Multibagger Defence Stock Jumps 6% On Wednesday After Securing Rs 135 Crore Indian Defence Network AMC Order

On Wednesday, the Indian equity benchmarks traded higher during the afternoon session, with the benchmark Nifty 50 index rising 0.14 per cent to 23,947.70. Defence and telecom infrastructure stocks remained in focus following fresh government order announcements. In this segment, HFCL share price surged more than 6 per cent to Rs 171.80 after the company secured a defence-related AMC order worth Rs 135.09 crore from RailTel Corporation of India Limited.

HFCL Bags Rs 135 Crore Defence Network AMC Order

HFCL  announced that it has secured a purchase order worth approximately Rs 135.09 crore, including applicable GST, from RailTel Corporation of India Limited. The order pertains to a five-year Annual Maintenance Contract (AMC) for the Secure Operations (OPS) Network serving data centres of the Indian Defence forces. According to the company, the contract will remain valid till January 2031.

RailTel Corporation of India Limited, a Government of India undertaking under the Ministry of Railways, awarded the contract in the normal course of business. HFCL clarified that the transaction does not qualify as a related party transaction and that neither its promoter nor promoter group entities have any interest in the awarding entity.

Scope Of The Contract

The AMC follows HFCL’s earlier execution of the Secure OPS Network project for Indian Defence forces, which was also awarded by RailTel. Under the earlier project, HFCL completed the design, supply, installation and commissioning of one central data centre and 120 mini data centres across defence establishments in India.

The original project involved setting up a secure defence communication network comprising hardware, software and data centre infrastructure along with AI-enabled network security systems. Following completion of the warranty period, RailTel has now mandated HFCL to undertake end-to-end maintenance support for the network. The scope of the AMC includes preventive and corrective maintenance, network monitoring, incident management, performance optimisation and 24x7 technical support services.

Stock Performance

HFCL shares were trading at Rs 171.80 during Wednesday’s afternoon session, up 6.18 per cent from the previous close of Rs 161.80. The stock’s 52-week high and low stood at Rs 162.75 and Rs 61.16, respectively. The stock has delivered returns of 88.18 per cent over the last one year and around 155.45 per cent over the past three years.

Shareholding Pattern

Foreign Institutional Investors (FIIs) reduced stake in HFCL Ltd to 7.08 per cent from 7.48 per cent in the previous quarter. Domestic Institutional Investors (DIIs) increased stake to 7.02 per cent from 6.74 per cent.

About The Company

HFCL Limited is a technology company engaged in telecom and defence equipment manufacturing, optical fibre and optical fibre cable production, and digital network solutions. The company operates six manufacturing plants and exports products to more than 45 countries.

What are your views on HFCL’s latest defence network AMC order and growth opportunities in the defence communication segment? Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.