HFCL Intrinsic Value

HFCL • Telecom
Current Stock Price
₹72.64
Primary Intrinsic Value
₹22.56
Market Cap
₹1046 Cr
+100.0% Upside
Median Value
₹145.28
Value Range
₹22 - ₹182
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

HFCL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹22.56 ₹18.05 - ₹27.07 -68.9% EPS: ₹1.88, Sector P/E: 12x
Book Value Method asset ₹181.60 ₹163.44 - ₹199.76 +150.0% Book Value/Share: ₹286.04, P/B: 1.0x
Revenue Multiple Method revenue ₹145.28 ₹130.75 - ₹159.81 +100.0% Revenue/Share: ₹293.33, P/S: 0.8x
EBITDA Multiple Method earnings ₹145.28 ₹130.75 - ₹159.81 +100.0% EBITDA: ₹812.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹181.60 ₹145.28 - ₹217.92 +150.0% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹21.79 ₹19.61 - ₹23.97 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹21.79 ₹19.61 - ₹23.97 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹145.28 ₹130.75 - ₹159.81 +100.0% ROE: 7.0%, P/E Multiple: 10x
Graham Defensive Method conservative ₹110.00 ₹99.00 - ₹121.00 +51.4% EPS: ₹1.88, BVPS: ₹286.04
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

HFCL Intrinsic Value Analysis

What is the intrinsic value of HFCL?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of HFCL (HFCL) is ₹145.28 (median value). With the current market price of ₹72.64, this represents a +100.0% variance from our estimated fair value.

The valuation range spans from ₹21.79 to ₹181.60, indicating ₹21.79 - ₹181.60.

Is HFCL undervalued or overvalued?

Based on our multi-method analysis, HFCL (HFCL) appears to be trading below calculated value by approximately 100.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 9.96 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 7.0% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 18.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.56x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹396 Cr ₹137 Cr Positive Free Cash Flow 7/10
March 2024 ₹-45 Cr ₹-270 Cr Negative Cash Flow 3/10
March 2023 ₹235 Cr ₹213 Cr Positive Free Cash Flow 8/10
March 2022 ₹205 Cr ₹-24 Cr Positive Operating Cash Flow 6/10
March 2021 ₹145 Cr ₹63 Cr Positive Free Cash Flow 7/10