BSE:540136

Stock Analysis Report

HPL Electric & Power

Executive Summary

HPL Electric & Power Limited manufactures and sells electric equipment under the HPL brand in India.

Rewards

Trading at 76.9% below its fair value

Risk Analysis

Earnings have declined by -0.84% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹3B)



Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has HPL Electric & Power's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540136 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.1%

540136

-3.8%

IN Electrical

-1.1%

IN Market


1 Year Return

-26.2%

540136

-24.4%

IN Electrical

7.3%

IN Market

Return vs Industry: 540136 underperformed the Indian Electrical industry which returned -23.6% over the past year.

Return vs Market: 540136 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

540136IndustryMarket
7 Day-9.1%-3.8%-1.1%
30 Day15.8%1.3%1.5%
90 Day9.6%-1.3%5.1%
1 Year-25.8%-26.2%-22.8%-24.4%9.3%7.3%
3 Year-61.9%-62.9%-2.0%-5.4%28.9%22.0%
5 Yearn/a-17.8%-21.9%33.1%21.0%

Price Volatility Vs. Market

How volatile is HPL Electric & Power's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is HPL Electric & Power undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 540136 (₹47.55) is trading below our estimate of fair value (₹206.2)

Significantly Below Fair Value: 540136 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 540136 is good value based on its PE Ratio (9.6x) compared to the Electrical industry average (14.2x).

PE vs Market: 540136 is good value based on its PE Ratio (9.6x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540136's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540136 is good value based on its PB Ratio (0.4x) compared to the IN Electrical industry average (0.8x).


Next Steps

Future Growth

How is HPL Electric & Power forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as HPL Electric & Power has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has HPL Electric & Power performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540136 has high quality earnings.

Growing Profit Margin: 540136's current net profit margins (2.8%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: 540136's earnings have declined by -0.8% per year over the past 5 years.

Accelerating Growth: 540136's earnings growth over the past year (7.9%) exceeds its 5-year average (-0.8% per year).

Earnings vs Industry: 540136 earnings growth over the past year (7.9%) underperformed the Electrical industry 12.5%.


Return on Equity

High ROE: 540136's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HPL Electric & Power's financial position?


Financial Position Analysis

Short Term Liabilities: 540136's short term assets (₹10.5B) exceed its short term liabilities (₹7.8B).

Long Term Liabilities: 540136's short term assets (₹10.5B) exceed its long term liabilities (₹650.2M).


Debt to Equity History and Analysis

Debt Level: 540136's debt to equity ratio (76.6%) is considered high.

Reducing Debt: 540136's debt to equity ratio has reduced from 149.5% to 76.6% over the past 5 years.

Debt Coverage: 540136's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: 540136's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: 540136 has a high level of physical assets or inventory.

Debt Coverage by Assets: 540136's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is HPL Electric & Power's current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 540136's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 540136's dividend (0.42%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: 540136 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 540136 has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.1%), 540136's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of HPL Electric & Power's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average management tenure


CEO

Lalit Seth (72yo)

0yrs

Tenure

₹37,547,000

Compensation

Mr. Lalit Seth serves as Chairman and Managing Director of HPL Electric & Power Private Limited. Mr. Seth served as Chief Managing Director of HPL Electric & Power Private Limited. Mr. Seth has over 37 yea ...


CEO Compensation Analysis

Compensation vs Market: Lalit's total compensation ($USD529.85K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Lalit's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.8yrs

Average Tenure

54yo

Average Age

Experienced Management: 540136's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

65yo

Average Age

Experienced Board: 540136's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lalit Seth (72yo)

    Chairman & MD

    • Compensation: ₹37.55m
  • Rishi Seth (48yo)

    Joint MD & Director

    • Tenure: 19.8yrs
    • Compensation: ₹15.67m
  • Gautam Seth (47yo)

    Joint MD & Director

    • Tenure: 11.9yrs
    • Compensation: ₹15.67m
  • Chandra Jain (58yo)

    Head of Metering & Whole Time Director

    • Tenure: 14.7yrs
    • Compensation: ₹15.17m
  • Vivek Kumar (43yo)

    Company Secretary & Compliance Officer

    • Compensation: ₹1.64m
  • Girjesh Sharma (57yo)

    Chief Vice President

    • Tenure: 8.8yrs
  • Sandeep Tandon (54yo)

    Vice President of Business Development

    • Tenure: 12.1yrs
  • Sudhir Barik

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: ₹3.02m
  • C. Kundu (61yo)

    Senior Vice President of Switchgear

    • Predman Bhat (51yo)

      Vice President of Sales & Marketing


      Board Members

      • Lalit Seth (72yo)

        Chairman & MD

        • Compensation: ₹37.55m
      • Rishi Seth (48yo)

        Joint MD & Director

        • Tenure: 19.8yrs
        • Compensation: ₹15.67m
      • Gautam Seth (47yo)

        Joint MD & Director

        • Tenure: 11.9yrs
        • Compensation: ₹15.67m
      • Hargovind Sachdev (62yo)

        Non-Executive Independent Director

        • Tenure: 1.8yrs
        • Compensation: ₹347.00k
      • Chandra Jain (58yo)

        Head of Metering & Whole Time Director

        • Tenure: 14.7yrs
        • Compensation: ₹15.17m
      • Tarun Sehgal (72yo)

        Non-Executive Independent Director

        • Tenure: 4yrs
        • Compensation: ₹290.00k
      • Jatinder Sabharwal (73yo)

        Non-Executive Independent Director

        • Tenure: 4yrs
        • Compensation: ₹430.00k
      • Madhu Nath (65yo)

        Non-Executive Independent Director

        • Tenure: 4yrs
        • Compensation: ₹370.00k
      • Jainul Haque (72yo)

        Non-Executive Independent Director

        • Tenure: 4yrs
        • Compensation: ₹310.00k

      Company Information

      HPL Electric & Power Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: HPL Electric & Power Limited
      • Ticker: 540136
      • Exchange: BSE
      • Founded: 1992
      • Industry: Electrical Components and Equipment
      • Sector: Capital Goods
      • Market Cap: ₹2.839b
      • Shares outstanding: 64.30m
      • Website: https://www.hplindia.com

      Number of Employees


      Location

      • HPL Electric & Power Limited
      • Windsor Business Park, B-1D
      • Sector-10
      • Noida
      • Uttar Pradesh
      • 201301
      • India

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      540136BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2016
      HPLNSEI (National Stock Exchange of India)YesEquity SharesININROct 2016

      Biography

      HPL Electric & Power Limited manufactures and sells electric equipment under the HPL brand in India. The company operates in 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 door bells, 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 OProtecte products. Further, the company provides domestic and industrial wires; data networking and transmission, and specialty cables, as well as special, control, and instrumentation cables; down-lights and panels; LED battens, bulbs, panels, and spotlights; and architecture, retail, boilers and petrol pump, highbay, box type LED, weather proof, well glass, street, flood, and exotica lighting products, as well as solar products. It serves residential and commercial users, public and private enterprises, city infrastructure customers, and power utilities through dealers and distributors. The company also exports its products in approximately 35 countries. HPL Electric & Power Limited was incorporated in 1992 and is based in Noida, India. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/22 13:08
      End of Day Share Price2020/01/22 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.