This smart meter stock is engaged in manufacturing and dealing in a wide range of electrical equipment, including metering solutions, switchgears, and LED lighting, and is in focus after announcing plans to double its retailer network from 45,000 to 1 lakh retailers by the financial year 2025.
Stock Price Movement:
With a market capitalization of Rs. 2,592.27 crores, the share of HPL Electric and Power Limited has reached an intraday high of Rs. 437.95 per equity share, declined nearly around 4.8 percent from its previous day’s close price of Rs. 423.70 and the stock has closed at Rs. 403.15 per equity share in the Friday’s session.
Company Overview:
HPL Electric & Power Limited was established in 1992 and is a leading Indian manufacturer of electrical equipment. The company offers a diverse range of products, including meters, switch gears, LED lighting, and solar solutions.
Future Plans and Network Expansion:
The company is accelerating growth in its consumer business by expanding distribution, enhancing brand presence, and launching innovative products. With a short working capital cycle of three months, increasing the consumer segment’s share will boost free cash flow and ROCE. The company is introducing advanced LED flood lights, modular LED downlights, and upgraded switchgear solutions for industrial and domestic use.
The company is also expanding its retailer network, aiming to increase touchpoints by over three times, reaching 1,00,000 retailers by March 2025 from the current 45,000. This expansion is driven by dealer meetings, retailer interactions, and technical seminars, ensuring broader market reach and stronger customer engagement.
Market Share:
The company leads the market with a 50 percent share in on-load changeover switches and a strong 20 percent share in electric meters. It also holds a 5 percent share in low-voltage switchgear and is the 5th largest manufacturer of LED lighting products, showcasing its presence in the competitive electrical equipment sector, particularly in smart metering and switch solutions.
Production Capacity:
HPL Electric and Power has a strong production capacity in manufacturing 1.1 crore electronic meters, 2.6 crore lighting equipment units, and 1.6 crore switchgear units annually. Additionally, its wires and cables segment produces 19.4 crore meters per year, highlighting its extensive manufacturing capabilities in the electrical industry.
Order Book:
HPL Electric and Power Limited’s order book stands at over Rs. 3,400 crore as of February 10, 2024, with 95 percent coming from Metering, Systems & Services, reflecting strong market demand and a robust pipeline of projects.
Business Operation:
The company operates 7 state-of-the-art manufacturing facilities and 2 R&D centers, supported by more than 90 branch offices and 21 warehouses across India.
The company workforce contains more than 1,100 employees, including more than 100 engineers dedicated to R&D and more than 600 professionals focused on brand building. HPL’s robust distribution network includes more than 900 dealers and distributors, reaching more than 75,000 retailers in India.
Recent quarter results:
HPL Electric and Power Limited’s revenue has increased from Rs. 366 crore in Q3 FY24 to Rs. 392 crore in Q3 FY25, which has grown by 7.10 percent. The net profit has also grown by 50 percent from Rs. 12 crore in Q3 FY24 to Rs. 18 crore in Q3 FY25.
Its revenue and net profit have grown at a CAGR of 18.64 percent and 63.86 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 11.1 percent and 5.45 percent, respectively. The debt-to-equity ratio of the company is to be 0.75x and EPS is to be Rs. 10.9.
Written By – Nikhil Naik
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