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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 quality company, based on a 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 neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 12.6% , 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 with its 5 year median of 7.32%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 20.8 11.8
Operating Profit Margin 20.07 11.06
Net Profit Margin 13.75 7.32
Q.5 Return on Asset of HBL Engineering Ltd?
HBL Engineering Ltd Return on Asset is 13.75(x), which is above its 5 year historical median of 7.98(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of HBL Engineering Ltd?
HBL Engineering Ltd Return on equity is 20.09% for FY-2025 , which is above its historical median of 10.74%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of HBL Engineering Ltd?
HBL Engineering Ltd Cash conversion cycle is 121 , below its historical median of 142 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1 1.07
ROE 20.09 10.74
ROCE 27.06 14.15
Cash Conversion Cycle 121 142
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 0.06 , 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, indicating the business is able to service its debt comfortably.

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 5.92% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,946.1 404.8
Gross Profit 404.8 25.2
Operating Profit 390 29
Net Profit 268 18
Operating Efficiency
Current Level Industry Median
Asset Turnover 1 1.07
ROE 20.09 10.06
ROCE 27.06 14.08
Cash Conversion Cycle 120.53 72

Valuation & price assessment

Q.1 Stock return of HBL Engineering Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 34.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 34.9% 87.6% 95.9% 50.3%
Q.3 Valuation ratios of HBL Engineering Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 25.6 0.00 22.09
Price to Book 9.33 0.61 4.54
Price to Sales 6.5 0.50 2.16
EV to EBITDA 17.34 7.32 16.38

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