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Check Before You Invest : HP Telecom India Ltd

BSE: 0 NSE: HPTL ISIN: INE0VA601019
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does HP Telecom India Ltd belong to?
HP Telecom India Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is HP Telecom India Ltd a good quality company?
HP Telecom India 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 HP Telecom India Ltd undervalued or overvalued?
HP Telecom India Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 24.03 24.15
Price to Book 4 4.16
Price to Sales 0.19 0.19
EV to EBITDA 14.43 14.39
Q.4 Is HP Telecom India Ltd a good buy now?
HP Telecom India 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

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.

Q.1 Gross Profit margin of HP Telecom India Ltd?
HP Telecom India Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.1% for FY-2025, which is in line with its 5-year median of 1.1%, indicating stable margins.

Q.2 Operating Profit Margin of HP Telecom India Ltd?
HP Telecom India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.64% for FY-2025, which is in line with its 5-year median of 1.64% indicating stable margins.

Q.3 Net Profit Margin of HP Telecom India Ltd?
HP Telecom India Ltd Net Profit Margin is 0.79% for FY-2025, is in line with its 5-year median of 0.79%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1.1 1.1
Operating Profit Margin (%) 1.64 1.64
Net Profit Margin (%) 0.79 0.79

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of HP Telecom India Ltd?
HP Telecom India Ltd Return on Asset is 4.61%, which is in line with its 5-year historical median of 4.67%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of HP Telecom India Ltd?
HP Telecom India Ltd Return on capital employed is 16.39% for FY-2025, which is in line with its 5-year historical median of 16.39%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of HP Telecom India Ltd?
HP Telecom India Ltd Return on equity is 24.05% for FY-2025, which is in line with its 5-year historical median of 24.05%, indicating the business is making similar use of its shareholders capital.

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

Q.7 Debt to Equity ratio of HP Telecom India Ltd?
HP Telecom India Ltd Debt-to-Equity ratio is 1.76, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of HP Telecom India Ltd?
HP Telecom India Ltd Debt to cash flow from operations is -2.78, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of HP Telecom India Ltd?

Q.1 Promoter shareholding and pledge status of HP Telecom India Ltd?
Promoters hold 73.40% of the HP Telecom India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does HP Telecom India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of HP Telecom India Ltd vs industry peers?
HP Telecom India Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 41.7 17.7
Operating Profit Growth (%) 36.8 16.1
Net Profit Growth (%) 44.4 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 5.85 0.52
ROE (%) 24.05 2.05
ROCE (%) 16.39 3.6
Cash Conversion Cycle (days) 13.92 46

Valuation & price assessment

Q.1 Stock return of HP Telecom India Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 29.68% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 29.7%
Q.2 Valuation ratios of HP Telecom India Ltd vs historical?
The current P/E ratio of 24.03 is in line with than its historical median of 24.15, indicating that the stock is trading near 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 24.03 24.15 33.62
Price to Book 4 4.16 1.57
Price to Sales 0.19 0.19 2.21
EV to EBITDA 14.43 14.39 14.09

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