Synopsis

HFCL has transitioned from a base breakout to a momentum extension after a sharp rally, says Harshal Dasani of INVasset PMS. The stock has broken past its earlier 52-week high zone, signalling strong momentum, but analysts caution the easy phase of the breakout may be over. The next pullback will help indicate whether buying is institutional or a short-term squeeze.

HFCL shares surged nearly 10% to hit a fresh 52-week high on Monday, extending gains for the fourth consecutive session, with analysts flagging key technical levels for investors to watch after the sharp rally.

The telecom equipment and optical fibre cable manufacturer had hit a 52-week low of Rs 59.82 in January this year. In less than four months, the stock has rallied around 172% to touch a fresh record high of Rs 162.50 on Monday.

HFCL shares have jumped over 144% from the March 24 low of Rs 66.55 on the NSE. The stock has gained more than 15% in just one week and currently trades at a P/E ratio of over 69.

Should you buy, sell or hold HFCL shares?

HFCL has moved from a base breakout into a momentum extension, according to Harshal Dasani, Business Head at INVasset PMS. He noted that the stock has crossed its earlier 52-week high zone in a sharp one-week move, confirming strength, but added that the easy part of the breakout is likely behind it.

When prices expand this quickly above prior resistance, the first pullback typically indicates whether the move is driven by institutional accumulation or just a short-term squeeze, he added.

“The structure remains constructive as long as HFCL holds the breakout band around Rs 150 to Rs 155 on closing basis. A controlled retest with lower volumes would keep the trend healthy. A close back below that zone would weaken the breakout and open the risk of a deeper mean reversion. The quarterly trigger has been strong and the order book narrative has improved, but the chart has already priced in a lot of that optimism. HFCL is a strong chart, not a low-risk chart. Fresh momentum needs consolidation now; otherwise, the risk-reward gets stretched even if the broader trend stays intact,” according to Dasani.

HFCL earnings snapshot

Earlier in April, HFCL reported a consolidated net profit of Rs 178.50 crore for the fourth quarter of the financial year 2026, against a net loss of Rs 81.44 crore reported in the corresponding quarter of the previous financial year. The firm’s net sales meanwhile surged 128% YoY to Rs 1,824 crore in the year-ago period.

On a sequential basis, profit rose 82% from Rs 98 crore in the previous quarter, while revenue climbed 51% QoQ from Rs 1,211 crore reported in the third quarter of FY26.

Also read: Vodafone Idea shares jump 2% to a fresh record high, rally over 100% in 1 year

(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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