# Nuvama Buys HFCL With 56% Upside Target

> Nuvama rates HFCL a 'Buy' with Rs 380 target, implying 56% upside from current price.
- Title: Nuvama Buys HFCL With 56% Upside Target · The Economic Times
- Summary: 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…
- Keywords: nuvama, hfcl, buy rating, target price, rs 380, rs 244, 56% upside, optical fibre, data centre, ai demand, revenue growth, ebitda
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/stocks/news/hfcls-ai-data-centre-exposure-drives-nuvamas-buy-call-target-implies-56-upside/articleshow/134985229.cms
- Author: Sakshi Kumari
- Published: 2026-10-16T06:53:00+00:00
- Read time: 1 min
- Topics: nuvama, hfcl, buy rating, target price, rs 380, rs 244, 56% upside, optical fibre, data centre, ai demand, revenue growth, ebitda
## 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.
## Key takeaway

Nuvama initiates coverage on HFCL with a 'Buy' rating and Rs 380 target price, suggesting 56% upside from its reference price of Rs 244.