The share price of this leading electrical equipment manufacturer surged nearly 18 percent to an intraday high of Rs 554.95 per share after the company received a work order worth Rs 2,100.71 crores.
Share price movement: With a market capitalization of Rs 3,512.09 crores, the shares of HPL Electric & Power Limited surged by 16.45 percent at 11:22 am, trading at Rs 546.20 apiece on Thursday’s morning market hours. The stocks of HPL Limited have generated a multi-bagger return of 223 percent over the past year and 87 percent over the past 6 months.
What happened: According to the HPL Electric & Power Limited stock exchange filings, the firm has announced that they have received a work order worth Rs 2,100.71 crores for the supply of smart meters to their regular leading customers.
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Financials: Reviewing the financials of HPL Electric & Power Limited on a year-on-year basis, the revenues rose by 16 percent from Rs 1,262 crores in FY23 to Rs 1,461 crores in FY24. In the same time frame, the net profits increased from Rs 30 crores to Rs 44 crores, demonstrating a 47 percent increase.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 5.25 percent and a return on capital employed (ROCE) of 16.43 percent. The EPS of the firm grew by 44.5 percent from Rs 4.69 in FY23 to Rs 6.78 in FY24.
Competitive advantage: HPL holds a market share of 20 percent in the domestic smart meters space with an installed capacity of 1.1 crore meters per year.
Order book: HPL Limited currently has a strong order book of over Rs 2,000 crores. 87 percent of its current order books are for smart meters.
Smart Meter Capacity Future plan: HPL aims to reach smart meter capacity of 1.5 crores meters in the next 1 to 2 years, with gradual increases planned.
Industry outlook: IMARC Group forecasts the Indian switchgear market to grow at a 5.85 percent CAGR from 2014 to 2032. Expert Market Research projects the Indian LED lighting market to expand at a 23.22 percent CAGR from 2012 to 2028 and anticipates the Indian wires and cables market to grow at a 14.5 percent CAGR from 2024 to 2032. These projections indicate strong growth potential across these sectors in India over the specified periods.
Shareholding Pattern: As of March 2024, HPL Electric & Power Limited’s shareholding pattern stood at 72.66 percent for promoters, 26.78 percent for the public, 0.24 percent for foreign institutional investors, and 0.32 percent for domestic institutional investors.
About the Company: HPL Electric & Power Limited is a leading electrical equipment manufacturer in India operating for the past 40 years. The company has a significant presence across five key product verticals of electric equipment – metering solutions, modular switches, switchgear, LED lighting, and wires and cables.
It caters to a wide spectrum of customer segments, such as power utilities, government agencies, and retail and institutional customers, with a strong brand recall as a trusted electrical brand.
Written by Zahal
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