5G technology is the next big upgrade for telecommunication networks and HFCL is gearing up to offer various products, solutions and services for this segment.

July 12, 2021

A sharp rally in the stock price has seen the market capitalization of HFCL vault past the INR 10000 crore mark. Currently, HFCL’s market capitalization stood at INR 10969 crore on the BSE, the exchange data shows.

As reported in a leading daily — shares of HFCL Ltd. (formerly known as Himachal Futuristic Communications Limited) continued their northward movement as they surged 18% to Rs 85.90 on the BSE in intra-day session on the back of heavy volumes.

Watch: Wire & Cable Indian Fortnightly News.

In the past month, the stock of HFCL has zoomed 86% as compared to a 1.4% rise in the S&P BSE Sensex. The scrip was trading at its highest level since February 2002.

HFCL is one of the largest telecom project service providers for Reliance Jio and is currently engaged in rolling out of 4G OFC Network services across Northern India. Apart from deploying networks in Punjab and Jharkhand, HFCL is also supplying fibre optic cables in Maharashtra, Telangana and Chhattisgarh under Bharat Net projects.

5G technology is the next big upgrade for telecommunication networks and HFCL is gearing up to offer various products, solutions and services for this segment. The capex required for 5G deployments on Pan India basis are likely to entail massive investments of around Rs 3,650 billion in the next 5-6 years, the company said in an investor presentation.

Also Read: Reliance Industries to Invest INR 75000 Crore in Clean Energy.

Open Radio Access Network (OpenRAN) architecture enable network operators to design and implement 4G and 5G networks by different equipment from different vendors leading to huge opportunities for the manufacturers. Under Bharat Net Phase II Project, Wi-Fi, infrastructure, electronics and optic networks bring out a Rs 40,000 crore opportunity. “The disruptions caused by COVID-19 pandemic have increased the demand for home and industrial IoT devices and applications. The Production Linked Incentive (PLI Scheme) by the Government to incentivize the indigenous telecom product manufacturers increases the profitability and competitiveness,” the company said.