Dividend Paying Telecom Stock Gains 7% This Week, Hits New 1-Year High After 5G Products Launch; Do You Own?

HFCL, a telecom infrastructure company in the midcap basket, has touched a new 52-week high after the company introduced its indigenously designed and developed 5G Fixed Wireless Access (FWA) Customer Premise Equipment (CPE) solution. In the trading week that ended on December 22nd, the stock rallied by nearly 7%.

On BSE, HFCL's share price ended at Rs 82.01 apiece, up by 6.13% on Friday alone with the market cap reaching to Rs 11,717.37 crore. On this day, the stock also touched a new 52-week high of Rs 83.50 apiece.

The stock from December 18th to 22nd, zoomed by at least 6.8% on the exchange.

HFCL is also among the dividend-paying stocks in the telecom sector. It holds a consistent record of paying dividends for the past five years. In 2023, the stock paid dividends up to Rs 0.20 per share or 20% to its shareholders.

In its regulatory filing, HFCL said, that as India emerges as one of the fastest nations to roll out a 5G network, the 5G technology has
already become a global phenomenon. As 5G continues its global proliferation, ensuring foolproof and efficient last-mile connectivity becomes paramount for the network's overall performance and efficiency. To fully unleash 5G's potential, it is crucial to provide robust last-mile solutions that cater to the diverse needs of telecom service providers and end-users.

Recognizing this imperative, HFCL decided to introduce indigenously developed 5G Fixed Wireless Access (FWA) Products. Breaking new ground as the first company in India to achieve this milestone, HFCL's 5G FWA Products will be able to give optical-fiber-like connectivity on 5G wireless networks to the customers bridging the gap between broadband served and unserved areas by ensuring flawless wireless broadband connectivity.

Further, the regulatory filing, said that HFCL's 5G FWA Products deliver not only high-speed and reliable broadband access but will also elevate device experiences, expanding accessibility, and providing faster speeds. This innovative FWA solution, catering to multi-bands (Sub 6 GHz, mmWave), multi-technology (5G Standalone and 5G non-standalone with LTE), Indoor as well as Outdoor eliminates the constraints of physical cable connection simultaneously serving as a crucial bridge between the 5G network and end-user devices offering enhanced connectivity. The products are already under trial with domestic and international customers.

HFCL is at the forefront, contributing to the rapid growth of 5G Fixed Wireless Access. Industry estimates project the global 5G FWA market to reach USD 68 billion by 2030.

HFCL's dedication to advancing 5G technology through cutting-edge research and development underscores its pivotal role in reshaping the future of telecommunications.

The company believes its latest 5G development is well-poised to support service providers by contributing to the goal of digital transformation and connectivity worldwide.

HFCL has developed capabilities to provide premium quality Optical Fibre and Optical Fibre Cables, state-of-the-art telecom products including 5G Radio Access Network (RAN) products, 5G Transport Products, WiFi Systems (WiFi 6, WiFi 7), Unlicensed Band Radios, Switches, Routers and defence electronics products.

Also, HFCL is a partner of choice for its customers across India, Europe, Asia Pacific, Middle East, Africa and USA.