HFCL’s AI, data centre exposure drives Nuvama’s Buy call; target implies 56% upside

Nuvama has initiated coverage on HFCL with a ‘Buy’ rating and a target price of ₹380, against its reference price of ₹244. The brokerage expects the company’s shift towards telecom and networking products, along with rising demand from data centres and exports, to drive strong earnings growth.

HFCL has been moving away from its earlier focus on turnkey contracts towards optical fibre, telecom products and data centre connectivity. Products accounted for 83% of revenue in Q1FY27, compared with 27% in FY21, according to Nuvama.