An investment of ₹10,000 in HFCL stock in March last year is worth ₹60,000 now

• Shares of Himachal Futuristic Communications have surged significantly by 497% from March 2020.
• The largest provider of WiFi solutions says the disruptions caused by COVID-19 pandemic have increased the demand for home and industrial internet of things (IoT) devices and applications.
• HFCL’s profit after tax grew to ₹90.69 crore in June quarter as compared to ₹21.34 crore in corresponding quarter last year.
  

While the pandemic slowed business for sectors like aviation, automobile, and hospitality, some sectors related to information technology enjoyed a boost due to the digital transformation demand. Himachal Futuristic Communications (HFCL) is one such company that benefited enormously from the heightened demand for internet devices.

The technology enterprise company manufactures high-end transmission and access equipment, optical fibre and optical fibre cables used in WiFi portals and creating communication networks for telecom service providers, railways, defence, and smart city and surveillance.

In fact, it is one of the largest providers of WiFi solutions. Also, the company is likely to be a big player in 5G telecom services.

The disruptions caused by the pandemic have increased the demand for home and industrial internet of things devices and applications, said the company in an investor presentation.

The company has already shipped 1.5 lakh units of wi-fi and ultra broadband radio to leading telecom service providers in FY21.

In fact, under Bharat Net phase II project, wi-fi, infrastructure, electronics and optic networks brings out an ₹40,000 crore opportunity for the company

The company serves technological equipment and services to Reliance Jio, Tata, Airtel, Vodafone, Nokia, BSNL, Larsen & Toubro, Bharat Petroleum, Indian Oil and many more.

It has also been working with the government under the Prime Minister WiFi Access Network Interface (PM-WANI) project to provide internet access to every nook and corner of the country.

“Initiative by Indian government like BharatNet, which is the world's largest optical fiber-based rural broadband connectivity project, growing usage of wifi connection in home segment, provision of production linked incentive scheme (PLI) by the government, approval of 5G spectrum plans has amplified the company’s operations,” said Mahendra Nahata, managing director of HFCL in a financial report statement.

At 2:52 p.m., the stock was trading 2% higher at ₹ 80.40.

SEE ALSO: Angel Broking shares surge 20% as rising awareness among investors turns in favour of the stock broker
Tatva Chintan Pharma Chem IPO -- Should you subscribe? Here’s what analysts are saying