Domestic brokerage firm, Nuvama Institutional Equities has initiated coverage on HFCL with a 'buy' rating, citing the company's shift towards telecom and networking products, its order book, capital expenditure programme and growth opportunities in data centres and defence, Business Today.
Mint couldn't independently verify the report. According to Nuvama Institutional Equities, HFCL has pivoted decisively from turnkey contracts to telecom and networking products (83% of Q1 FY27 revenue versus 27% in FY21). It is well poised to ride on data center buildouts globally, backed by record order book, capex program and robust execution capability (reflected in order wins).

Moreover, HFCL's defence scale-up creates a valuable diversification along with a significant optionality. The domestic brokerage expects HFCL to post a compound annual growth rate (CAGR) of 39% in revenue, 68% in EBITDA and 92% in profit after tax (PAT) over FY26–FY29.
Nuvama has set the 12-month target price at ₹380, based on 18 times estimated enterprise value to EBITDA for Q3FY29, in line with global peers. Nuvama flagged a slowdown in global data centre capex and delays in the completion of HFCL's preform capacity as key risks.

It added that the stock trades at 13.1 times its estimated FY28 enterprise value (EV) to EBITDA. On its turnkey business, Nuvama noted that BharatNet has been a key contributor. HFCL has undertaken large-scale fibre network deployment contracts under the programme, covering engineering and implementation in addition to optical fibre cable (OFC) supply.
The company has also secured turnkey projects from private telecom operators, including Reliance Jio, alongside government and institutional projects. HFCL, a company with diverse operations in telecom infrastructure, has witnessed a remarkable 277% surge in its stock price.

The rally has also propelled the stock to its highest level since 2008. Mahendra Nahata's family holds 0.54% stake in Jio PlatformsHFCL promoter and managing director Mahendra Nahata and his family could see a substantial increase in the estimated value of their investment in Jio Platforms following the latter’s proposed initial public offering (IPO), as per the report.
According to Jio Platforms’ draft papers, the Nahata family and associated entities acquired 37.04 million shares in the company through the conversion of compulsorily convertible debentures in July 2020, at a face value of ₹10 per share. They subsequently acquired another 10.83 million shares, taking their total holding to 47.87 million shares, equivalent to a 0.54% stake, the report showed.

At the upper end of the price band of ₹1,119 per share, Jio Platforms’ IPO is expected to raise approximately ₹30,213 crore, making it the largest IPO in India’s stock market history. The country’s largest IPO to date was that of Hyundai Motor India, which raised approximately ₹27,870 crore in 2024.
Meanwhile, Meta Platforms and Google could be sitting on nearly ₹1 lakh crore in combined paper gains from their investments in Jio Platforms made in 2020. Meta Platforms owns a 10% stake through Jaadhu Holdings LLC, while Google International LLC holds a 7.73% stake.

However, neither existing shareholder is selling shares through the IPO. Disclaimer: We advise investors to check with certified experts before making any investment decisions.