HPL Electric & Power Limited

Industrials — Electrical Equipment & Parts · NSE

₹260.50+₹0.25 (+0.10%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of HPL Electric & Power Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

HPL Electric & Power Limited manufactures and sells electric equipment under the HPL brand in India and internationally. The company operates through two segments: Metering, Systems & Services and Consumer, Industrial & Services.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees1,438

Annual revenue₹1,811 Cr

How does it make money?

Turns over ₹1,811 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 1,438 employees supports ₹1.26 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.26 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS 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 17.8% 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 ROE17.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 17.3% and earnings to grow about 43.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.3%

Est. earnings growth+43.2%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +43% while net margin moved +110% 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+43%

Margin effect+110%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 9.1% is weak
✓ ROE has improved by 5.3 points over the period

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.4x

3Y Median

52.8x

40 monthly readings · mean 52.8x · range 17.6x–129.0x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 65% below its 3y median of 52.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 79% below the peer median of 88.8x.

vs. its own history

Cheap

52.8x median over 40 months · -65%

vs. sector peers

Cheap

88.8x median of 3 peers · -79%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.8x

PEG

0.41

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 11.8% to 15.0% over 3 years.
Return on equity is rising
ROE has improved from 3.8% to 9.1%.
Return on capital is rising
ROCE has improved from 12.6% to 17.8%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 26% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.8% to 15.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 65% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 79% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

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

1Revenue growth stays above 10% a year✓ 12.8% CAGR
Latest reported year was 34.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹10 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹1,675 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.67x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.18

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

17.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.75x

Moderate

Moderate leverage

Revenue Growth (YoY)

34.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1.0%

Modest

Slow profit growth

Dividend Yield

0.38%

Modest

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

Free Cash Flow

₹10 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

13.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.8%

Average

Average margins

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.77

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

269.0 / 293.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,262 Cr	₹1,461 Cr	₹1,700 Cr	₹1,811 Cr	+12.8%
EBITDA	₹149 Cr	₹182 Cr	₹245 Cr	₹272 Cr	+22.2%
EBITDA Margin	11.8%	12.5%	14.4%	15.0%	—
PAT (Net Profit)	₹30 Cr	₹44 Cr	₹94 Cr	₹91 Cr	+44.5%
EPS	₹4.69	₹6.78	₹14.58	₹14.15	+44.5%
ROE	3.8%	5.3%	10.2%	9.1%	—
ROCE	12.6%	14.9%	20.8%	17.8%	—
Total Debt	₹600 Cr	₹627 Cr	₹639 Cr	₹755 Cr	+8.0%
Free Cash Flow	₹59 Cr	₹57 Cr	₹59 Cr	₹10 Cr	-44.2%

🟢 Revenue has grown at 12.8% a year over 3 years.

🟢 EBITDA has grown at 22.2% a year over 3 years.

🟢 EBITDA Margin has risen from 11.8% to 15.0% over 3 years (+3.2 pts).

🟢 PAT (Net Profit) has grown at 44.5% a year over 3 years.

🟢 EPS has grown at 44.5% a year over 3 years.

🟢 ROE has risen from 3.8% to 9.1% over 3 years (+5.3 pts).

🟢 ROCE has risen from 12.6% to 17.8% over 3 years (+5.2 pts).

🔴 Total Debt has grown at 8.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 44.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,398 Cr

Total Liabilities

₹1,396 Cr

Cash & Equivalents

₹33 Cr

Operating Cash Flow

₹226 Cr

Capex

-₹216 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

72.7%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

17 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹380

+45.9% vs CMP

Target Range

₹380 – ₹380

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

HPL Electric & Power Share Price

Upstox, 16 Oct

HPL Electric & Power Share Price Near Low; Sector Check

Univest, 08 Oct

Compare with

Equitymaster, 15 Oct

HPL Forecast — Price Target — Prediction for 2027

TradingView, 30 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

There's A Lot To Like About HPL Electric & Power's (NSE:HPL) Upcoming ₹1.00 Dividend

Simply Wall Street, 13 SeptCapital return

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

HPL Electric & Power Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Valuation

MiddlingProfitability · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