Synopsis:
Hind Rectifiers jumped sharply after they acquired BeLink Solutions, a company based in France, for Rs 20.4 crore. Through this transaction, Hirect obtains a manufacturing base in Europe, six automated lines, and sales visibility of Rs 135 crore and order visibility of Rs 104 crore for 2026.
The shares of this leading manufacturer of Power Semiconductors, Power Electronic Equipment, and Railway Transportation Systems are in focus after it made a key move in the European Union that is expected to contribute significantly to its business.
With a market capitalization of Rs 2,967 crore, the shares of Hind Rectifiers Ltd made a day high of Rs 1,726.65 per share, up by 5 percent (upper circuit) from its previous day closing price of Rs 1,644.45 per share. Over the past five years, the stock has delivered a multibagger return of 1,240 percent, outperforming the NIFTY 50’s return of 120 percent.
About the Announcement
Hind Rectifiers Ltd (Hirect), through a stock exchange filing, announced that it has acquired BeLink Solutions, a French company that has been working in robotics, electronics manufacturing services (EMS), and research and development for 38 years. This decision will allow Hirect to have a strategically located production base in Europe, thus facilitating the company to strengthen its presence worldwide.
According to the agreement, Hirect (by means of a new subsidiary) will acquire BeLink’s business and assets for EUR 1 million in cash (Rs 10.4 crore), which will be internally financed 100 percent.
Besides, EUR 2 million (Rs 20.4 crore) will be invested in the subsidiary, out of which, EUR 1 million will be preference shares by Hirect and EUR 1 million will be equity, with the shareholding of 66 percent by Hirect and 34 percent by the promoter group companies.
Moreover, the takeover of BeLink’s advanced production and testing infrastructure integrates with the acquisition of the firm’s plant & machinery, technology, intellectual property rights, customer contracts, and purchase orders.
The company holds six production lines that are fully automated and has advanced testing equipment, thus enabling Hirect to supply customer requirements from the domestic market and overseas.
BeLink is targeting to achieve EUR 13 million (Rs 135 crore) turnover in 2025 and already has EUR 10 million (Rs 104 crore) worth of orders for 2026, which gives strong revenue visibility.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 215 crore, up by 58 percent from Rs 136 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 16 percent from Rs 185 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 86 percent to Rs 13 crore in Q1 FY26 as compared to Rs 7 crore in Q1 FY25. Additionally, on a QoQ basis, it grew by 30 percent from Rs 10 crore.
The company has delivered a superior ROE and ROCE of 25.63 percent and 21.55 percent respectively, and is currently trading at a very high P/E of 69x as compared to its industry average of 37.44x.
Hind Rectifiers Ltd (Hirect) is a company that designs, manufactures, and sells power semiconductors, electronic devices, and railway systems to both the domestic and foreign markets. The company is engaged in the manufacture of various types of equipment, such as transformers, propulsion systems, converters, battery chargers, rectifiers, traction motors, switchboards, safety devices, and HVAC systems for railways.
The company is also involved in the production of various types of industrial equipment, such as electrostatic precipitators, rectifiers, harmonic filters, and DC reactors. Besides products, it also offers repair, maintenance, installation, and commissioning services.
Written by Satyajeet Mukherjee
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