- HFCL rose about 10% in early trade on Monday as turnover and volumes surged, MarketsMojo data showed.
- The stock remained near its 52-week low despite the rebound, underscoring recent selling pressure.
- MarketsMojo maintained a “Strong Sell” rating, citing weakening financial metrics and high promoter share pledging. Markets Mojo
HFCL Ltd shares jumped about 10% in early trade on Monday, with the Indian telecom-equipment company drawing heavy turnover after weeks of weakness. MarketsMojo said the stock hit an intraday high of 67.66 rupees.
The move matters because HFCL has been trading close to its 52-week low, making any sharp rebound stand out during thin year-end sessions. Indian benchmarks have been stuck in a narrow range as participation thins and foreign portfolio investors keep selling, Reuters reported.
MarketsMojo kept its “Strong Sell” stance on HFCL, saying the rally has not yet changed its read on the company’s fundamentals and technical picture. The rating was last updated on Nov. 17, MarketsMojo said, though its metrics reflect the stock’s position as of Monday. Markets Mojo
MarketsMojo said HFCL’s surge came with unusually active trading. By 9:44 a.m. IST, about 37.5 million shares had traded, representing roughly 236.06 crore rupees, or about 2.36 billion rupees, in value.
The stock opened at 62.00 rupees and swung between 61.34 rupees and 65.24 rupees early in the session, MarketsMojo said. The platform described the day’s action as volatile and said the move snapped a two-session decline.
Even after Monday’s pop, HFCL was still only about 4.24% above its 52-week low of 60.72 rupees, MarketsMojo said. That keeps the stock near the bottom of its annual range.
Part of the focus has been on “delivery” activity, MarketsMojo said. Delivery volume refers to shares taken for settlement — investors keeping the position — rather than closing it intraday. Markets Mojo
MarketsMojo said HFCL’s delivery volumes on Dec. 26 reached 4.12 crore shares, about 41.2 million shares, a sharp jump versus the five-day average. The platform said such spikes often signal investors building positions rather than short-term trading.
MarketsMojo’s model flagged longer-term weakness in the stock despite Monday’s rebound. The firm said HFCL remained below major longer-term moving averages, which track average prices over set periods and are often used as trend markers.
On performance, MarketsMojo said HFCL was down 40.10% year-to-date and also down 40.10% over the past year, lagging the Sensex, which has risen this year.
The “Strong Sell” view rests heavily on HFCL’s recent financial trend, MarketsMojo said. The platform cited an annualised 8.15% decline in operating profit over the past five years and said the company has posted negative results for four consecutive quarters. Markets Mojo
MarketsMojo also said profit after tax for the latest six months was 35.62 crore rupees, down 80.77%, while net sales for the first nine months were 2,715.08 crore rupees, down 24.12%. It said interest expenses for the nine-month period rose 25.11% to 167.58 crore rupees.
Another overhang is promoter pledging, MarketsMojo said. It put pledged promoter holdings at 56.93% — shares used as collateral — which can add pressure in falling markets if lenders demand more margin.
HFCL operates in the telecom equipment segment alongside listed peers such as ITI and Tejas Networks, according to MarketsMojo’s peer grouping.
With Indian equities still muted in year-end trade, investors will be watching whether HFCL’s burst of volume and buying interest persists into the close.
