HPL Electric & Power Ltd - Stock Valuation and Financial Performance

BSE: 540136 | NSE: HPL | Electric Equipment | Small Cap

HPL Electric Share Price

318.25 -4.60 -1.42%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on HPL Electric

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

HPL Electric & Power stock performance -

mw4me loader
P/E Ratio (SA):
52.46
Market Cap:
2,033.5 Cr.
52-wk low:
76.3
52-wk high:
396.4

Is HPL Electric & Power Ltd an attractive stock to invest in?

1. Is HPL Electric & Power Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that HPL Electric & Power Ltd is a below average quality company.

2. Is HPL Electric & Power Ltd undervalued or overvalued?

The key valuation ratios of HPL Electric & Power Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is HPL Electric & Power Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of HPL Electric & Power Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of HPL Electric:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
HPL Electric & Power Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 10.2%10.6%10.4%6.5%5.1%5.4%4.5%3.9%4%5.8%-
Value Creation
Index
-0.3-0.2-0.3-0.5-0.6-0.6-0.7-0.7-0.7-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,0071,0451,1159271,0001,1039258501,0041,2151,360
Sales YoY Gr.-3.8%6.7%-16.9%7.9%10.3%-16.1%-8.1%18.1%21%-
Adj EPS 6.27.483.23.64.12.71.21.14.36
YoY Gr.-19.3%7.6%-60.4%13%15.1%-34.8%-53.7%-10.5%289.2%-
BVPS (₹) 66.968.776.5109.3111.1113.9116.3117.5118.3122.5126.8
Adj Net
Profit
28.934.537.120.322.926.417.287.127.839
Cash Flow from Ops. 45.527112-7.8959.95373.193.994-
Debt/CF from Ops. 9.319.15.2-42.148.7810.27.45.95.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 2.1%4%9.5%21%
Adj EPS -4%3.9%17.3%289.2%
BVPS7%2%1.8%3.5%
Share Price - 41.7% 85.8% 288.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
9.811113.83.23.72.31.10.93.64.8
Op. Profit
Mgn %
10.51212.711.89.710.71212.811.51212.5
Net Profit
Mgn %
2.93.33.32.22.32.41.90.90.72.32.9
Debt to
Equity
1.41.61.60.50.60.70.70.70.70.7-
Working Cap
Days
195218241307322307364408363318154
Cash Conv.
Cycle
10011711315518019325630126022349

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 4.80%

Net Profit is growing at healthy rate in last 3 years 17.25%

Debt to equity has declined versus last 3 years average to 0.71

Sales growth is good in last 4 quarters at 14.78%

Sales growth has been subdued in last 3 years 9.50%

Latest Financials - HPL Electric & Power Ltd.

Standalone Consolidated
TTM EPS (₹) 6 6.4
TTM Sales (₹ Cr.) 1,360 1,400
BVPS (₹.) 126.8 128
Reserves (₹ Cr.) 751 759
P/BV 2.49 2.47
PE 52.46 49.47
From the Market
52 Week Low / High (₹) 76.27 / 396.35
All Time Low / High (₹) 18.30 / 396.35
Market Cap (₹ Cr.) 2,034
Equity (₹ Cr.) 64.3
Face Value (₹) 10
Industry PE 84.1

Management X-Ray of HPL Electric:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of HPL Electric

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,0071,0451,1159271,0001,1039258501,0041,215
Operating Expenses 9029209748189039858157418891,069
Manufacturing Costs49453445454543364245
Material Costs699693741606660718571536654807
Employee Cost 5566107107125133130108118139
Other Costs 991159360748971617478
Operating Profit 10512514210997117111109115145
Operating Profit Margin (%) 10.5%12.0%12.7%11.8%9.7%10.6%12.0%12.8%11.5%12.0%
Other Income 5555444343
Interest 59707862465356606471
Depreciation 13161923213035424435
Exceptional Items 0000000000
Profit Before Tax 38444928333923111143
Tax 99128101273415
Profit After Tax 293437202326178728
PAT Margin (%) 2.9%3.3%3.3%2.2%2.3%2.4%1.8%0.9%0.7%2.3%
Adjusted EPS (₹)6.27.48.03.13.64.12.61.21.14.3
Dividend Payout Ratio (%)1%1%1%48%28%5%6%12%14%23%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 311319355703714732748755761787
Share Capital 19194664646464646464
Reserves 292300309639650668683691696723
Minority Interest0000000000
Debt383485548329431475533513522535
Long Term Debt679511608230233325
Short Term Debt316390431329424473503490489510
Trade Payables194244332254277206163181213210
Others Liabilities 999410468223250696089
Total Liabilities 9861,1421,3391,3551,4441,4451,4941,5171,5561,622

Fixed Assets

Gross Block327373435394436485557568592628
Accumulated Depreciation506685234474106147188222
Net Fixed Assets277307350371392412451422404406
CWIP 29030073187
Investments 15155454545454545454
Inventories254306300343395396422426488466
Trade Receivables328401506469447452440494460546
Cash Equivalents 46545859615756676962
Others Assets36586758956868537380
Total Assets 9861,1421,3391,3551,4441,4451,4941,5171,5561,622

