Check Before You Invest : HBL Engineering Ltd

Q: 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: Is HBL Engineering Ltd a good quality company?

HBL Engineering Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is HBL Engineering Ltd undervalued or overvalued?

HBL Engineering Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 27.51, Historic Median: 41.83. Price to Book, Current: 10.03, Historic Median: 8.21. Price to Sales, Current: 6.99, Historic Median: 5.36. EV to EBITDA, Current: 18.64, Historic Median: 24.01

Q: 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

Q: 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: 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: 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: Net Profit Margin of HBL Engineering Ltd?

HBL Engineering Ltd Net Profit Margin is 13.75% for FY-2025, is above its 5-year median of 7.32%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 20.8, Historic Median: 11.8. Operating Profit Margin (%), Current: 20.07, Historic Median: 11.06. Net Profit Margin (%), Current: 13.75, Historic Median: 7.32

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is HBL Engineering Ltd undervalued or overvalued?

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

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	27.51	41.83
Price to Book	10.03	8.21
Price to Sales	6.99	5.36
EV to EBITDA	18.64	24.01

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 Net Profit Margin of HBL Engineering Ltd?

HBL Engineering Ltd Net Profit Margin is 13.75% for FY-2025, is above 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	1	1.07
ROE (%)	20.09	10.74
ROCE (%)	27.06	14.15
Cash Conversion Cycle	121 days	142 days

C: How much debt does the business have and is it at a sustainable level?

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

HBL Engineering Ltd Debt-to-Equity ratio is 0.03, which is lower the industry average of 0.06, 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

D: Promoter shareholding and pledge status of HBL Engineering Ltd?

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)

E: How does HBL Engineering Ltd performance compare with that of its Peers?

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 5.68%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-11.9	5.7
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 (x)	1	1.07
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 37.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	37.2%	82%	95.7%	39.4%

Q.2 Valuation ratios of HBL Engineering Ltd vs historical?

The current P/E ratio of 27.51 is lower than its historical median of 41.83, indicating that the stock is trading below its historical average valuation.

Q.3 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	27.51	41.83	35.14
Price to Book	10.03	8.21	4.58
Price to Sales	6.99	5.36	2.09
EV to EBITDA	18.64	24.01	16.12

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Check Before You Invest : HBL Engineering Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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