HFCL's X-factor is defence & aerospace? Deven Choksey sees another 66% upside potential, here's why

Brokerage Deven Choksey initiated coverage on HFCL with a Buy rating and a target of Rs 362, implying 66 percent upside from the previous close of Rs 218. Defence and aerospace is flagged as the key growth engine, with defence revenue projected to scale from Rs 77 crore in FY26 to Rs 5,000 crore by FY29 at 25 percent plus EBITDA margins. HFCL is also investing Rs 580 crore in a preform manufacturing facility and transitioning into an AI optical connectivity platform through its OptiQ AI brand, with HTL Limited's data centre interconnect solutions expected to contribute Rs 400 crore in FY27 and Rs 800 crore in FY28.