The shares of one of the leading telecom infrastructure manufacturers specializing in creating digital networks and various critical equipment for telcos, defence, enterprises, and governments jumped 4 percent in the day’s trade upon receiving BharatNet project worth ~Rs. 2,501 Crores.
Price Action (WA:ACT)
With a market capitalization of Rs. 15,213 Crores, the shares of HFCL Limited (NS:HFCL) were trading at Rs. 105.45 per equity share, up 2.98 percent from its previous day’s close price of Rs. 102.40.
Take advantage of AI-Powered ProPicks, Advanced Stock Screener, Fair Value, Financial Health, etc., with InvestingPro and take advantage of our New Year's Sale offer to stay ahead.
What Happened
HFCL Limited engaged in offering end-to-end solutions for establishing the network required for telecommunications, Defense communication, and many more, has received a work order worth Rs. 2,501.30 Crores from Bharat Sanchar Nigam Limited for Phase 3 of the BharatNet Project in Punjab Telecom (BCBA:TECO2m) Circle.
The work involves the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network on the design build operate, and maintain (DBOM) model, involving operating expenses of ~Rs. 746.76 Crores for the newly constructed network, ~Rs. 509.94 Crores for the existing network and capex of Rs. 1,244.61 Crores.
The project involves three years of Construction and ten years of Maintenance.
About the Company
HFCL Limited is one of the leading telecom infrastructure technology companies, it is engaged in offering end-to-end solutions for establishing the network required for telecommunications, Defense communication, and railway communication in India.
HFCL Limited is the leading supplier of Optical fiber cables in India, with 5 manufacturing facilities, 3 R&D Centers, and a presence across 45+ countries. It generates 97 percent of its revenue from Telecom and Cable, 1 percent from Defence, and 2 percent from railways.
HFCL has developed capabilities to provide premium-quality Optical Fiber and Optical Fiber Cables, state-of-the-art telecom products including 5G Radio Access Network (RAN) products, 5G Transport Products, Wi-Fi Systems (Wi-Fi 6, Wi-Fi 7), Unlicensed Band Radios, Switches, Routers and Defence electronics products.
Its revenue from operations declined by 1.61 percent from Rs. 1,111 Crores in Q2FY24 to Rs. 1,094 Crores in Q2FY25, accompanied by profits of Rs. 70 Crores to Rs. 73 Crores.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Telecom stock jumps 4% after receiving project worth ₹2,501 Cr from BSNL for BharatNet project appeared first on Trade Brains.
To understand more about InvestingPro, watch this video: https://www.youtube.com/watch?v=_WfQcN5vjI