HFCL-HIMACHAL FUTURISTIC COMMUNICATIONS LIMITED-WILL MR.MAHENDRA NAHATA LIFT UP HFCL TO ITS PAST GLORY AND THE ANSWER IS YES HE CAN.
Brief Profile
Mr. Mahendra Nahata has been the Managing Director of Himachal Futuristic Communications Ltd. since October 2005. Mr. Nahata is employed at Jumbo Techno Services Pvt. Ltd. He was one of the promoters of HFCL Group in 1987. He has more than 22 years of business experience. In recognition of his vide experience in the Telecom Industry, he was elected President of Telecom Equipment Manufacturers Association of India (TEMA) for two years. He serves as the Chairman of HTL
FINANCIAL STATUS AS ON DATE OF HFCL
Himachal Futuristic Communications Ltd., incorporated in the year 1987, is a Mid Cap company (having a market cap of Rs 3693.34 Crore) operating in Telecommunications sector.
Himachal Futuristic Communications Ltd. key Products/Revenue Segments include Turnkey Contracts which contributed Rs 1658.01 Crore to Sales Value (73.97 % of Total Sales), Telecom Products which contributed Rs 583.43 Crore to Sales Value (26.02 % of Total Sales)for the year ending 31-Mar-2017.
For the quarter ended 31-03-2017, the company has reported a Consolidated sales of Rs 750.34 Crore, up 82.02 % from last quarter Sales of Rs 412.24 Crore and unchanged .00 % from last year same quarter Sales of Rs Crore Company has reported net profit after tax of Rs 31.37 Crore in latest quarter.
The company’s top management includes Dr.Ranjeet Mal Kastia, Mr.Arvind Kharabanda, Mr.Mahendra Nahata, Mr.Mahendra Pratap Shukla, Mr.Ranjeet Kumar Soni, Mrs.Bela Banerjee. Company has S Bhandari & Co. as its auditoRs As on 31-03-2018, the company has a total of 1,239,377,194 shares outstanding.
WHAT MADE HFCL SHARE PRICE TO NOSE DIVE FROM ITS PAST GLORY
NEWS OF 2001
Stock market crash: Small investors lose much of their life's savings and trust
If Kerry Packer were to sit up and do his arithmetic he would discover that the Rs 1,040 crore he invested last year for a 9 per cent stake in the hugely hyped Himachal Futuristic
Communications Ltd (HFCL) was now worth a little over Rs 150 crore - a dip of 85 per cent. The Australian billionaire may have a war chest to pack the loss away. Not the thousands of small Indian investors many of whom lost their lifetime's savings and trust on the stock markets in the past few weeks.Thousands of investors across the country, who had pleaded with their brokers to get them HFCL shares, find themselves short-changed mercilessly by a volatile cocktail of greed and corruption.
News of 2010
TAINTED PAST WHICH IS OVER NOW
SEBI settles Himachal Futuristic case with consent order
The market regulator has disposed of a case against Himachal Futuristic Communications for suspected involvement in rigging share prices in a case dating back to 1999-2001
The Securities and Exchange Board of India (SEBI) has disposed proceedings against Himachal Futuristic Communications Ltd (HFCL) in the 2001 share price manipulation case, with a consent order.
SEBI in an order CO/ID2/739/332/2010 dated 28 January 2010, said: "This consent order disposes of the above mentioned proceedings under Sections 11(4) (b) and 11B of SEBI Act, 1992 read with Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, pending against the applicants named above in the matter of Himachal Futuristic Communications Ltd."
The market regulator said that HFCL, its promoters and associated entities had paid Rs10 crore towards settlement of the case, as per the recommendation of a High-Powered Committee constituted by SEBI.
"Accordingly, the applicants, without admitting or denying the charges, have conveyed their acceptance of the aforesaid recommendations vide their letter dated 30 December 2009 and have remitted a sum of Rs10,00,00,000/- (Rupees Ten Crore only) towards settlement charges vide demand drafts, payable at Mumbai," the consent order said.
The HFCL case dates back to the 1999 to 2001 period of the Ketan Parekh scam. Mr Parekh, the main accused in the fraud, allegedly rigged share prices of ten companies, including Zee Telefilms and HFCL.
It is now common knowledge that Global Trust Bank (GTB), Zee Telefilms and HFCL were in cahoots with Mr Parekh and had all routed large sums of money to corporate entities connected with him. In 2001, SEBI had told the Joint Parliamentary Committee that Zee and HFCL had diverted Rs515 crore and Rs700 crore respectively to Mr Parekh.
