Multibagger Alert: Rs 13 to Rs 86; this midcap Telcom stock gave a return of 555% in five years
Last Updated: 6th January 2022 - 03:49 pm
HFCL was a buzzing stock yesterday, gaining 13% from the open price of Rs 79 to Rs 89.5 as day’s high and closed at Rs 85.55.
With strong fundamentals, the stock of multibagger HFCL rallied from Rs 13 in January 2017 to Rs 86 today, surging 6.55x times in five years. An amount of Rs 1 lakh invested in January 2017 would have become Rs 6.55 lakh in January 2022.
In 2021 alone, the stock has tripled from Rs 27 to Rs 86 today, registering a return of 225% in 12 months. Rs 1 lakh invested in January 2021 would have become Rs 3.25 lakh today.
Yesterday, HFCL gained 13% from the open price of Rs 79 to Rs 89.5 as day’s high and closed at Rs 85.55. The momentum is continuing today, it rallied 1.3% for the day, the stock closed at Rs.86.65.
HFCL Ltd (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, Optical Fiber and Optic Fiber Cable (OFC).
Recent news which catalyzed the stock price
1. Yesterday, the company has announced powering its network offerings with Artificial Intelligence (AI) based analytics, partnering with Aprecomm, the leading AI-powered Wi-Fi analytics technology provider. The newly added feature will help HFCL enable all their customers - Carrier, Enterprise, and Service Provider - to offer enhanced connectivity experience to millions of end-users.
2. On December 10, Reliance Industries Ltd. (RIL), through its subsidiary, Reliance Ventures Ltd. has raised its stake in HFCL, to 5% in the latter's qualified institutional placement (QIP). The contribution of RJIL towards the total revenues of the company is around 30% for FY20.
Do you think HFCL can sustain the rally with their strong earnings growth in future?
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