Nuvama initiates Buy on HFCL with 56% upside target on data centre, AI demand

Nuvama Wealth has initiated coverage on HFCL with a 'Buy' rating and a target price of Rs 380, implying 56% upside from its reference price of Rs 244.

The brokerage expects HFCL's transition towards telecom and networking products to support earnings expansion. Rising demand from data centres and growing exports are positioned as key growth drivers for the company.

The rating reflects Nuvama's confidence in HFCL's strategic repositioning and exposure to high-growth segments including artificial intelligence infrastructure.