HPL Electric & Power
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
HPL Electric & Power Limited is strategically positioned for growth, primarily driven by its robust order book exceeding ₹3,200 crores in the smart metering segment and strong performance in the Consumer & Industrial (C&I) sector. Management's focus on maintaining pricing discipline and improving product mix is crucial for sustaining margins amidst potential commodity price volatility. Vista's financial outlook anticipates accelerating revenue growth, supported by the government's smart metering initiative and the company's expansion into smart water metering. However, execution risks and regulatory delays remain significant watchpoints. The macro environment in India, characterized by improving manufacturing activity and stable inflation, further 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 headwinds may arise from input cost fluctuations and project execution challenges. Overall, HPL's strategic initiatives align with Vista's forecast of stable margins and fair valuation, with a 12-month target price of ₹402.74 and a 24-month target of ₹470.98
Why We Like This Stock
- Strong order book exceeding ₹3,200 crores in the smart metering segment supports revenue growth
- Management's focus on pricing discipline and product mix improvement is expected to sustain margins
- Expansion into smart water metering presents a long-term growth opportunity
Things To Watch Out For
- Execution risks and potential regulatory delays could impact the smart metering rollout
- Commodity price volatility poses a risk to margins in the C&I segment
- Market competition may exert pressure on pricing and profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,461 | 1,700 | 1,811 | 2,062 | 2,311 |
| Profit Before Tax (Cr.) | 69 | 129 | 128 | 131 | 153 |
| PBT Margin | 4.7% | 7.6% | 709.3% | 6.4% | 6.6% |
| Net Profit (Cr.) | 56 | 96 | 96 | 98 | 115 |
| Earnings Per Share | 8.7 | 14.9 | 14.9 | 15.3 | 17.8 |
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. 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 regulators; 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. In addition, 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. Further, 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. Additionally, it offers ceiling, portable, ventilation, and farata fans; and solar products. It serves institutional, commercial, and residential customers; power utilities; and government agencies 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 Sonipat, India.