HFCL shares drop 2% after skyrocketing 92% in one month. Time to buy or better to wait?

Synopsis

HFCL shares saw a 2% dip after a significant 92% surge in a month which prompted profit booking. Despite this, the stock has rallied nearly 147% year-to-date. Analysts at Geojit maintain a 'Buy' rating with a target of Rs 150, citing a strong order book, defense sector expansion, and favorable long-term fiber demand outlook.

Shares of HFCL dropped 2% on Friday to snap a five session gaining streak as investors may have resorted to profit booking after the stock skyrocketed 92% in just one month.

The share price of the manufacturer of optical fibre cables, telecom equipment and other tech products saw a massive rally this year so far. After hitting a fresh 52-week low of Rs 59.82 apiece on NSE at the end of January this year, the stock skyrocketed nearly 147% in around 16 weeks to hit a fresh 52-week high of Rs 107.10 apiece on Thursday.

HFCL shares have gained around 110% so far in 2026. A 32% rally over the past five sessions significantly contributed to the overall sharp surge, making strong gains for its shareholders. The shares of the company declined over 2% today to trade at Rs 142.80 apiece.

Should you buy, sell or hold HFCL shares?

Geojit Investments in a recent report maintained a 'Buy' call for HFCL shares in the range of Rs 105-115 apiece, with a target price of Rs 150 per share, implying an upside potential of nearly 3% from the stock’s previous closing price of Rs 146.24 apiece. On the downside, Geojit recommended a stop loss at Rs 86 per share.

The domestic brokerage in its report released on April 28 highlighted that the company closed Q3 FY26 with a strong order book of Rs 11,125 crore. It then secured two large orders aggregating Rs 11,525 crore during March-April 2026, materially enhancing revenue visibility while underscoring its technological capabilities and execution credibility.

“Growth visibility is further strengthened by a rising share of product-led and private orders, strong hyperscale data-centre demand for ultra-high-fiber-count OFCs, planned capacity expansion from 30.5 mn fkm to ~42.4 mn fkm by FY27, and backward integration into preform manufacturing (a key raw material for fiber production),” the domestic brokerage said.

It added that HFCL’s foray into defence vertical offers medium-term revenue visibility, with electronic fuses nearing commercialization and a diversified portfolio targeting Rs 400–500 crore revenue in FY27, scaling to more than Rs 1,000 crore by FY28. This is further strengthened by the recent Rs 25 crore Spiral EHL acquisition, consolidating aerostructures, radar, and thermal weapon systems under its subsidiary HASPL, it further said.

“The long-term outlook for HFCL remains favorable, supported by a structural upcycle in fiber demand (AI data centres, 5G densification), rising export contribution, margin expansion toward ~18–20% EBITDA, and balance-sheet strengthening post QIP and promoter infusion,” Geojit Investments further said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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