High Energy Batteries (India) Limited

Industrials — Aerospace & Defense · BSE

₹548.80−₹2.90 (−0.53%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of High Energy Batteries (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

High Energy Batteries (India) Limited manufactures batteries for use in army, navy, air force, and launch vehicles in India and internationally. It operates in two segments, Aerospace, Naval and Power System Batteries; and Lead Acid Batteries.

IndustryAerospace & Defense

SectorIndustrials

Employees125

Annual revenue₹83 Cr

How does it make money?

Turns over ₹83 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 125 employees supports ₹66.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹66.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -10% while net margin moved -16% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-10%

Margin effect-16%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.5% a year
✗ Profit has declined at 9.1% a year
✗ Latest-year revenue growth of -40.6% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

38.4x

3Y Median

32.2x

40 monthly readings · mean 31.6x · range 21.9x–41.7x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 19% above its 3y median of 32.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 57% below the peer median of 88.8x.

vs. its own history

Fair

32.2x median over 40 months · +19%

vs. sector peers

Cheap

88.8x median of 3 peers · -57%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

20.8x

PEG

95.18

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 45% over 3 years.
Cash generation is improving
Free cash flow is up 64% over 3 years.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 27.9% to 13.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 39.0% to 19.1% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.0 points, from 36.1% to 29.1%.
🟡Profit is decliningFinancial
Net profit is down 25% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 17% against revenue up -10% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 45% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 57% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹11 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 36.1% to 29.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 17% against revenue up -10%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 27.9% to 13.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 27%✓ 29.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 16%✓ 19.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 32.2x✓ 38.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹492 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.4x

Fair

Fairly valued against the generic band

P/B Ratio

4.41x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.28

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

19.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

-40.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

0.4%

Modest

Slow profit growth

Dividend Yield

0.55%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-27.8%

Weak

Thin margins leave little room for error

Net Margin

16.4%

Good

Strong bottom-line conversion

Current Ratio

3.65

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

576.5 / 582.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

18.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹93 Cr	₹77 Cr	₹81 Cr	₹83 Cr	-3.5%
EBITDA	₹33 Cr	₹26 Cr	₹24 Cr	₹24 Cr	-10.2%
EBITDA Margin	36.1%	33.5%	29.4%	29.1%	—
PAT (Net Profit)	₹20 Cr	₹17 Cr	₹15 Cr	₹15 Cr	-9.1%
EPS	₹22.86	₹19.14	₹17.1	₹17.17	-9.1%
ROE	27.9%	19.6%	15.4%	13.8%	—
ROCE	39.0%	26.7%	20.8%	19.1%	—
Total Debt	₹21 Cr	₹5 Cr	₹11 Cr	₹12 Cr	-17.9%
Free Cash Flow	₹6 Cr	₹22 Cr	₹1 Cr	₹11 Cr	+18.0%

🔴 Revenue has shrunk at 3.5% a year over 3 years.

🔴 EBITDA has shrunk at 10.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 36.1% to 29.1% over 3 years (-7.0 pts).

🔴 PAT (Net Profit) has shrunk at 9.1% a year over 3 years.

🔴 EPS has shrunk at 9.1% a year over 3 years.

🔴 ROE has fallen from 27.9% to 13.8% over 3 years (-14.1 pts).

🔴 ROCE has fallen from 39.0% to 19.1% over 3 years (-20.0 pts).

🟢 Total Debt has shrunk at 17.9% a year over 3 years.

🟢 Free Cash Flow has grown at 18.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹138 Cr

Total Liabilities

₹26 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

6.0%

Insider Holding

56.9%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

12 Jun 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 negative3 general

High Energy Batteries FY26 Net Profit Rises to ₹1,539.18 Lakhs; ₹3 Dividend Declared

scanx.trade, 12 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

High Energy Batteries (India) Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Best Battery Stocks in India 2026

Groww, 16 Jul

High Energy Batteries Q4 Profit Falls 23.9% to ₹76M Amidst Revenue Slump

Sahi, 12 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

High Energy Batteries (India) standalone net profit declines 24.02% in the March 2026 quarter

Business Standard, 13 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

High Energy Batteries (India) Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

Revenue growth is negative (-40.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