Check Before You Invest : HBL Engineering Ltd

BSE: 517271 NSE: HBLENGINE ISIN: INE292B01021

| Sector: Automobiles | Industry: Batteries

Snapshot

Q.1 Which industry/sub-sector does HBL Engineering Ltd belong to?

HBL Engineering Ltd belongs to the Automobiles sector, operating specifically within the Batteries segment.

Q.2 Is HBL Engineering Ltd a good quality company?

HBL Engineering Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is HBL Engineering Ltd undervalued or overvalued?

HBL Engineering Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is HBL Engineering Ltd a good buy now?

HBL Engineering Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of HBL Engineering Ltd?

HBL Engineering Ltd revenue growth is -11.9% for FY-2025, which is below its 5-year CAGR of 12.56%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of HBL Engineering Ltd?

HBL Engineering Ltd Return on capital employed is 27.06% for FY-2025, which is above its 5-year historical median of 14.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of HBL Engineering Ltd?

HBL Engineering Ltd Return on Asset is 13.75%, which is above its 5-year historical median of 7.98%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of HBL Engineering Ltd?

HBL Engineering Ltd Return on equity is 20.09% for FY-2025, which is above its 5-year historical median of 10.74%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of HBL Engineering Ltd?

HBL Engineering Ltd Cash conversion cycle is 121 days, below its 5-year historical median of 142 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1	1.07
ROE	20.09	10.74
ROCE	27.06	14.15
Cash Conversion Cycle	121 days	142 days

Q.6 Gross Profit margin of HBL Engineering Ltd?

HBL Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.8% for FY-2025, which is above its 5-year median of 11.8%, indicating increasing margins.

Q.7 Operating Profit Margin of HBL Engineering Ltd?

HBL Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.07% for FY-2025, which is above its 5-year median of 11.06% indicating increasing margins.

Q.8 Net Profit Margin of HBL Engineering Ltd?

HBL Engineering Ltd Net Profit Margin is 13.75% for FY-2025, is above with its 5-year median of 7.32%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	20.8	11.8
Operating Profit Margin	20.07	11.06
Net Profit Margin	13.75	7.32

Q.9 Debt to Equity ratio of HBL Engineering Ltd?

HBL Engineering Ltd Debt-to-Equity ratio is 0.03, which is lower with the industry average of 0.16, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of HBL Engineering Ltd?

HBL Engineering Ltd Debt to cash flow from operations is 0.2, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of HBL Engineering Ltd?

Promoters hold 59.11% of the HBL Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of HBL Engineering Ltd vs industry peers?

HBL Engineering Ltd revenue CAGR is 12.56%, compared to the industry median CAGR of 6.48%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-11.9	6.5
Gross Profit Growth	-4.3	12.6
Operating Profit Growth	-6.9	9.7
Net Profit Growth	1.5	14

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1	1.18
ROE	20.09	10.06
ROCE	27.06	14.08
Cash Conversion Cycle (days)	120.53	72

Valuation & price assessment

Q.1 Stock return of HBL Engineering Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 35.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	35.9%	87.1%	92%	60.9%

Q.3 Valuation ratios of HBL Engineering Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	27.99	43.44	35.25
Price to Book	10.2	8.01	4.58
Price to Sales	7.11	5.19	2.10
EV to EBITDA	18.97	24.11	16.19

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