From The Economic Times · Sakshi Kumari · · 1m 30s
Nuvama Buys HFCL With 56% Upside Target
Nuvama rates HFCL a 'Buy' with Rs 380 target, implying 56% upside from current price.
In brief
Nuvama rates HFCL a 'Buy' with Rs 380 target, implying 56% upside from current price. Nuvama initiates coverage on HFCL with a 'Buy' rating and Rs 380 target price, suggesting 56% upside from its reference price of Rs 244. Originally reported by The Economic Times.
Nuvama initiates coverage
Nuvama has initiated coverage on HFCL with a 'Buy' rating and a target price of Rs 380, against its reference price of Rs 244.
HFCL shifts to products
HFCL has moved away from turnkey contracts toward optical fibre, telecom products and data centre connectivity.
Product revenue up
Products accounted for 83% of revenue in Q1FY27, compared with 27% in FY21.
AI drives fibre demand
AI infrastructure expansion increases fibre use for GPUs and racks across data centres.
Fibre supply tight
Optical fibre demand outpaces supply, with new preform facilities taking 24-36 months to become operational.
Fibre prices rise
Global CRU optical fibre price index rose from 79 in March 2:025 to 263 in March 2026.
Order book shifts
Product orders now account for 65% of order book, compared with 22% in FY25.
Export orders grow
Export orders stood at Rs 12,250 crore at end of FY26, with total order book Rs 21,200 crore.
Defence growth
Defence revenue expected to rise from Rs 310 crore in FY26 to Rs 1,720 crore by FY29.
Earnings forecast
Nuvama expects EBITDA to rise from Rs 762 crore to Rs 3,599 crore by FY29.
The key point
Nuvama initiates coverage on HFCL with a 'Buy' rating and Rs 380 target price, suggesting 56% upside from its reference price of Rs 244.
