ð HFCL Limited ð RITES
ð Both Company Analysisð
ðHFCL Business overview
HFCL Ltd (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high end telecom equipment, Optical Fiber and Optic Fiber Cable (OFC).
ðRites ltd Business overview
Established in 1974, RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach.
The company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).
ðHFCL Revenue Split :-
âTelecom Products:67%
âPower Projects : 14%
âServices: 19%
ðRites ltd Revenue Split :-
âConsultancy Services: 45.5%
âTurnkey Projects : 23.9%
âLeasing : 4.5%
âManufacturing : 34.1
ðHFCL Product portfolio :-
âFiber Optics
âTelecommunication
âDefense
âRailway Communications
âSystem Integration Services
ðRites ltd Product portfolio :-
âRolling Stock
âRailway Equipment
âSoftware Solutions
âTechnology Transfer
ðHFCL Order book
HFCL’s total consolidated order book stood at â¹7,009 crore
ðRites ltd Order book
The order book of RITES Ltd was â¹5008 crore
ðHFCL Client
âVodafone Idea, Airtel, Jio, Bharti Airtel, BSNL, MTNL,
âIndian Armed Forces: Army, Navy, Air Force
âDRDO
âIndian Railways
âMetro rail
ðRites ltd Clients
âCentral Government
âState Governments
âPublic Sector Undertakings (PSUs)
âMultilateral Agencies
âPrivate companies
ðHFCL Manufacturing facilities
âSolan, Himachal Pradesh: This state-of-the-art electronics manufacturing plant
âGurgaon, Haryana: This facility focuses on the production of optical fiber cables and related products.
âGoa: Another optical fiber cable and product manufacturing facility.
âChennai, Tamil Nadu: This is HFCL’s newest plant, which started commercial production of optical fiber in November 2023
âHosur, Tamil Nadu: This facility manufactures cable reinforcement solutions.
ðRites ltd Manufacturing facilities
It has a wide range of experience in the manufacturing sector, having provided consultancy services for the setting up of new manufacturing facilities, as well as for the modernization and upgradation of existing facilities.
ðHFCL Key projects
â5G network rollouts: HFCL is playing a key role in the rollout of 5G networks in India.
âRailway communications: HFCL has implemented various communication networks for the Indian Railways
âOpen-source Wi-Fi 7 Access Point: HFCL developed the world’s first open-source Wi-Fi 7 Access Point
ðRites ltd Key projects
âRailway Infrastructure: Third line from Pendra Road to Anuppur, PMC work for railway electrification across 2200 KM
âHighway Development: PMC for KIIFB-funded road and bridge projects in Kerala,
âAirports: Design and PMC for development of airports at Chitrakoot and Raichur.
âUrban Infrastructure: Detailed engineering & project supervision for development of ICD at Karambeli, Vapi.
ðHFCL Growth strategies
âDedicated 5G business division: HFCL has established a specific division to capitalize on the immense opportunities in India’s 5G rollout. This division focuses on product development, in-system integration, and O-RAN solutions.
âDeveloping 5G-ready products: HFCL is actively innovating and launching new products compatible with 5G networks, like Access Points, Wi-Fi Access Points, and Unlicensed Band Radio.
âFocus on R&D: HFCL continuously invests in research and development to stay ahead of the curve. This includes collaborations with global tech giants and initiatives like the 5G Lab-as-a-Service and open-source Wi-Fi 7 Access Points.
âAdopting transformative technologies: HFCL is actively embracing new technologies like AI, IoT, and cloud computing to enhance their product offerings and internal processes
ðRites ltd Growth strategies
âRITES Videsh: This initiative aims to tap into opportunities in international markets, particularly in Africa and Southeast Asia. They have already secured several projects in these regions and are actively looking for more.
âNew-age areas: RITES is also exploring new areas of growth within the transport sector, such as intelligent transportation systems, logistics, and urban mobility.
âRailways: RITES has a strong presence in the Indian Railways sector and is looking to further capitalize on the government’s focus on railway infrastructure development.
âOther infrastructure sectors: The company is also expanding its presence in other infrastructure sectors, such as roads, highways, ports, and airports
ðHFCL Future initiatives
âEmerging Technologies: HFCL is constantly exploring new technologies to be future-ready. They are actively involved in research and development activities related to next-generation technologies like AI, IoT, and cybersecurity solutions.
âSocial Responsibility: HFCL has a strong commitment to corporate social responsibility (CSR). They carry out preventive healthcare initiatives across India and support community development projects.
âFinancial Performance: HFCL plans to further improve its financial performance by focusing on operational efficiency, margin improvement, and debt reduction.
âDefense Equipment Manufacturing: HFCL is setting up a greenfield facility for manufacturing defense equipment. This aligns with the “Make in India” initiative and aims to cater to the increasing demand for domestically produced defense electronics
ðRites ltd Future initiatives
âGreen Infrastructure Solutions: Integrating sustainability into all infrastructure projects, focusing on renewable energy, energy efficiency, and carbon neutrality. This could involve developing green airports, railways, and roads, as well as implementing carbon capture and storage technologies.
âESG Compliance: Aligning operations and projects with Environmental, Social, and Governance (ESG) principles, potentially leading to improved stakeholder engagement and attracting environmentally conscious investors.
âCircular Economy Practices: Promoting resource efficiency and waste reduction through initiatives like reuse, recycling, and upcycling in infrastructure projects.
ðHFCLÂ Fundamental ratios
â¡Market Cap : â¹ 14,245 Cr.
â¡Current Price : â¹ 99.7
â¡Stock P/E : 46.6
â¡ROE : 10.2 %
â¡OPM : 13.4 %
â¡ROCE : 15.2 %
â¡Qtr Profit Var : -15.2 %
â¡Qtr Sales Var : -5.28 %
â¡ROIC : 13.0 %
â¡Return on assets : 5.97 %
â¡Debt to equity : 0.25
ðRites ltd Fundamental ratios
â¡Market Cap : â¹ 15,115 Cr.
â¡Current Price : â¹ 629
â¡ROE : 21.3 %
â¡OPM : 27.4 %
â¡ROCE.: 29.7 %
â¡Qtr Profit Var : -23.6 %
â¡Qtr Sales Var : -11.6 %
â¡ROIC : 24.2 %
â¡Return on assets : 9.64 %
â¡Debt to equity : 0.00
ðHFCL Shareholder Pattern
âPromoters ; 37.84%
âFIIs : 8.18%
âDIIs : 4.55%
âPublic ; 49.37%
âOthers : 0.08%
ðRites ltd Shareholder Pattern
â Promoters : 72.20%
âFIIs : 3.22%
âDIIs : 12.27%
âPublic : 12.31%
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