During Friday’s trading session, the shares of one of the leading electrical and power distribution equipment manufacturers surged 2.5 percent to Rs. 613.8 on BSE, after securing an order worth Rs. 143.77 crores for the supply of smart meters.
With a market capitalisation of Rs. 3,878.6 crores, at 10:27 a.m., the shares of HPL Electric & Power Limited were trading in the green at Rs. 603.2, up by nearly 0.73 percent, as against its previous closing price of Rs. 598.8.
What’s the News:
According to the latest regulatory filings with the stock exchanges, HPL Electric & Power Limited received work orders valued at Rs. 143.77 crores.
The order is received from the company’s regular leading customers for the supply of Smart Meters & Conventional Meters in the normal course of business, which is to be executed as per the terms & conditions of Letter of Award (LoA)/work orders.
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Previous Orders:
On 8th July, HPL Electric & Power Limited entered into a Memorandum of Understanding (MoU) with Guangxi Ramway Technology Co. Ltd, China, for local manufacturing under phased Manufacturing/technical Tie-up/ Procurement for the assembly of Relay/Latching Relays in India.
On 11th July, the company received work orders worth Rs. 2,100.7 crores from its regular leading customers for the supply of smart meters.
Financials:
The company experienced a significant increase in its revenue from operations, showing a year-on-year rise of around 22.4 percent from Rs. 321 crores in Q1 FY24 to Rs. 393 crores in Q1 FY25, driven by positive secular momentum in Metering & Systems and Consumer, Industrial & Services product segments.
Similarly, its net profit increased during the same period from Rs. 6.94 crores to Rs. 17 crores, representing a growth of nearly 145.5 percent YoY. This significant increase in profitability was the result of the successful execution of the company’s growth strategies and overall automation and operational improvements.
HPL Electrics saw a significant EBITDA rise of 40.2 percent YoY to Rs. 56.13 crores, with EBITDA margins expanding by 180 basis points to 14.29 percent from 12.48 percent. This strong performance was the outcome of strong operational efficiency and effective cost management.
As of Q1 FY25, the company has a 50 percent market share in the domestic on-load change-over switches market, a 20 percent market share in the domestic electric metres market, and a 5 percent market share in the low-voltage switchgear market.
Stock Performance
In the previous six months, the stock has delivered multibagger returns of nearly 108.3 percent, as well as around 164.7 percent returns in one year. So far in 2024, the shares of HPL Electric have given about 120.5 percent of multibagger returns.
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About the Company:
HPL Electric & Power Limited is an electric equipment manufacturing company in India, producing a wide range of electric equipment, including metering solutions, switchgear, lighting equipment, wires, and cables, catering to consumer and institutional customers covering the entire range of household, commercial and industrial electrical needs.
Written by Shivani Singh
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