During Tuesday’s trading session, the shares of one of the leading manufacturers of electrical and power distribution equipments surged by around 7.1 percent to Rs. 538 on BSE, after reporting Q2 FY25 results with a rise in net profit by 27 percent QoQ and 96.4 percent YoY.
With a market cap of Rs. 120 crores, at 03:24 p.m., the shares of HPL Electric & Power Limited trading in the green at Rs. 525.65, up by nearly 4.6 percent, as compared to its previous closing price of Rs. 502.45.
What’s the news:
The fluctuations in the share prices were observed after HPL Electric & Power Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Tuesday during market hours.
For Q2 FY25, HPL Electric reported revenue from operations of Rs. 422.3 crores, reflecting a marginal growth of around 7.5 percent QoQ from Rs. 393 crores in Q1 FY25, and increased by about 20.5 percent YoY from Rs. 350.5 crores in Q2 FY24.
The company’s net profit for Q2 FY25 grew to Rs. 21.6 crores, representing a rise of around 27 percent QoQ from Rs. 17 crores in Q1 FY25, and a year-on-year growth of nearly 96.4 percent from Rs. 11 crores in Q2 FY24.
Recent Developments:
On 8th July, HPL Electric entered into a Memorandum of Understanding (MoU) with Guangxi Ramway Technology Co. Ltd, China, for the local manufacturing under phased Manufacturing/technical Tie-up/Procurement for the assembly of Relay/Latching Relays in India.
On 11th July, the company secured work orders totalling Rs. 2,100.71 crores for the supply of smart meters. Subsequently, on September 12th, HPL Electric & Power Limited received additional work orders valued at Rs. 143.77 crores for the supply of both Smart Meters and Conventional Meters.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 72.66 percent stake in the company, Foreign Institutional Investors (FII) hold a 0.51 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 26.59 percent and 0.23 percent stake in HPL Electric, respectively.
Stock Performance:
The stock has delivered multibagger returns of nearly 150.5 percent in one year, while around 35.2 percent of positive returns in the last six months. So far in 2024, the shares of HPL Electric have given positive returns of about 92 percent.
About the company:
HPL Electric & Power Limited is one of the leading manufacturers of electrical and power distribution equipments. Its products range from industrial and domestic circuit protection switchgears, cables, Energy Saving Meters, LED lamps and luminaries, and modular switches covering the entire range of household, commercial and industrial electrical needs.
As of Q1 FY25, the company is a market leader in electric meters and on-load changeover switches, holding a 50 percent share in the domestic on-load changeover switch market, a 20 percent share in the domestic electric meter market, and a 5 percent share in the low-voltage switchgear market.
Written by Shivani Singh
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