HPL Electric & Power Limited (HPL) AI Stock Analysis

• Market Cap: ₹20.74B
• Dividend Yield: 0.24%
• Average Volume (3M): 13.15K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.64
• Revenue Growth: 6.08%
• EPS Growth: 49.44%
• Country: IN
• Employees: 1,262
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.02
• Shares Outstanding: 64,300,490
• 10 Day Avg. Volume: 9,762
• 30 Day Avg. Volume: 13,152
• PEG Ratio: 0.25
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 42.24
• 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: ₹447.00
• Price Target Upside: 13.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹339.00 ▼(-13.99% Downside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

HPL Electric & Power Limited's strong financial performance is offset by bearish technical indicators and a high valuation. The stock's oversold technical condition could present a potential buying opportunity, but the high P/E ratio and low dividend yield suggest caution.

Positive Factors

Revenue and Margin Expansion

Sustained revenue growth and rising gross/net margins over multiple years indicate expanding scale, improved product mix and cost control. These trends support durable profitability, reinvestment capacity and pricing power across meter, switchgear and consumer segments over the medium term.

Strong Cash Flow Generation

Healthy operating cash flow and positive free cash flow conversion show the business converts profits into cash reliably. This underpins sustainable capex funding, working capital for tender execution, and the ability to deleverage or fund strategic investments over coming quarters.

Stable Balance Sheet & Improved ROE

A strengthening equity base and improving ROE point to better capital efficiency and shareholder returns. Manageable leverage and a stable balance sheet enhance financial flexibility to support large utility contracts and sustained operations through industry cycles.

Negative Factors

Tender-driven Revenue Lumpy

Heavy reliance on utility tenders and bulk procurement makes revenue and order timing lumpy and dependent on public capex cycles. That structural contract pattern reduces predictability of near-term revenue and can pressure margins during competitive bidding rounds over months.

Exposure to Input Cost Volatility

Significant exposure to metals and electronics input costs creates structural margin risk, since competitive tender pricing limits passthrough. Commodity and component price swings can compress margins and complicate forecasting and contract pricing for several quarters.

Leverage Needs Improvement

Moderate debt levels constrain financial flexibility for larger capex, inventory for bulk orders or strategic M&A. Reducing leverage would improve resilience to tender timing and input cost shocks and provide capacity to bid larger utility contracts over the medium term.

HPL Electric & Power Limited Business Overview & Revenue Model

Company Description

HPL Electric & Power Limited manufactures and sells electric equipment under the HPL brand in India. The company operates through four segments: Metering, Switchgear, Lighting & Electronics, and Cables. It offers digital panel and energy, multi-function, din rail, 1Ph and 3P direct connection counter/LCD, trivector, dual source projection, long range integrated, import export – net, and IR and IRDA meters; load managers and demand controllers; power factor control and regulators; meter cover boxes; LPR, prepaid, smart, and group metering solutions; and data acquisition and billing software. The company also provides switches, sockets, communication sockets, regulators and dimmers, support modules, specialty products, plates, and boxes; cordless chimes, extension cords, holders and celling roses, international adapters, plug and multi plugs, special products, spike guard and power strips, wire doorbells, and video door phone accessories; and connectors and power socket combination products. In addition, it offers air circuit breakers, MCCB products, changeover switches, control and fuse gears, and isolators; and Osafe and RCCB products, MCB's and MCB changeover, distribution boards, ACCL 1 and 3 phase products, and oprotect products. Further, the company provides domestic and industrial wires; data networking and transmission, and specialty cables, as well as special, control, and instrumentation cables; downlights and panels; LED battens, lamp, panels, and spotlights; home décor products; and architecture, retail, boilers and petrol pump, high bay, box type LED, weatherproof, well glass, street, flood, and exotica lighting products, as well as solar products. It serves residential and commercial users, public and private enterprises, and power utilities through dealers and distributors. The company also exports its products to approximately 42 countries. HPL Electric & Power Limited was incorporated in 1992 and is based in Noida, India.

How the Company Makes Money

HPL Electric & Power Limited generates revenue through the sale of its extensive range of electrical products, including energy meters, switchgear, and lighting solutions. The company's revenue model is primarily driven by direct sales to utility companies and government contracts, which are significant contributors to its earnings. Additionally, HPL benefits from maintaining long-term relationships with various stakeholders in the energy sector, including partnerships with both public and private sector enterprises. The company also engages in research and development to innovate and expand its product line, thereby enhancing its market competitiveness and opening new revenue streams. Strategic collaborations and participation in infrastructure projects further bolster its financial performance.

