HFCL

HFCL shares are rising mainly because the company has entered a strong order-growth phase, particularly in optical-fibre cables and data-centre connectivity. The biggest recent trigger was a ₹522.73 crore export order for optical-fibre cables, following several other large domestic and international wins; these orders have taken HFCL’s order book to around ₹26,665 crore, giving much stronger revenue visibility. The company is also benefiting from rising global demand for fibre infrastructure driven by AI, hyperscale data centres, cloud computing, 5G, FTTH and telecom network modernisation, prompting HFCL to approve another ₹400 crore capacity expansion. In addition, the credit profile of its subsidiary HTL improved, with CARE upgrading several bank facilities to CARE A (CE); Positive, supporting investor confidence. Overall, the market is pricing in strong order inflows, export growth, AI/data-centre demand and improving earnings visibility, although after the very sharp rally, valuation and execution risk should also be monitored closely.