HFCL shares hit 52-week high after ₹230 crore defence facility approval in Andhra Pradesh; stock cools off later

HFCL shares hit a 52-week high of ₹155.30 on Thursday, May 14, as the company’s board of directors approved the establishment of a defence manufacturing facility worth ₹230 crore in Andhra Pradesh.

The company said it will manufacture Multi-Mode Hand Grenades (MMHG) and similar products at its facility located in Andhra Pradesh’s Sri Satya District.

“The establishment of the Defence Facility will enable HFCL to design, develop and manufacture advanced defence systems, significantly strengthening its defence product portfolio and long-term growth prospects in this strategic sector,” the company said in a regulatory filing.

The domestic and global defence sectors are witnessing unprecedented growth, driven by heightened geopolitical uncertainties, enhanced focus on national security, and increasing investments by governments worldwide in advanced defence technologies.

HFCL said that India is witnessing a strong policy push driven by import substitution, indigenisation, and long-term defence procurement programmes, which is creating significant opportunities for domestic manufacturers with strong engineering and manufacturing capabilities.

HFCL share price

Shares of HFCL rose a little over 1% to touch a one-year high of ₹155.3 per share. However, it later slipped 9% from its day’s high to an intraday low of ₹142 per share. At 1:40 PM, HFCL shares were trading at ₹147.50 apiece on the National Stock Exchange, falling 3.69%.

Over the past five trading sessions, shares of the company have gained 3%, while they have rallied 68% in a month. In the last six months, the stock has jumped 96% and over a whopping 115% from the beginning of the year.

HFCL has a total market capitalisation of ₹22,720.26 crore, according to NSE data.

About HFCL

Founded in 1987, HFCL (Himachal Futuristic Communication Limited) is an India-based technology company focused on building next-generation communication and networking solutions. It specialises in the manufacturing of telecom products and optical fibre cable. HFCL also offers basic telephony and ISP services.

HFCL operates across telecom equipment, optical fibre cable, defence electronics, and turnkey EPC services. The company is known for its strong R&D capabilities and played a role in India's 5G rollout and broadband expansion.

HFCL has five manufacturing facilities in India, two each in Telangana and Tamil Nadu, and one in Goa. It caters to customers in more than 30 countries.

History of HFCL Limited

HFCL Limited was established in 1987 and began its journey as a manufacturer of telecom equipment during India’s early telecom expansion phase.

It became one of the pioneers in the new-age telecom sector in India, establishing one of India’s first private telecom companies.

In 1995, the company’s ₹85,000 crore bid for the basic service telecom licence in India. It played a crucial role in driving the growth of the country’s telecom industry.