HBL Engineering Limited (HBLENGINE) AI Stock Analysis

• Market Cap: ₹202.57B
• Dividend Yield: 0.11%
• Average Volume (3M): 101.38K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.68
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 2,152
• Sector: Energy
• Sector Strength: 52
• Industry: Electrical Equipment & Parts
• EPS (TTM): 7.96
• Shares Outstanding: 277,194,950
• 10 Day Avg. Volume: 142,427
• 30 Day Avg. Volume: 101,384
• PEG Ratio: 0.00
• Price to Book (P/B): 9.57
• Price to Sales (P/S): 7.26
• P/FCF Ratio: 12.99K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ₹783.00 ▲(1.25% Upside)
• Action: N/A Date: 02/11/26
• Date: Action: N/A 02/11/26

The score is held back primarily by FY2025 cash-flow deterioration and the revenue decline despite reported profitability, which raises earnings-quality risk. Technical signals are also weak with negative MACD and price below key moving averages. A strong, low-debt balance sheet and a modest dividend support the score but do not fully offset the cash conversion concerns.

Positive Factors

Low leverage / strong balance sheet

Very low debt (≈0.05x equity) and expanding equity/assets provide persistent financial flexibility. This reduces refinancing and solvency risk, supports capex or working-capital needs without external borrowing, and helps the company weather cyclical dips over the next 2–6 months.

Multi-year revenue growth trend

A consistent multi-year growth trajectory (2020–2024) implies established market traction and repeatable sales channels. Even with a recent dip, the historical expansion supports recovery potential and indicates underlying demand and competitive positioning that can reassert over a medium-term horizon.

Healthy returns and profitability

ROE near 18.7% signals efficient use of capital and enduring operating profitability. Strong returns provide internal funding for growth, sustain the modest dividend policy, and give management flexibility to invest or allocate capital without relying heavily on external financing over the coming months.

Negative Factors

Severe cash-flow deterioration

A dramatic collapse in operating and free cash flow undermines the company's ability to self-fund operations, capex, or dividends and raises the risk of short-term liquidity strain. Persistent weak cash conversion would constrain strategic flexibility and heighten working-capital pressure.

FY2025 revenue decline

A 14.5% revenue drop signals possible demand loss, pricing pressure, or contract timing issues. Reduced top-line scale weakens operating leverage, can pressure margins and investment plans, and may indicate structural customer or product challenges that persist beyond a single quarter.

Gross profit compression & earnings-quality risk

Sharp gross-profit compression despite stable net income implies mix shifts, one-offs, or margin-recognition issues. Combined with weak cash conversion, this raises earnings-quality concerns: reported profits may not convert to durable cash flows, risking future margin sustainability and investor confidence.

HBL Engineering Limited Business Overview & Revenue Model

Company Description

HBL Engineering Limited manufactures and sells batteries and other products in India and internationally. It operates through Industrial batteries, Defense and Aviation batteries, and Electronics segments. The company offers lead acid batteries, nickel-cadmium batteries, silver zinc batteries, defence, and lithium batteries. It also provides rail signaling electronics, electronic fuzes for ammunition, train collision avoidance systems, train management system, and electric drive trains. The company serves system integrators, EPC's, railway, aviation, and defense companies, as well as government sector. The company was formerly HBL Power Systems Limited and changed its name to HBL Engineering Limited in November 2024. The company was founded in 1977 and is headquartered in Hyderabad, India. HBL Engineering Limited is a subsidiary of Aluru Family Private Trust.

How the Company Makes Money

HBL Engineering Limited Financial Statement Overview

Summary

Balance sheet strength is a major positive (very low leverage and healthy ROE), but FY2025 raises material quality concerns: revenue fell -14.5% and operating/free cash flow collapsed versus FY2024 despite resilient net income, implying weak cash conversion and potential working-capital strain.

Income Statement

Revenue has grown strongly over the multi-year period (2020–2024), but the latest annual report (FY2025) shows a notable revenue decline (-14.5%). Profitability is mixed: FY2025 shows solid operating and net profitability (about 19.5% operating margin and 14.2% net margin), but gross profit is extremely low in FY2025 versus prior years, suggesting unfavorable cost mix and/or potential one-off accounting/contract impacts. Net income has been relatively resilient around ~2.8B in FY2024–FY2025 despite the revenue drop, which is a positive, but the sharp gross profit compression raises quality and sustainability questions.

Balance Sheet

The balance sheet looks conservative with low leverage: FY2025 debt is ~0.05x equity, indicating ample balance-sheet flexibility. Equity and assets have expanded meaningfully versus earlier years, supporting scale-up without heavy borrowing. Returns on equity are healthy (~18.7% in FY2025), signaling strong profitability relative to the capital base. The main watch-out is that earnings quality (given the FY2025 margin inconsistencies) could matter more than leverage, but overall financial risk from debt appears low.

Cash Flow

Cash generation deteriorated sharply in FY2025: operating cash flow collapsed to ~28.8M from ~2.73B in FY2024, and free cash flow fell to ~10.9M from ~2.20B. Free cash flow growth is deeply negative (-97.4%), and cash conversion is weak versus reported profits (operating cash flow is a very small fraction of net income in FY2025). While prior years showed the ability to generate solid free cash flow, the latest year signals either working-capital strain, higher cash outflows, or timing/collection issues—this is the key financial concern in the dataset.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	22.86B	19.54B	22.33B	13.69B	12.13B	8.94B
Gross Profit	10.20B	62.86M	8.74B	5.36B	3.19B	2.16B
EBITDA	4.67B	4.25B	4.23B	1.70B	1.64B	716.04M
Net Income	3.09B	2.77B	2.81B	986.53M	939.02M	137.27M
Balance Sheet
Total Assets	0.00	19.79B	16.54B	12.94B	11.33B	10.36B
Cash, Cash Equivalents and Short-Term Investments	2.35B	2.03B	2.29B	1.56B	896.00M	531.04M
Total Debt	0.00	742.95M	674.62M	860.21M	626.07M	699.43M
Total Liabilities	-12.20B	4.97B	4.34B	3.43B	2.67B	2.54B
Stockholders Equity	12.20B	14.83B	12.21B	9.51B	8.66B	7.82B
Cash Flow
Free Cash Flow	417.15M	10.92M	2.20B	585.59M	-56.59M	823.81M
Operating Cash Flow	417.15M	28.78M	2.73B	1.22B	624.69M	1.19B
Investing Cash Flow	0.00	-38.72M	-1.39B	-497.13M	-167.67M	-295.63M
Financing Cash Flow	0.00	-2.52M	-342.71M	-95.56M	223.22M	-1.04B

HBL Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARE&M	77 Outperform	₹156.25B	21.03	―	6.72%	5.90%	-8.73%
KPIGREEN	72 Outperform	₹79.89B	18.57	―	0.20%	70.67%	59.54%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ACMESOLAR	59 Neutral	₹139.92B	28.70	―	―	―	―
HBLENGINE	51 Neutral	₹202.57B	25.45	―	0.11%	―	―
SWSOLAR	43 Neutral	₹50.05B	-12.60	―	―	112.24%	-474.43%

HBL Engineering Limited Corporate Events

Exchange Seeks Clarification from HBL Engineering on September 2025 Quarter Results

The stock exchange has sought clarification from HBL Engineering Limited regarding its financial results for the quarter ended 30 September 2025 under Regulation 33 of SEBI’s Listing Obligations and Disclosure Requirements framework. The company has yet to respond, indicating that investors and other stakeholders may not have full clarity on the firm’s latest quarterly financial disclosures until the requested information is provided.