Hind Rectifiers Limited (HIRECT) AI Stock Analysis

• Market Cap: ₹31.89B
• Dividend Yield: 0.13%
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): 74.1
• Beta (1Y): 1.09
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹1,583.00 ▲(3.33% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Profitability Improvement

Improved profitability reflects efficient cost management and operational effectiveness, supporting future earnings stability.

Market Position

A diversified industry presence reduces dependency on a single market, providing resilience against sector-specific downturns.

Negative Factors

Free Cash Flow Decline

Reduced free cash flow may limit the company's ability to invest in growth opportunities and manage debt, impacting long-term financial flexibility.

Moderate Leverage

Moderate leverage suggests potential financial risk, as higher debt levels can strain resources and limit strategic options.

Capital Expenditure Management

High capital expenditure requirements could constrain cash flow, necessitating prudent management to ensure sustainable financial health.

Hind Rectifiers Limited Business Overview & Revenue Model

Company Description

Hind Rectifiers Limited (HIRECT) is a leading manufacturer of power electronics and electrical equipment based in India. The company operates in sectors such as railway, renewable energy, and industrial automation, offering a diverse range of core products including rectifiers, inverters, transformers, and other related electrical components. HIRECT is known for its innovative solutions and commitment to sustainability, serving both domestic and international markets.

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 robust revenue growth and profitability improvements. The balance sheet reflects moderate leverage, and the cash flow statement indicates a need for careful management of capital expenditures to sustain free cash flow generation.

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: Neutral
• Last Price: 1532.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 1532 is below the 20-day moving average (MA) of 1608.25, below the 50-day MA of 1638.87, and above the 200-day MA of 1343.04, indicating a neutral trend. The MACD of -49.66 indicates Positive momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 71.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HIRECT.

Hind Rectifiers Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOTECH	74 Outperform	₹17.73B	22.98	―	―	34.48%	40.61%
VOLTAMP	73 Outperform	₹74.52B	22.89	―	1.23%	15.87%	-4.28%
GENUSPOWER	68 Neutral	₹107.37B	24.70	―	0.78%	129.98%	215.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HIRECT	58 Neutral	₹31.89B	74.14	―	0.13%	35.05%	99.65%
AARTECH	56 Neutral	₹1.74B	63.92	―	0.24%	9.12%	22.53%
TARIL	56 Neutral	₹125.78B	48.10	―	0.07%	33.60%	100.44%

Hind Rectifiers Limited Corporate Events

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.

Hind Rectifiers Appoints Manoj Nair as CEO to Drive Growth

Hind Rectifiers Limited has appointed Mr. Manoj Nair as the new Chief Executive Officer. With over three decades of leadership experience in manufacturing, power, and technology-driven businesses, Mr. Nair is expected to enhance the company’s growth strategy and operational excellence. His appointment is anticipated to strengthen Hind Rectifiers’ market position and drive innovation, benefiting customers, partners, and stakeholders.

Hind Rectifiers Appoints New CEO to Strengthen Leadership

Hind Rectifiers Limited has announced the appointment of Mr. Manoj Nair as the new Chief Executive Officer (CEO) and Key Managerial Personnel (KMP) effective from October 10, 2025. This decision was made during the board meeting held on the same date, following the recommendation of the Nomination and Remuneration Committee. Mr. Suramya Nevatia, the outgoing CEO, will continue to serve as Chairman and Managing Director. The appointment of Mr. Nair, who brings extensive experience from his previous roles, including his tenure as CEO at IIMS Limited, is expected to enhance the company’s leadership and strategic direction.

Hind Rectifiers Completes Expansion and Backward Integration at Sinnar Plant

Hind Rectifiers Limited has completed the expansion and backward integration at its Sinnar plant, enabling the production of continuously transposed conductors, enameled paper insulated copper conductors, and paper insulated copper conductors. This strategic move is expected to enhance operational efficiency by streamlining the supply chain, reducing reliance on external vendors, and optimizing costs, thereby improving margins and strengthening the company’s business operations.

Hind Rectifiers Expands into France with BeLink Solutions Acquisition

Hind Rectifiers Limited has announced the approval of their acquisition of BeLink Solutions, a French company specializing in Robotics, EMS, and Electronics R&D. This strategic move, facilitated through a subsidiary structure in France, involves a transaction valued at 1 million Euros and is expected to enhance Hind Rectifiers’ international market presence and capabilities.