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HFCL Shares Fall Despite Market Rally as Expansion Plans Advance
HFCL makes equipment used for telecom networks.
Its share price fell on Tuesday even though the wider Indian stock market rose.
The share reached ₹225 during the day.
The article says some investors sold shares to lock in recent profits.
HFCL has lost 9.44% in one week, but it has gained strongly over longer periods.
The company approved another ₹820 crore for expanding its factories.
These factories will make more optical fibre, optical-fibre cable and preforms.
HFCL says it has an order book worth about ₹19,000 crore.
The new projects are expected to be completed in 2028.
HFCL shares fell about 3.7% to an intraday low of ₹225 on Tuesday, despite broad market gains.
The stock opened at ₹230.50, compared with its previous close of ₹233.69, while about 12.77 lakh shares changed hands.
The decline followed recent gains and was attributed to investors booking profits; HFCL has fallen 9.44% in one week.
HFCL’s board approved an additional ₹820 crore investment, taking planned capacity-expansion capital expenditure to about ₹1,800 crore.
The expansion is backed by an optical-fibre and connectivity-solutions order book of about ₹19,000 crore, with projects expected to be completed by 2028.
- Who
- HFCL and its investors; HFCL Managing Director Mahendra Nahata also commented on the expansion.
- What
- HFCL shares declined during Tuesday’s trading session while the company announced an additional ₹820 crore capacity-expansion investment.
- Where
- The share-price movement occurred on the National Stock Exchange of India, while the manufacturing expansion will take place through HFCL’s facilities and subsidiary.
- When
- Tuesday, 15 September; the expansion approval was announced in an exchange filing on Monday, 14 September.
- Why
- The decline was attributed to profit booking after recent gains, while the investment is intended to increase manufacturing capacity and meet expected demand for optical communications infrastructure.
Key facts
- Intraday low
- ₹225 on 15 September
- One-week performance
- Down 9.44%
- Additional capital expenditure
- ₹820 crore
- Total planned expansion expenditure
- About ₹1,800 crore
- Order book
- About ₹19,000 crore for optical-fibre cable and connectivity solutions
- Expected completion
- Optical-fibre and cable projects by July 2028; preform facility by October 2028
- Planned capacity after expansion
- 43.10 million fibre kilometres of optical fibre, 62 million fibre kilometres of optical-fibre cable and 600 metric tonnes of preforms
Quotes
Mahendra Nahata
Managing Director of HFCL
“By expanding our Optical Fiber and Optical Fiber Cable capacities and establishing a significantly larger Preform manufacturing facility, we intend to strengthen our ability to meet growing customer requirements, improve supply chain resilience and enhance operational efficiencies. This investment reflects our confidence in the long-term growth potential of the optical communications industry and reinforces our commitment to building globally competitive manufacturing capabilities.”
livemint.com
Sources
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