France and Poland.

The stock rose 4.46 per cent to hit a high of Rs 115.70 on BSE. A total of Rs 891 crore worth HFCL shares changed hands on NSE so far. The HFCL stock is up 15 per cent in the three sessions.

"With an ambitious vision to capitalise on burgeoning market opportunities and fortify its position as a key player in the OFC domain, HFCL aims to ramp up share of exports in its OFC vertical revenue from the current 30 per cent to 70 per cent within the next 4-5 years. Europe, with its promising growth prospects, particularly stands out as a focal point for HFCL's strategic initiatives," the compamy said in a BSE filing

Europe’s OFC market is projected to experience a compound annual growth rate (CAGR)
of around 4.5 per cent over the next five years with expected demand of 90 million km per anual by 2028.

"The FTTH council estimates around 308 million homes in the EU region to have FTTH connectivity by 2028, speeding up deployment by 3-5 years. This signals a rapid expansion of FTTH networks in these areas which will lead to increased demand of OFC.

Factors such as bandwidth limitations of traditional cable and copper networks, regulatory imperatives driving fiber deployment and escalating traffic demands further underscore the critical need for full fiber solutions," HFCL said,

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