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 4527112-896053739494
PBT 38444928333923111143
Adjustment 6882948265798898106103
Changes in Working Capital -54-88-22-111-79-52-53-36-20-46
Tax Paid -7-11-8-7-10-6-5-1-2-6
Cash Flow From Investing Activity -49-39-92-47-52-47-58-4-37-36
Capex -77-72-50-54-55-43-65-11-33-39
Net Investments 00-390000000
Others 2833-374-376-43
Cash Flow From Financing Activity -220-165644-174-63-55-65
Net Proceeds from Shares 000336000000
Net Proceeds from Borrowing 19160-1157-5311110-8
Interest Paid -59-70-78-62-46-53-56-59-64-71
Dividend Paid 0000-10-6-1-1-1-1
Others 397462-102934829-14-114
Net Cash Flow -68411-4-151-7
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)9.7110.9410.993.83.223.652.261.060.943.59
ROCE (%)14.0314.514.389.197.257.746.365.465.758.56
Asset Turnover Ratio1.181.0910.770.730.760.630.560.650.76
PAT to CFO Conversion(x)1.550.793.03-0.40.392.313.129.1313.433.36
Working Capital Days
Receivable Days97115133172163149176201174151
Inventory Days848889113132131161182166143
Payable Days10411514217714712311811711096

HPL Electric & Power Ltd Stock News

HPL Electric & Power Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HPL Electric on 28-Mar-2024 16:01 is ₹318.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of HPL Electric stood at ₹2,033.5.
The latest P/E ratio of HPL Electric as of 28-Mar-2024 16:01 is 52.46.
The latest P/B ratio of HPL Electric as of 28-Mar-2024 16:01 is 2.49.
The 52-week high of HPL Electric is ₹396.4 and the 52-week low is ₹76.27.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HPL Electric is ₹1,360 ( Cr.) .

About HPL Electric & Power Ltd

The company was incorporated as ‘HPL-Socomec Private Limited’ on May 28, 1992 as a private limited company under the Companies Act 1956, with the Registrar of Companies, National Capital Territory of Delhi and Haryana at New Delhi (the RoC). Pursuant to a resolution of its Board of Directors dated January 21, 2010 and a resolution of its shareholders dated February 18, 2010, the name of the company was changed to HPL Electric & Power Private Limited and a fresh certificate of incorporation was issued upon change of name by the RoC on March 10, 2010. Further, pursuant to conversion of the company to a public limited company, the name of the company was changed to ‘HPL Electric & Power Limited’ and a fresh certificate of incorporation consequent upon change of name on conversion to public limited company was issued by the RoC on December 14, 2015.

The company supplies its products through a network of authorized dealers or distributors to institutional, non-institutional and corporate customers. It supplies switchgears, lighting equipment and wires and cables, primarily through its pan-India authorized dealer network. The company’s authorized dealers or distributors further sell its products to over 15,000 retailers in India. In addition, it supplies its products to Power Utilities, which primarily includes supply of meters under direct contractual arrangements to electricity boards and power distribution companies, as well as through project contractors. Further, the company supplies its portfolio of products to developers of residential and commercial building projects, OEMs and to industrial customers through a mix of direct sales and supply through its authorized dealer network.

The company also operates two tool rooms at Gurgaon (Haryana) and Kundli (Haryana), within its R&D Centres, where it has in-house component designing and tool designing facilities. The company currently owns and operates seven manufacturing facilities located across the states of Haryana and Himachal Pradesh, having in-house testing capabilities, including one manufacturing facility owned and operated by its Subsidiary.

Business area of the company

The company is an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, including, metering solutions, switchgears, lighting equipment and wires and cables, catering to consumer and institutional customers in the electrical equipment industry.  It currently manufactures and sells its products under the umbrella brand ‘HPL’, which has been registered in India since 1975.

Major events

  • 1992: Incorporation of the company under the Companies Act 1956 pursuant to a joint venture agreement dated October 24, 1991 between Socomec and Havells Electronics Private Limited (the ‘Havell’s’ trademark is a property of Havell’s Industries (now Havells India Limited) and the company, its Promoters and members of its Promoter Group are not associated in any manner with Havells India Limited or its promoters).
  • 1998: Commencement of production of electronic/static energy meters at the factory situated at Gurgaon Facility I 2008 HPTL Scheme of Amalgamation pursuant to which the company acquired the lighting equipment business Commencement of production and manufacture of lighting equipment at its Sonepat Facility.
  • 2010 Change of name of the company from HPL-Socomec Private Limited to HPL Electric & Power Private Limited.
  • 2010: Commencement of production and manufacture of meters at its Gurgaon Facility II.
  • 2011: Commencement of production and manufacture of switchgears at its Kundli Facility.
  • 2014: Commencement of the production of wires and cables at the factory located at its Gharaunda Facility.
  • 2015: Conversion of the company into a public limited company. 
  • 2015: Commencement of manufacture of LED products.
  • 2015: Settlement with Socomec pursuant to which its promoter and promoter group acquired the entire shareholding of Socomec in the company.
  • 2016: Acquisition of Himachal Energy upon conversion of 15,000,000 optionally convertible debentures of Himachal Energy held by the company, pursuant to which Himachal Energy became a 97.15% owned subsidiary of the company.
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