HFCL - Avoid Completely-MultipleRedflagHFCL 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).
Product Portfolio
Optical Fiber Cable (OFC),
Optical Fiber,
Wi-fi systems,
Microwave radios,
Routers,
Ethernet switches,
Electronic fuses,
Electro optic devices
Revenue Break - Below break up has 2 to 3% export revenues
78% of revenues and sale of Telecom products
22% of revenues from others.
General Notes
1. Promoters shares are pledged to the extent of 44% - Redflag
2. Associated with reliance jioinfocom
3. Sales, Profits and EPS are not ok with me. Its been constanly reducing on QoQ basis which is not good
4.Cash flow is negative - Red flag
5.Interestingly cash conversion cycle is 77 days (Increased) but payables day has been decreased to 177 days ( Previously it was 262 days)
6.Public holding more than 50% - Redflag
7.Over the years it has been playing with multiple news in the markets but it has not performed a bit. Every time investors have burned hands on this
8.Techincal setup has been broken upwards. For trading this can be taken up with stoploss of Rs. 60.
HFCL trade ideas
HFCL LTD - HFCL(NSE) | BULLISH RECTANGLEHFCL LTD - HFCL(NSE) | ASCENDING RECTANGLE has been forming an Bullish Rectangle since August 2021. A long candle cutting the top green line or a bounce-back from the bottom red line can be considered as a good buying opportunity. Those who have existing holdings can utilize the red line as an apt price range for averaging, after a bounce-back is confirmed.
HFCL LTD 1D Time Frame Here's the chart analysis of HFCL .
HFCL in an uptrend and it formed a Triangle Pattern breakout with a Good Volume support . In terms of the the pattern touches the Resistance zone and now gives a Breakout . after a breakout wait for a next move and price moves towards a upside .
Accumulation Mode In HFCL ? ? ? HFCL - Two Things are possible in HFCL
One - To Cut the All Time High price at the chart it will take one more support and than hit the resistant only to break it.
Two - Mukesh Ambani is a pure business man , he would have purchased it only due to less valuations , may be near red area or below that , because the last candle which is visible in chart has engulfed the previous one. News would be out regarding this purchase and people sold it before its too late.
In either case , accumulation mode would be a great step for this stock.