HFCL shares surge 4% after bagging Rs 2,501 cr contract from BSNL

HFCL share price gained 4.29 per cent at Rs 106.80 a piece on the BSE in Friday’s intraday trade. This came after the company bagged an advance work order worth Rs 2,501 crore.

“We are pleased to inform to all our stakeholders that the Company has successfully secured an Advance Work Order (“AWO”) aggregating to ~INR 2,501.30 Crores for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet Phase III in the Punjab Telecom Circle, from Bharat Sanchar Nigam Limited (“BSNL”),” the company said in an exchange filing on Thursday.

The order win includes design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet Phase III in the Punjab Telecom Circle on Design Build Operate and Maintain (DBOM) Model, the company said.

The project will take three years for construction and involves 10 years of maintenance contract (Opex) at 5.5 per cent per annum of capex for the first 5 years and 6.5 per cent per annum of capex for next 5 years.

Himachal Futuristic Communications Limited (HFCL) is a technology company specialising in designing, manufacturing, and delivering telecom infrastructure solutions. The company produces and supplies optical fiber and optical fiber cables (OFC), as well as a range of telecom equipment, including indoor and outdoor Wi-Fi access points, switches, routers, and radio relays.

Additionally, HFCL offers turnkey solutions for telecom service providers, railways, defense, smart cities, and surveillance projects, providing comprehensive support across various sectors.

On the equities front, HFCL share price has underperformed the market, falling 13 per cent in the last six months, while gaining 38 per cent in the last one year. In comparison, the BSE Sensex has slipped 5 per cent in the last six months, while jumping 7.2 per cent in the last one year.

HFCL has a total market capitalisation of Rs 15,032.65 crore. Its shares are listed at a price to earnings multiple of 38.65 and at an earning per share of 2.65.

At 10:41 AM, the stock price of the company rose by 1.76 per cent at Rs 104.20 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.49 per cent to 76,662.74 level.