HFCL Limited (HFCL.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-94.1%

₹13.08

vs ₹221.77 price

Levered DCF

-₹38.81

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

6.24

Safe zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	31.86×	65.67×	42.32×	27.96×	33.07×	13.52×	5.11×	13.28×
P/B	2.03×	2.86×	3.53×	2.71×	3.7×	1.69×	0.7×	2.05×
P/S	2.01×	2.87×	3.12×	1.77×	2.19×	0.73×	0.3×	0.62×
EV / EBITDA	13.73×	28.44×	25.12×	15×	16.75×	7.55×	3.7×	8.59×
Gross margin	23.1%	27.2%	27.8%	26.5%	25.9%	22.9%	23.4%	16.8%
Operating margin	12.2%	17.9%	19.6%	19.0%	19.0%	16.9%	17.3%	12.3%
Net margin	6.3%	4.4%	7.4%	6.3%	6.6%	5.4%	5.9%	4.6%
Current ratio	1.99×	1.86×	2.08×	1.91×	1.75×	1.39×	1.6×	1.56×
Debt / equity	0.39×	0.37×	0.25×	0.3×	0.28×	0.49×	0.44×	0.41×
Interest coverage	2.5×	3.94×	5.93×	5.92×	5.4×	4.25×	5.78×	6.48×
Dividend yield	0.1%	0.2%	0.2%	0.3%	0.2%	0.0%	1.3%	0.3%
Payout ratio	4.6%	16.3%	8.7%	8.1%	6.1%	0.0%	6.7%	4.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	6.4%	4.3%	8.3%	9.7%	11.2%	12.5%	13.6%	15.3%
Return on invested capital	6.7%	10.1%	12.7%	16.0%	18.2%	18.9%	18.0%	19.5%
Return on assets	3.5%	2.4%	5.1%	5.5%	6.1%	4.6%	5.9%	6.7%
Free cash flow yield	-8.3%	1.4%	-3.3%	-1.3%	0.2%	-1.5%	-0.0%	-4.7%
Earnings yield	3.1%	1.5%	2.4%	3.6%	3.0%	7.4%	19.4%	7.4%
Enterprise value	₹113.6B	₹126.8B	₹146.1B	₹92.8B	₹111.2B	₹41.5B	₹18.9B	₹35.3B
Net debt / EBITDA	1.73×	2.31×	1.13×	1.41×	1.16×	1.68×	1.41×	1.41×
Cash conversion cycle (days)	204	129	229	190	109	89	121	71