Hind Rectifiers Limited (HIRECT) AI Stock Analysis

• Market Cap: ₹21.52B
• Dividend Yield: 0.13%
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): 45.3
• Beta (1Y): 1.42
• Revenue Growth: 35.05%
• EPS Growth: 99.65%
• Country: IN
• Employees: 425
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 8.58
• Shares Outstanding: 17,183,807
• 10 Day Avg. Volume: 1,446
• 30 Day Avg. Volume: 3,930
• PEG Ratio: 0.22
• Price to Book (P/B): 10.20
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 126.31
• 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: 58 Neutral
• Price Target: ₹1,302.00 ▼(-11.52% Downside)

Hind Rectifiers Limited's strong financial performance is a key strength, driven by robust revenue growth and profitability. However, technical indicators show bearish momentum, and the high P/E ratio suggests overvaluation. The low dividend yield further limits attractiveness for income-focused investors.

Positive Factors

Strong revenue growth

Sustained 26.7% top-line growth reflects expanding demand for the firm's power-conversion products and effective project execution. Durable revenue momentum supports reinvestment, scale advantages and long-term earnings stability if the company maintains execution and order conversion.

Improving and healthy margins

Robust gross and operating margins indicate structural cost control, product pricing power and operational efficiency in engineered solutions. Sustained margin profile supports cash generation and resilience to input cost swings across project cycles over the medium term.

Recurring aftermarket and niche positioning

Installed base spares, service and ETO rectifier projects create sticky recurring revenue and higher switching costs for customers. Presence in traction/railway and heavy-electrical niches strengthens long-term demand visibility and supports aftermarket margin resilience.

Negative Factors

Decline in free cash flow

A large drop in free cash flow driven by higher capex reduces internally available funds for growth, dividends or debt repayment. Lower FCF relative to earnings constrains financial flexibility and raises reliance on external financing if capex persists.

Moderate leverage

A debt-to-equity near 1.0 signals meaningful leverage. Combined with reduced free cash flow, leverage increases interest and refinancing risk, limiting capital allocation flexibility and raising vulnerability to demand shocks or slower collections in project-heavy markets.

Project-driven revenue cyclicality

Dependence on engineered, project-based sales creates lumpy order timing and working-capital swings. This structural cyclicality complicates forecasting, can exacerbate margin volatility across quarters, and raises sensitivity to industrial capex cycles over the medium term.

Hind Rectifiers Limited Business Overview & Revenue Model

Company Description

Hind Rectifiers Limited develops, designs, manufactures, and markets power semiconductor devices, power electronic equipment, and railway transportation equipment in India and internationally. It offers IGBT-based converters, transformers, auxiliary panels, electronics for 3 phase locomotives, and LHB coaches; electrostatic high voltage power supplies for a pollution control system for the power sector; and large power supplies for electrolysis and electrochemical process equipment. The company also provides various traction and aux transformers, IGBT propulsion systems, auxiliary converters and battery chargers, on-board DC rectifiers, traction motors, electrical switch boards, safety and protection electronics, and rolling stock HVAC systems, as well as electrostatic precipitator, power quality improvement, special rectifiers, and power rectifiers for electrochemical industries. In addition, it offers servicing, maintenance, erectioning, and commissioning services. Hind Rectifiers Limited was incorporated in 1958 and is based in Mumbai, India.

How the Company Makes Money

Hind Rectifiers Limited generates revenue through the sale of its electrical products and solutions, which are in high demand in various industries, particularly in the railway and renewable energy sectors. The company operates on a B2B model, supplying its products to government agencies, public sector undertakings, and private enterprises. Key revenue streams include direct sales of power electronics products, long-term contracts for manufacturing and supply of specialized equipment, and maintenance services for existing installations. HIRECT also benefits from strategic partnerships with other manufacturers and technology providers, which enhance its product offerings and market reach. Additionally, the company may engage in research and development activities funded through government grants or collaborations, further contributing to its earnings.

Hind Rectifiers Limited Financial Statement Overview

Summary

Hind Rectifiers Limited shows strong financial health with significant revenue growth and improved profitability. The balance sheet indicates moderate leverage, and while cash flow generation is strong, the decline in free cash flow due to increased capital expenditure requires careful management.

Income Statement

Hind Rectifiers Limited has demonstrated strong revenue growth with a 26.7% increase in revenue from 2024 to 2025. The gross profit margin is healthy at 27.0%, and the net profit margin improved significantly to 5.7% in 2025 from 2.4% in 2024. The EBIT and EBITDA margins are also strong at 17.4% and 10.5%, respectively, indicating efficient operations and cost management. Overall, the income statement shows robust growth and profitability trends.