After conducting investigations, SEBI, in 2004, sent show-cause notices to HFCL, its directors and associates. While the proceedings were in progress, on 31 May 2008 and 4 June 2008, HFCL proposed a settlement of the proceedings through a consent order. SEBI then constituted a high-powered committee which also recommended settling the issue if the applicants agreed to make payment of Rs10 crore towards settlement charges.
On 11 January 2010, the Delhi High Court also affirmed the terms of the settlement as recommended by the High-Powered Committee and approved by SEBI, following which the market regulator disposed proceedings against HFCL. (Read more about SEBI’s consent orders
LATEST FINANCIALS
For the year ended 31.3.2018 HFCL (Standalone basis) achieved Total Revenue of Rs.3070 Cr as against Rs.2241 Cr with PAT of Rs.155 Cr.Vs.124 Cr (2017) EPS Rs.1.25 (FV Rs.1).
FUTURE PROSPECTS ARE VERY BRIGHT
- HANDSOME ORDERS IN HAND AND THEIR SUSTAINABILITY FROM BSNL/DEFENCE/RAILWAYS/SAFE AND SMART CITIES/MAJOR TELECOS ETC.
- HFCL to build Rs 260-cr optical fibre plant in Telangana in addition to existing facilities at Solan - Chennai and Goa.
This manufacturing facility will produce optical fibres mainly used for telecommunication (4G/5G) and various networks for broadband & FTTx in India and abroad.
- FORWARD LOOKING PROMOTERS NOW BY FORGETTING THE PAST
- SHARE WARRANTS (on private placement basis)WERE ISSUED RECENTLY TO FINANCE EXPANSION and
- RENOWNED BROKERS LIKE SHANKAR SHARMA HOLDING GOOD CHUNK OF SHARES
- Extracts from the Interview of Mr.Shankar Sharma dated Oct 13 2017 published in ET
I am not interested in looking at the past, I learnt from the past for company or a sector but idea is to look forward and that is where you are going to make the money, not in the past. I do not know about JP Associates. I have followed the story but I never participated. HFCL had a terrific turnaround in the last 10 years and market ignored it for 10 years. When the company that takes turnover up 27 times in seven years, profit up 100 times and the stock price remains flat for seven-eight year ..
Only just begun the move.
Yes, just begun the move so I like those situations and people say they had a problem in 2001. But every company has a problem. The question is has the management dealt with that problem, have they repaid the debt? They have cleaned up their balance sheet. The entire Jio thing has been done by them. I am saying if you say in the past you will not buy a single stock in the world, you have to forget the past and that is true whether it is a JP or ..
The Second-Innings Universe
But are you going to stay put and have that conviction for the next one year to come? How long is this HFCL story to stay? Is it for the next two to three years or is it for your immediate gains? Make the money and get out?
I am buying stocks which is locked in. Even if the stock goes up four times, I am locked in for quite a while so it is a preferential offer. When you buy companies like this, you have to buy them ..
All management and small caps go through that phase and then they crash and they burn and then in the second coming usually they are much more sober, much more careful they know that look all that rubbish never work let us just focus on delivering good numbers, good businesses. I like those situations, I like a guy who has been through trouble the second time around he will be careful not to repeat the troubles of the first innings. So all my companies are second innings companies.
PRESENT SHARE HOLDING
| Category | No. of shares | Percentage |
|---|---|---|
| Promoters | 474,682,198 | 38.30 |
| General Public | 378,429,259 | 30.53 |
| Others | 275,169,227 | 22.20 |
| Foreign Institutions | 77,794,526 | 6.28 |
| Financial Institutions | 32,145,363 | 2.59 |
| NBFC and Mutual Funds | 1,156,621 | 0.09 |
Himachal Futuristic Communications Ltd
peer Average
Peer Range
Trend
12.72
-2.93
-59.39
28.71
5.52
-7.48
-65.26
5.52
9.47
13.74
-10.92
140.35
1.64
1.03
-0.31
2.89
Profitability and Growth
7.07
-18.98
-138.45
14.87
7.98
-6.52
-117.42
39.99
5.17
-34.27
-134.84
5.73
Financial Strength
Liquidity
2.08
2.75
0.15
8.46
2.36
3.89
0.15
13.80
0.11
0.28
0.00
2.14
Solvency
0.28
0.23
0.00
0.83
Coverage Ratios
2.56
6.82
0.00
15.67
Better performer than its peers on this ratioAverage performer than its peers on this ratioUnderperformer than its peers on this ratio
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