HPL Electric gains over 2% on securing new order worth Rs 144 crore

HPL Electric it had hit 52-week high of Rs 694 apiece on August 22, 2024

Shares of HPL Electric surged over 2 percent to Rs 613 per share on September 13 after it secured new order worth Rs 144 crore for supply of smart meters and conventional meters. The company is yet to share further details about the order, such as the timeline or location.

So far this year, the stock of this electrical equipment maker more than doubled or zoomed over 140 percent, beating benchmark Nifty 50's 15 percent surge. Earlier, it had hit 52-week high of Rs 694 apiece on August 22, 2024.

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Earlier in July, the company won a letter of award for smart meters. The order was valued at Rs 2,000.71 crore and had been received from HPL Electric's regular leading customers.

HPL Electric & Power, a leading electrical equipment manufacturer, has established a strong foothold over the past 40 years, specialising in five key product categories: metering solutions, modular switches, switchgears, LED lighting, and wires and cables.

HPL operates seven manufacturing facilities and two research and development (R&D) centers in India, bolstered by an efficient supply chain and a vast distribution network of over 900 dealers and 45,000 retailers. The company is ambitiously targeting an expansion to 100,000 retailers by March 2025.

In the recently concluded June quarter, HPL Electric's net sales surged 25 percent year-on-year (YoY) to Rs 390 crore, while net profit rose 159 percent YoY to Rs 16 crore. At the operational level, the company's EBITDA increased by 42 percent YoY to Rs 54 crore in Q1FY25.

Currently, only 1 brokerage house covers HPL electric stock, with a 'buy' rating. At current market price, the stock has been trading at 4.5x price-to-book ratio, significantly lower than other listed peers like Crompton Greaves at 9x PB ratio and Havells India at 16.8x PB ratio.

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