Khandwala Securities
Target: ₹86
CMP: ₹46.85
Two recent developments have heated the growth environment: The recent 4G Auction concluded on March 2, 2021 where, we have seen some keen investment from Reliance & Airtel for becoming 5G ready and investing into their existing 4G capacities to add more subscribers for future growth; and India’s focus on reducing imports and Atmanirbhar Bharat has further incentivised domestic producers like HFCL.
With the recently announced PLI scheme from the government which allocated ₹12,000 crore for telecom equipment manufacturers with FY20 as the base year for the production benchmark. This is going to benefit HFCL's decision in its product development initiative and investment into telecom and networking products.
We believe HFCL’s growth and profitability levels are likely to improve significantly compared to its recent historical performance.
Broker's call: HFCL (Buy) - BusinessLine
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