Anand Rathi
CMP: ₹577.40
HPL Electric & Power Ltd is an India-based company, which is a multiproduct electric equipment manufacturer. The Company’s product portfolio covers a wide range of low-voltage electric products including metering solutions, switchgears, lighting products, wires and cables, solar solutions, and modular switches.
The company’s business operations are through two segments: Metering and Systems, and the Consumer & Industrial Segment. The Company has its presence across five key verticals: Metering Solutions, Switchgears, light emitting diodes (LED) Lighting, Wires and Cables, Solar Solutions and Modular Switches.
Its metering vertical offers smart meter, net meter, prepaid meter, Tri vector meter and others. Its Switchgear vertical includes Industrial Applications, which include air circuit breaker (ACB), molded case circuit breaker (MCCB), and phase selector.
The company’s strong product portfolio, healthy order book backed by its marquee clients are well placed to report profitability. We believe that company’s Revenue/EBITDA/PAT is expected to grow at a CAGR of 21/28/64 per cent respectively over FY24-26E. We believe the stock to witness gradual re-rating on the back of operating efficiency and improved return ratios We initiate the coverage with a “BUY” rating on this stock by assigning 39x of FY26E earnings with a target price of ₹710.