HFCL - Avoid Completely-MultipleRedflag

HFCL 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.
Chart PatternschartpatterntradingFundamental Analysisfundamentalanalsysisfundamental-analysisfundamentalstrategy

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