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Valuation concerns surface as HFCL trades above historical comfort levels
Rising multiples at HFCL signal higher price risk, as elevated valuations clash with sector challenges and leave limited room for earnings or execution disappointments.
Market participants are reassessing HFCL Ltd after a noticeable shift in valuation metrics placed the stock in expensive territory. Despite a recent share price uptick, elevated price to earnings and price to book ratios now sit above historical averages and peer benchmarks. This repricing has heightened sensitivity to execution risks at a time when the telecom equipment sector faces margin pressure, competitive intensity, and uneven order visibility.