HIMACHAL FUTURISTIC COMMUNICATIONS
I bought 100 shares of Himachal Futuristic Communications at ₹21.35 per share. Should I hold it? - Goteti Srinivasarao
Himachal Futuristic Communications operates as a telecom infrastructure enabler. The company’s operations involve infrastructure development, system integration, and manufacture and supply of telecom equipment and optic fibre cable (OFC). The company’s segments include telecom products and turnkey contracts and services, among others. The company’s turnkey inbuilt systems are used for underground metro stations, tunnel coverage, hotels, malls, government offices and airports provides professional engineering services, including installation and commissioning services, for the deployment of the optical transport network.
The company offers a variety of OFS, including aerial cables, armoured cables and micro cables. The company’s telecom equipments include microwave radios, and electronics, such as telecom power, battery management and solar. Further, It also provides solutions for telecom networks, such as in-building, OFC and optical transmission; for railway’s telecom network, as well as for cities.
On the financial front, Himachal Futuristic Communications recorded a 62.94 per cent hike in its net sales to ₹903.71 crore for the first quarter of FY18 as against ₹554.62 crore in the first quarter of the previous year. However, the PBIDT of the company dropped 13.09 per cent to ₹54.05 crore in Q1FY18 as against ₹62.19 crore in the first quarter of FY17. The company’s PAT also declined by 44.50 per cent to ₹25.63 crore in Q1FY18 as against ₹46.18 crore in Q1FY17. On an annual basis, the company’s net sales declined by 21.58 per cent to ₹2,241.44 crore in FY17 as against ₹2,858.37 crore in FY16. The company’s PBIDT decreased 44.20 per cent to ₹178.49 crore in the fiscal year 2017 as against ₹319.86 crore in the previous fiscal. The PAT of the company declined 17.77 per cent to ₹123.72 crore in FY17 as compared to ₹150.45 crore in the previous fiscal. The stock is on a growth momentum. We recommend the reader-investors to HOLD the stock for the short term.