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HFCL Ltd

NSE: HFCL BSE: 500183

68.51

(-1.55%)

Fri, 06 Mar 2026, 07:38 am

HFCL Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (17.7x coverage).
  • HFCL's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividend payments have increased, but HFCL only paid a dividend in the past 2 years.
  • Whilst dividend payments have been stable, HFCL has been paying a dividend for less than 10 years.
  • HFCL's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • HFCL is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HFCL is profitable, therefore cash runway is not a concern.
  • HFCL is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (21%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 4.6x debt.
  • HFCL's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (33.3% vs 40.1% today).
  • HFCL's level of debt (40.1%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • More shares have been bought than sold by HFCL individual insiders in the past 3 months.
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Cons

  • The average tenure for the HFCL board of directors is less than 3 years, this suggests a new board.
  • Mahendra's remuneration is higher than average for companies of similar size in India.
  • Mahendra's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

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Pros

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    Cons

    • HFCL is not covered by any analysts.
    • HFCL has significant price volatility in the past 3 months.

    past

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    Pros

    • HFCL's 1-year earnings growth exceeds its 5-year average (3% vs 0.1%)
    • HFCL's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
    • HFCL used its assets more efficiently than the Asia Telecom industry average last year based on Return on Assets.
    • HFCL has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • HFCL has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • HFCL's earnings growth has not exceeded the Asia Telecom industry average in the past year (3% vs 3%).

    value

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    Pros

    • HFCL is good value based on assets compared to the Asia Telecom industry average.
    • HFCL is good value based on earnings compared to the Asia Telecom industry average.
    • HFCL is good value based on earnings compared to the India market.
    • NSEI:HFCL is up 18.8% outperforming the Telecom industry which returned -0% over the past month.
    • NSEI:HFCL is up 18.8% outperforming the market in India which returned 8% over the past month.
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    Cons

    • HFCL's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • HFCL's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • HFCL underperformed the Telecom industry which returned -14.4% over the past year.
    • HFCL underperformed the Market in India which returned -14.5% over the past year.

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