Buy Hind Rectifiers; target of Rs 65: Sunidhi Securities

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26 Aug, 2025 12:21

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Sunidhi Securities is bullish on Hind Rectifiers and has recommended buy rating on the stock with a target of Rs 65 in its April 26, 2013 research report.

“Hind Rectifiers (Hirect) founded in 1958, in collaboration with Westinghouse, Brake & Signal, UK has long standing tradition and experience in developing, designing, manufacturing and marketing power semiconductors, power electronic equipment and Railway transportation equipment. Hirect has entered into technical tie-up with global leaders for sourcing state of art technologies. Its technical collaborators are: Transtechnik, Germany for manufacturing inverters and converters for railway application and Infineon Technologies, Germany for IGBT prime stacks.  Hirect is a leading manufacturer of rectifier equipment and semi-conductor devices such as diodes, thyristers, invertors and alternators. It also manufactures a wide range of products used for railways, AC electric locomotives and AC electrical multiple units. At present the major manufacturing activities are concentrated at the Mumbai plant which is conveniently located at Bhandup at the distance of 15-16 km. from the Mumbai Airport.”

“During Q3FY13, net loss of Rs 14 lakh in Q2FY12 transformed into a net profit of Rs 2.5 crore on 92 percent higher sales of Rs 32.6 crore (YoY). OPM & NPM stood 12.3 percent and 7.7 percent respectively against 5.0 percent and -0.08 percent in Q3FY12.  During 9MFY13, net profit rose 154.2 percent to Rs 6.1 crore on 49.4 percent higher sales of Rs 92.3 crore (YoY). OPM & NPM stood 10.8 percent and 6.6 percent respectively against 9.4 percent and 3.9 percent in Q3FY12. 9MFY13 EPS works out to Rs 4.0 Vs Rs 1.6 in 9MFY12. Hirect has established considerable expertise in its area of activity and caters to wide range of application such as electronics, railway transportation, power, telecommunications and core sector industries like steel, non-ferrous metals, cement, chemicals, metal finishing and a host of other industries. The modernization of the railways has been given some importance with special emphasis on safety. With regard to urban travel, which is an increasingly critical portion of rail travel in the country, the progress in Kolkata metro and the introduction of AC coaches in the suburban trains of Mumbai is a welcome move. Overall, we see the railway budget 2013-14 has been more positive for Hirect as compared to the previous year.”

“Hirect has introduced new products in the category of transformer, converters, rectifiers and controllers. The management expects a robust growth in sales from its new products from FY14 onwards.The flexibility and scalability of Hirect’s existing production and distribution network, low cost manufacturing base, installation of new equipment, strong brand position, introduction of new high margin based products, sustained focus on customer value chain and penetration into various domestic and international market give strong visibility to revenue and profitability going forward. Hirect fares better in Q4 due to higher margin based business in the last quarter. At CMP of Rs 50, the share is trading at a P/E of 6.0x on FY13E and 4.6x on FY143E. We recommend BUY on the stock with a price target of Rs 65 in the medium term,” says Sunidhi Securities research report.

Non-Institutions holding more than 90% in Indian cos

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