Shares of this multibagger small-cap stock associated with the ‘electrical equipment’ industry hit its 10 percent upper circuit on Tuesday after the company successfully launched a new product in the Middle East, Africa, and other regions. In the past month, the company’s stock gained nearly 20 percent for its holders.
With a market capitalization of Rs 2,339.89 crores, the stocks of HPL Electric & Power Limited opened their trading hour on Tuesday at Rs 338 and currently are locked in their 10 percent upper circuit recorded at Rs 363.90 apiece.
Such sharp share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about the launch of a new product under its “Consumer Electricals” segment on Monday, 22nd April 2024.
The small-cap company launched “HPL Fans” in Africa, the Middle East, and the SAARC countries. The company’s product will cater to both, Domestic as well as International markets.
During the recent financial quarters, the company’s prime indicators of business, viz, its operating revenues as well as after-tax profits, showed a stellar financial performance with the former increasing from Rs 350 crores during Q2FY24 to Rs 366 crores during Q3FY24, and the latter, during the same period, rose from Rs 11 crores to Rs 12 crores.
As per the latest presentations, the company’s order book is continuously growing and stands at more than Rs 2,400 crores.
Moreover, the company has made strategic investments for various purposes, including R&D, capacity expansion, and channel network expansion. The company has an aspiration of acquiring a market share of 22 to 25 percent in the ‘Energy Meter’ market.
Keeping a purview of the last one year, the company’s stock delivered multibagger returns of approximately 300 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 4 lakhs.
HPL Electric & Power Limited is an India-based company engaged in the business of manufacturing electric equipment across key verticals including switchgear, metering, lighting & electronics, and cables. Deriving a majority of revenue from domestic operations, the product portfolio of the company includes smart meters, digital panel meters, prepaid metering solutions, etc.
Written by Amit Madnani
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