HPL Electric & Power Limited Financial Statement Overview

Summary

HPL Electric & Power Limited demonstrates strong financial performance with robust revenue growth, improved profit margins, and solid cash flow generation. The balance sheet is stable, though leverage could be improved.

Income Statement

HPL Electric & Power Limited has shown robust revenue growth, with total revenue increasing from ₹8,750.9 million in 2021 to ₹17,051.2 million in 2025. The gross profit margin has improved over the years, reaching approximately 35.2% in 2025. The net profit margin has also risen, indicating enhanced profitability. The EBIT and EBITDA margins have improved significantly, demonstrating effective cost management and operational efficiency. The company's revenue growth rate from 2024 to 2025 was a strong 16.7%, showcasing an upward growth trajectory.

Balance Sheet

The balance sheet of HPL is stable, with a steady increase in stockholders' equity, reflecting shareholder confidence. The debt-to-equity ratio is relatively moderate, suggesting manageable leverage levels, though there is room for improvement. The equity ratio has been stable, indicating a solid base of equity financing. Return on Equity (ROE) has improved, driven by rising net income, which is a positive indicator of the company's ability to generate returns on shareholders' investments.

Cash Flow

HPL's cash flow position is strong, with consistent growth in operating cash flow over the years. The free cash flow has shown positive growth, indicating efficient capital management. The operating cash flow to net income ratio is healthy, suggesting the company's ability to convert profits into cash. Moreover, free cash flow to net income ratio is favorable, reflecting efficient cash generation relative to reported earnings.

Breakdown	TTM	Mar 2025	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	16.93B	17.05B	14.61B	10.14B	8.75B	9.77B
Gross Profit	6.03B	6.00B	4.85B	3.60B	3.22B	3.64B
EBITDA	2.62B	2.60B	1.81B	1.29B	1.23B	1.23B
Net Income	951.75M	937.69M	435.64M	77.73M	99.64M	217.72M
Balance Sheet
Total Assets	0.00	20.95B	18.74B	16.38B	15.90B	15.69B
Cash, Cash Equivalents and Short-Term Investments	612.82M	612.82M	263.62M	390.80M	402.03M	295.70M
Total Debt	0.00	6.39B	6.27B	5.97B	5.88B	5.94B
Total Liabilities	-9.17B	11.78B	10.44B	8.72B	8.30B	8.19B
Stockholders Equity	9.17B	9.15B	8.28B	7.64B	7.58B	7.49B
Cash Flow
Free Cash Flow	0.00	646.79M	568.25M	560.78M	704.70M	-51.42M
Operating Cash Flow	0.00	1.38B	1.00B	1.01B	845.60M	625.14M
Investing Cash Flow	0.00	-701.26M	-393.65M	-413.09M	-81.42M	-599.02M
Financing Cash Flow	0.00	-657.24M	-723.13M	-580.34M	-705.97M	-29.41M

HPL Electric & Power Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 394.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HPL, the sentiment is Negative. The current price of 394.15 is above the 20-day moving average (MA) of 345.69, above the 50-day MA of 358.93, and below the 200-day MA of 461.73, indicating a bearish trend. The MACD of -3.29 indicates Positive momentum. The RSI at 37.78 is Neutral, neither overbought nor oversold. The STOCH value of 19.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HPL.

HPL Electric & Power Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRKABEL	74 Outperform	₹173.36B	38.96	―	0.49%	17.36%	52.81%
BBL	70 Outperform	₹27.13B	21.07	―	1.27%	16.36%	21.58%
GENUSPOWER	68 Neutral	₹78.32B	13.34	―	0.82%	129.98%	215.49%
FINCABLES	66 Neutral	₹144.69B	20.53	―	1.04%	7.42%	-4.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
UNIVCABLES	62 Neutral	₹23.84B	15.20	―	0.45%	24.03%	51.58%
HPL	60 Neutral	₹20.74B	22.46	―	0.24%	6.08%	49.44%

HPL Electric & Power Limited Corporate Events

HPL Electric & Power Files SEBI Demat Compliance Certificate for December Quarter

HPL Electric & Power Limited informed the stock exchanges that it has received a certificate from its registrar and share transfer agent, KFin Technologies Limited, under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The registrar confirmed that no requests for dematerialization of HPL’s securities were received from depository participants during the quarter, indicating no change in the demat status of its shares for that period, and the company has submitted this confirmation for regulatory compliance and record-keeping by the exchanges.