HFCL share price extended its last week rally on Monday and registered around 20 per cent intraday gain at NSE. In the intraday trade session, HFCL shares opened 1.40 higher from its Friday close of 72.60 at NSE. The telecom stocks further extended its intraday gains and closed at 87.10 per stock levels at NSE. Due to this sharp rise in HFCL counter, the market capitalisation of the scrip has gone past 10,000 crore mark. Currently, market value of HFCL is 11,190 crore.

According to stock market experts, this rally in the telecom stock is due to the central government’s scheme to bring all Indian villages under the internet purview without using Chinese components. Since, HFCL is in internet component manufacturing, it is expected to emerge major beneficiary of this GoI scheme and that’s the reason for HFCL stock becoming bull’s favourite at Dalal Street.

Speaking on the reason for rise in HFCL stocks Avinash Gorakshkar, Head of Research at Profitmart Securities said, “The Indian government has announced to bring all Indian villages under the purview of internet without using the China-made internet components. That means, Indian companies like HFCL will be the major beneficiary of this GoI announcement and that is the reason for bulls heavily pumping money in the counter.” Gorakshkar said that one can buy this portfolio stock for one to two years as the stock is still poised for upside movement due to this GoI scheme.

On whether one should buy the counter now Ravi Singhal, Vice Chairman at GCL Securities said, “After the GoI announcement to stop import of Chinese internet component for its ambitious internet for all Indian villages drive, one can buy the counter for one to one and half year time-horizon keeping 144 target in mind.”

HFCL is in internet component manufacturing and one of the leading service providers for Reliance Jio. It is supplying fiber optic under Bharat Net projects in Maharashtra, Chhattisgarh and Telangana. HFCL is expected to get benefit of 5G roll-out as well.

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