The ‘Electronic Vehicles’ (EV) industry has gained traction in India in the past couple of years. By 2030, India aims to have a 30 percent share of EVs with the main purpose of reduction of carbon emissions and having a greener future.
Listed below is one multibagger stock associated with the EV industry that one should add to their watchlist:
HBL Power Systems Limited
The stocks of HBL Power Systems Limited opened their trading session on Thursday at Rs 246.40 and currently trade at Rs 260. The company’s scrip witnessed an intra-day high, also recorded as the fresh 52-week high price, of Rs 262.95 exhibiting a gain of around 7 percent compared to the closing price of Rs 245.55 apiece.
Keeping a purview of just three months, the company’s stock has proven to deliver multibagger returns of 150 percent, i.e., if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.50 Lakhs within a period of three months.
Having a quick walkthrough of the financials reported by the company, the primary factors of business such as the operating revenues and after-tax profits rose consistently during the past couple of quarters.
The operating revenues moved up from Rs 402 crores during the March 2023 quarter to Rs 467 crores during the June 2023 quarter, and, the after-tax profits took a shift from Rs 34 crores to Rs 51 crores during the same time horizon.
Due to increased cost pressure, the company witnessed a marginal dip in the net profit margin from 7.50 percent during FY21-22 to 7.09 percent during FY22-23. On a contrasting note, the return on capital employed (RoCE) rose from 12.90 percent to 13.25 percent keeping the timeframe the same.
The main highlight in the ratio analysis comes upon the leverage ratios such as the debt-to-equity ratio and the interest coverage ratio.
The debt-to-equity ratio has seen a consistent reduction over the last five years from 0.28 times during FY18-19 to 0.08 times during FY22-23. During the same time period, the interest coverage ratio took a tremendous shift from 2.15 times to 25.83 times.
The company’s latest shareholding pattern data, as per June 2023 quarter, portray the Promoters holding a 59.1 percent stake, and the Foreign Institutional Investors (FIIs) holding a 2.63 percent stake in the company.
HBL Power Systems Limited is involved in the business of manufacturing a wide range of batteries including Lithium, Silver Zinc, Lead Acid, Railway & Defence Electronics, and many more. Broadly, the company conducts business operations through two segments comprising the “Battery” segment deriving the major revenue, and, the “Electronics” segment.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
