On January 17, HFCL shares are in the spotlight after the company won a big project worth about Rs 2,501.30 crore. This money is for building and taking care of a telecom network called BharatNet Phase III in Punjab. They received the contract from Bharat Sanchar Nigam Limited (BSNL).
The project will involve designing, supplying, constructing, installing, upgrading, operating, and maintaining the network. HFCL will follow a method called Design, Build, Operate, and Maintain (DBOM) to complete the work in three years. After that, they will take care of the network for another ten years, with costs expected to be 5.5% of the project’s cost for the first five years and 6.5% for the next five years.
Here’s how the money is broken down: Rs 1,244.61 crore is for building costs (capital expenditure), Rs 746.76 crore for operating costs for the new network, and Rs 509.94 crore for maintaining the current network.
Stock Performance and Technical Indicators
Currently, the HFCL stock has been facing some tough times, dropping by 26% in the last three months. However, over the last two years, it has managed to rise by 40%. Right now, the company’s market value is Rs 14,773 crore.
Looking at its technical indicators, the stock’s Relative Strength Index (RSI), which measures how overvalued or undervalued it is, stands at 38.7. Generally, an RSI below 30 means a stock is oversold, while above 70 indicates it’s overbought. The MACD reading is -5.6, suggesting the stock is bearish right now.
Also, HFCL shares are trading below several key averages, meaning they are currently not doing too well compared to past performances.
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