Check Before You Invest : High Energy Batteries (India) Ltd

BSE: 504176 NSE: ISIN: INE783E01023

| Sector: Automobiles | Industry: Batteries

Snapshot

Q.1 Which industry/sub-sector does High Energy Batteries (India) Ltd belong to?

High Energy Batteries (India) Ltd belongs to the Automobiles sector, operating specifically within the Batteries segment.

Q.2 Is High Energy Batteries (India) Ltd a good quality company?

High Energy Batteries (India) Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is High Energy Batteries (India) Ltd undervalued or overvalued?

High Energy Batteries (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is High Energy Batteries (India) Ltd a good buy now?

High Energy Batteries (India) Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd revenue growth is 3.7% for FY-2025, which is below its 5-year CAGR of 5.67%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Return on capital employed is 21.8% for FY-2025, which is below its 5-year historical median of 35.1%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Return on Asset is 13.13%, which is below its 5-year historical median of 18.7%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Return on equity is 16.37% for FY-2025, which is below its 5-year historical median of 31.73%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Cash conversion cycle is 257 days, above its 5-year historical median of 212 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.69	0.83
ROE	16.37	31.73
ROCE	21.8	35.1
Cash Conversion Cycle	257 days	212 days

Q.6 Gross Profit margin of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.7% for FY-2025, which is below its 5-year median of 30.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.45% for FY-2025, which is below its 5-year median of 32.57% indicating decreasing margins.

Q.8 Net Profit Margin of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Net Profit Margin is 18.93% for FY-2025, is below with its 5-year median of 22.08%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	26.7	30.9
Operating Profit Margin	21.45	32.57
Net Profit Margin	18.93	22.08

Q.9 Debt to Equity ratio of High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Debt-to-Equity ratio is 0.11, 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 High Energy Batteries (India) Ltd?

High Energy Batteries (India) Ltd Debt to cash flow from operations is 2.88, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of High Energy Batteries (India) Ltd?

Promoters hold 43.07% of the High Energy Batteries (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of High Energy Batteries (India) Ltd vs industry peers?

High Energy Batteries (India) Ltd revenue CAGR is 5.67%, compared to the industry median CAGR of 6.48%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	3.7	6.5
Gross Profit Growth	-8.3	12.6
Operating Profit Growth	-19.1	9.7
Net Profit Growth	-11.8	14

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.69	1.18
ROE	16.37	10.06
ROCE	21.8	14.08
Cash Conversion Cycle (days)	256.89	72

Valuation & price assessment

Q.1 Stock return of High Energy Batteries (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 37.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	37.5%	32.9%	17.8%	29.1%

Q.3 Valuation ratios of High Energy Batteries (India) Ltd vs historical?

The current P/E is higher 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	31.97	21.84	35.25
Price to Book	5.45	5.80	4.58
Price to Sales	6.35	5.13	2.10
EV to EBITDA	21.77	14.55	16.19

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