HPL Electric & Power
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
HPL Electric & Power is strategically positioned for growth, driven by its dual focus on the Consumer & Industrial (C&I) segment and smart metering. Management's commentary highlights a robust order book exceeding ₹3,200 crore, primarily from the government-driven smart metering initiative, which provides long-term revenue visibility. The C&I segment is also gaining traction through aggressive channel expansion and product diversification, with management targeting ₹1,000 crore in revenue for FY27. However, the company faces margin pressures due to commodity price volatility and rising labor costs. Despite these challenges, HPL's commitment to operational efficiency and R&D investments in new product categories, such as smart water metering, positions it well for sustainable growth. Vista's financial outlook reflects an expected acceleration in revenue growth, although margins may remain under pressure. The automation and electricals industry is experiencing a sunrise phase, with strong demand from MSMEs and data centers, which supports HPL's growth trajectory. Over the next 12-24 months, key opportunities include leveraging the smart metering order book and expanding the C&I segment, while watchpoints include execution risks and commodity price fluctuations
Why We Like This Stock
- Robust order book exceeding ₹3,200 crore from the smart metering initiative provides long-term revenue visibility
- Aggressive channel expansion and product diversification in the C&I segment are expected to drive significant revenue growth
- Investments in R&D and new product categories, such as smart water metering, enhance competitive positioning
Things To Watch Out For
- Margin pressures due to commodity price volatility and rising labor costs could impact profitability
- Execution risks associated with scaling operations in the smart metering segment may pose challenges
- Intensifying competition, particularly from Chinese firms, could pressure pricing strategies and margins
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,461 | 1,700 | 1,811 | 2,059 | 2,300 |
| Profit Before Tax (Cr.) | 69 | 129 | 128 | 137 | 155 |
| PBT Margin | 4.7% | 7.6% | 7.1% | 6.6% | 6.8% |
| Net Profit (Cr.) | 56 | 96 | 96 | 102 | 116 |
| Earnings Per Share | 8.7 | 14.9 | 14.9 | 15.9 | 18.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 452 | 17-Jun-2026 |
Company Overview
Show Company Profile
HPL Electric & Power Limited manufactures and sells electric equipment under the HPL brand in India and internationally. The company operates through two segments: Metering, Systems & Services and Consumer, Industrial & Services. It offers digital panel and energy, multi-function, load managers, demand controllers, power quality, projection, dual source energy, HTCT, and keypad based prepaid energy meters; power factor control and regulator; meter cover boxes; and data acquisition and billing solutions. The company also provides edeno, smarts, tuff modular switches; LED lighting products, including bulbs, tube lights, panel lights, downlights, spotlights, strip, street lights, floodlights, and decorative lights, as well as boilers and petrol pump, high bay, box type LED, weatherproof, and well glass lights; and smarter accessories, such as angle and batten holder, multi plug, ceiling rose, plug top, extension cord, power strip and spike guards, door bells, O-protect, and DP switches, as well as sockets and support modules. It offers air circuit breakers, MCCB products, automatic transfer switches, changeover switches, control and fuse gears, motor starters, isolators, SFU and offload changeover, panels and enclosures, visual cutoff switch, and fuses and fuse base; and MCB, RCCB, RCBO, MCB changeover, ACCL 1 phase and 3 phase, and distribution boards. The company provides domestic and industrial wires; specialty cables, including data networking, CCTV, fire alarm, low induction, instrumentation, and hybrid cables; power cables such as multi core telephone, networking, and fire survival; and control cables, such as submersible and ZHFR. It offers ceiling, portable, ventilation, and farata fans; and solar products. The company serves institutional, commercial, industrial, and residential customers; power utilities; and government agencies through dealers and distributors. It also exports its products. The company was incorporated in 1992 and is based in Sonipat, India.