Balance Sheet

The company's debt-to-equity ratio stands at 1.03, reflecting moderate leverage. Return on Equity (ROE) improved to 23.2% in 2025, showcasing effective use of equity financing. The equity ratio is at 38.3%, indicating a balanced capital structure. While the company maintains an adequate equity position, the debt level should be monitored to avoid financial strain.

Cash Flow

Hind Rectifiers Limited has achieved a 34.0% decline in free cash flow from 2024 to 2025, primarily due to increased capital expenditure. The operating cash flow to net income ratio is 0.96, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio decreased to 0.35, indicating potential constraints on cash available for expansion and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.35B	6.55B	5.17B	3.59B	3.72B	3.05B
Gross Profit	1.55B	1.77B	1.31B	795.31M	828.28M	687.00M
EBITDA	804.24M	686.98M	378.62M	49.51M	225.34M	203.70M
Net Income	429.48M	371.13M	125.10M	-63.63M	77.98M	53.31M
Balance Sheet
Total Assets	0.00	4.17B	3.31B	2.92B	2.46B	2.41B
Cash, Cash Equivalents and Short-Term Investments	2.93M	31.71M	34.60M	81.50M	36.22M	49.88M
Total Debt	0.00	1.64B	1.35B	1.05B	749.90M	837.57M
Total Liabilities	-1.60B	2.57B	2.06B	1.81B	1.39B	1.41B
Stockholders Equity	1.60B	1.60B	1.25B	1.12B	1.07B	997.71M
Cash Flow
Free Cash Flow	0.00	129.09M	195.65M	-212.40M	161.91M	98.36M
Operating Cash Flow	0.00	356.25M	338.98M	330.25M	362.66M	231.21M
Investing Cash Flow	0.00	-253.06M	-194.73M	-293.02M	-206.03M	-83.81M
Financing Cash Flow	0.00	-107.38M	-142.64M	-36.79M	-159.45M	-161.46M

Hind Rectifiers Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1471.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HIRECT, the sentiment is Negative. The current price of 1471.6 is above the 20-day moving average (MA) of 1325.56, above the 50-day MA of 1417.15, and above the 200-day MA of 1445.60, indicating a bearish trend. The MACD of -70.73 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 36.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HIRECT.

Hind Rectifiers Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLTAMP	73 Outperform	₹74.67B	22.72	―	1.27%	15.87%	-4.28%
GENUSPOWER	68 Neutral	₹86.08B	17.19	―	0.82%	129.98%	215.49%
INDOTECH	68 Neutral	₹14.13B	16.78	―	―	34.48%	40.61%
TARIL	65 Neutral	₹70.93B	26.34	―	0.07%	33.60%	100.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HIRECT	58 Neutral	₹21.52B	45.26	―	0.13%	35.05%	99.65%
AARTECH	56 Neutral	₹1.43B	42.48	―	0.26%	9.12%	22.53%

Hind Rectifiers Limited Corporate Events

Hind Rectifiers Overhauls Leadership With New Global CEO and Interim Compliance Chief

Hind Rectifiers Limited has strengthened its leadership structure with the appointment of Douglas J. Bailey as Global Chief Executive Officer for the company and its present and future subsidiaries, and the designation of Megha Singh Shekhawat as Interim Company Secretary and Compliance Officer, effective January 30, 2026. Bailey brings over two decades of senior experience in the global semiconductor and electronics industry, with a strong record in scaling revenues, improving margins and building market leadership in advanced technologies, while Shekhawat adds seasoned expertise in corporate secretarial, governance and regulatory compliance across listed and unlisted entities; together, these appointments signal an effort to bolster strategic direction, global growth capabilities and governance standards for the company and its group entities.

Hind Rectifiers Overhauls Leadership, Names Global CEO and Interim Compliance Chief

Hind Rectifiers Limited has announced a management reshuffle, appointing veteran semiconductor and electronics executive Douglas J. Bailey as Global Chief Executive Officer for the company and all present and future subsidiaries. Bailey brings more than two decades of international experience in technology strategy, innovation and marketing, including a strong track record in scaling revenues, improving margins and building market leadership in advanced semiconductor technologies such as GaN and SiC, which is expected to bolster Hind Rectifiers’ global ambitions and competitive positioning. In parallel, the board has appointed Megha Singh Shekhawat as Interim Company Secretary and Compliance Officer, adding experienced oversight in corporate governance and regulatory compliance, particularly in dealings with stock exchanges and statutory authorities, a move that underscores the company’s focus on strengthening its governance and stakeholder confidence as it pursues its growth plans.

Hind Rectifiers Releases Investor Presentation for Upcoming Earnings Call

Hind Rectifiers Limited has announced the release of an Investor Presentation, which will be accessible on the company’s website. This presentation is intended for use in an upcoming Earnings Conference Call with analysts and investors, indicating the company’s commitment to transparency and engagement with stakeholders.