HFCL Eyes Further 53% Upside on Historic Order Book and Stellar Earnings, Nuvama Sets Rs 410 Target Following a 290% surge this year, telecom gear maker HFCL receives an upgraded price target of Rs 410 from Nuvama, driven by a record Rs 28,900 crore order book and Q2 profit jump. Shares of domestic telecom equipment and optical fiber solutions manufacturer HFCL Limited continue to show massive market momentum following an extraordinary run of returns. The stock has already established itself as a standout multibagger by delivering a 290 percent return so far this year. Over shorter horizons as well, the upward trajectory has remained intact, with the counter gaining 25 percent across the past month and surging 174 percent over the preceding six-month period. Continuing this strong performance, the equity advanced another five percent on 20 October 2026 to finish trading at Rs 268.81. Analysts track this steady uptrend back to robust corporate health and a rapid ramp-up in global infrastructure deployments. Nuvama Institutional Equities Upgrades Target Price to Rs 410 Backing the stock to climb further, brokerage house Nuvama Institutional Equities maintained its positive stance and reiterated a Buy rating on the company. In its latest equity assessment, the brokerage revised its target price upward from Rs 380 to Rs 410 per share. Based on the closing rate of Rs 268.81, the new target represents an upside potential of approximately 53 percent from prevailing market levels. Nuvama attributed its bullish projection to stronger-than-expected financial performance in the second quarter, upwardly revised growth guidance by company leadership, and a swelling backlog of commercial contracts. Exceptional Surge in Q2 Revenue and Net Profit The operational numbers reported for the second quarter of the fiscal year 2027 significantly beat street expectations. During the quarter ending September, HFCL recorded a massive 144 percent year-on-year rise in consolidated revenue. The profitability metrics showed even steeper expansion, as profit after tax jumped 435 percent compared to the corresponding period of the previous financial year. On a sequential quarter-on-quarter basis, bottom-line earnings expanded by 59 percent. This simultaneous acceleration across top-line sales and operational margins highlights the company's operating leverage as production volumes scale across its manufacturing facilities. FY27 Revenue Guidance Doubled and FY29 Milestone in Sight Beyond current quarterly results, the updated forward visibility provided by the corporate executive team has created strong sentiment across trading desks. Management has doubled its annual revenue growth projection for FY27, shifting the target from the earlier 40 percent mark to over 80 percent. Furthermore, the company communicated that its medium-term aspirational milestone of reaching Rs 10,000 crore in annual turnover by FY29 is now tracking well ahead of the original timetable. This accelerated projection demonstrates the visibility provided by existing client engagements across international and domestic telecommunication sectors. All-Time High Order Book of Rs 28,900 Crore The operational runway for the company is secured by a record-high order book valued at Rs 28,900 crore. A defining attribute of this contract pipeline is its global composition, with international exports accounting for 57 percent of total outstanding orders. With global telecommunication operators accelerating their 5G network rollouts, demand for fiberisation, wireline connectivity gear, and advanced telecom hardware has seen sustained recovery across both domestic and overseas territories. This high share of international orders offers substantial margin insulation and currency diversification for the business. Operational Efficiencies and Working Capital Turnaround Alongside rapid commercial growth, the organization has achieved notable improvements in its day-to-day balance sheet efficiency. During the first half of FY27, the company successfully brought down its net working capital cycle to 155 days from 202 days previously recorded. This compression was helped by tighter inventory management, where holding duration dropped from 104 days down to 75 days. Additionally, payment collections from enterprise clients and telecom operators accelerated, with debtor days improving from 183 days down to 141 days. These operational optimizations ensure that expanding revenues translate cleanly into operating cash flows rather than remaining trapped in receivables. What this means for you The sustained rally in HFCL equity and the upward brokerage revision carry direct financial implications for retail investors, existing shareholders, and the broader telecom hardware ecosystem. • For Existing Shareholders: Investors who held positions have already realized gains of 174 percent over the past six months and 290 percent this year. If the brokerage target of Rs 410 materializes, current holdings could yield up to an additional 53 percent return. • For Prospective Buyers: With the equity closing at Rs 268.81 on 20 October, entry valuations require careful evaluation after a prolonged run-up. Retail participants should consult certified advisors to assess risk tolerance before committing capital at multi-year highs. • For the Telecom Sector: A foreign export contribution of 57 percent within the Rs 28,900 crore order book underscores robust global acceptance for Indian telecom hardware. Continued 5G infrastructure rollouts will bolster domestic production capacity and component supply ecosystems. • For Working Capital Health: Cash conversion cycle reductions from 202 to 155 days alongside lower inventory holding durations mean capital is freed up faster. This operational fluidity enhances balance sheet strength and lowers debt dependency during ongoing expansion phases. Why this happened The upgrade by Nuvama and the sustained rally in HFCL shares are underpinned by a sharp acceleration in quarterly profits, aggressive revenue guidance, and massive order visibility. • Quarterly Earnings Beat: Revenue surged 144 percent year-on-year during Q2 FY27, while net profit spiked 435 percent over the prior year and 59 percent sequentially. These strong profitability metrics triggered immediate institutional buying interest. • Doubled Revenue Growth Forecast: Management revised its FY27 revenue growth guidance upward from 40 percent to over 80 percent. The company also indicated that its long-range milestone of Rs 10,000 crore turnover slated for FY29 could be achieved ahead of schedule. • Record Global Order Inflow: The total order book climbed to an unprecedented Rs 28,900 crore, backed by strong international demand. Foreign exports constitute 57 percent of this backlog as telecom carriers step up capital expenditure on 5G fiberisation. • Balance Sheet Efficiency Gains: The net working capital timeline contracted from 202 days to 155 days during H1 FY27. Days sales outstanding improved to 141 days while inventory periods reduced to 75 days, materially boosting liquidity and operating cash conversion. Questions & Answers 1. What is the revised target price set by Nuvama for HFCL? Nuvama Institutional Equities has maintained a Buy rating on HFCL, raising its target price from Rs 380 to Rs 410 per share. 2. How has HFCL performed on the stock exchange this year? The stock has yielded a 290 percent return year-to-date, gaining 25 percent in the last month and closing at Rs 268.81 on 20 October 2026. 3. What were HFCL's financial results for Q2 FY27? In Q2 FY27, HFCL recorded a 144 percent year-on-year increase in revenue, while net profit grew by 435 percent year-on-year and 59 percent quarter-on-quarter. 4. What is the total value of HFCL's current order book? The company holds an all-time high order book of Rs 28,900 crore, with international exports making up 57 percent of the total. 5. How have HFCL's working capital metrics improved? In H1 FY27, the net working capital cycle reduced to 155 days from 202 days, with inventory days dropping to 75 and payment recovery days improving to 141. https://trendkia.com/en/business/timahi-natijon-aura-rikorda-rdaron-ke-dama-para-hfcl-men-bari-teji-ke-asara-nuvama-ne-diya-410-rupaye-ka-naya-lakshya-49931 TrendKia — Har trend, sabse pehle.