Hitachi Energy India (NSEI:POWERINDIA) - Share price, News & Analysis

POWERINDIA fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

POWERINDIA Stock Overview

Rewards

Earnings are forecast to grow 35.37% per year

Earnings grew by 49% over the past year

Risk Analysis

High level of non-cash earnings

Hitachi Energy India Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hitachi Energy India
Historical stock prices
Current Share Price	₹3,191.50
52 Week High	₹4,042.60
52 Week Low	₹1,741.00
Beta	0.37
1 Month Change	1.79%
3 Month Change	-6.75%
1 Year Change	75.52%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	346.99%

Recent News & Updates

Jun 17

Be Wary Of Hitachi Energy India (NSE:POWERINDIA) And Its Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect...

Shareholder Returns

	POWERINDIA	IN Electrical	IN Market
7D	-3.0%	-3.2%	-3.1%
1Y	75.5%	8.9%	-2.5%

Return vs Industry: POWERINDIA exceeded the Indian Electrical industry which returned 10.1% over the past year.

Return vs Market: POWERINDIA exceeded the Indian Market which returned -1.6% over the past year.

Price Volatility

Is POWERINDIA's price volatile compared to industry and market?
POWERINDIA volatility
POWERINDIA Average Weekly Movement	6.4%
Electrical Industry Average Movement	6.6%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: POWERINDIA is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: POWERINDIA's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2019	2,290	Venu Nuguri	https://www.hitachiabbpowergrids.com/in/en

ABB Power Products and Systems India Limited develops, engineers, manufactures, and sells products, systems, and projects for electricity transmission and related activities in India and internationally. The company’s products include a range of high-voltage products, transformers, grid automation and integration products, high-voltage direct current products, and power quality products and systems. The company was incorporated in 2019 and is headquartered in Bengaluru, India.

Hitachi Energy India Fundamentals Summary

How do Hitachi Energy India's earnings and revenue compare to its market cap?
POWERINDIA fundamental statistics
Market Cap	₹135.16b
Earnings (TTM)	₹1.64b
Revenue (TTM)	₹38.68b

82.4x

P/E Ratio

3.5x

P/S Ratio

Is POWERINDIA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
POWERINDIA income statement (TTM)
Revenue	₹38.68b
Cost of Revenue	₹24.57b
Gross Profit	₹14.11b
Other Expenses	₹12.47b
Earnings	₹1.64b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	38.69
Gross Margin	36.48%
Net Profit Margin	4.24%
Debt/Equity Ratio	11.0%

How did POWERINDIA perform over the long term?

See historical performance and comparison

Dividends

0.09%

Current Dividend Yield

6%

Payout Ratio

Does POWERINDIA pay a reliable dividends?

See POWERINDIA dividend history and benchmarks

When do you need to buy POWERINDIA by to receive an upcoming dividend?
Hitachi Energy India dividend dates
Ex Dividend Date	Jul 14 2022
Dividend Pay Date	Aug 21 2022
Days until Ex dividend	21 days
Days until Dividend pay date	59 days

Does POWERINDIA pay a reliable dividends?

See POWERINDIA dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is POWERINDIA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for POWERINDIA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for POWERINDIA. This is calculated by dividing POWERINDIA's market cap by their current preferred multiple.
What is POWERINDIA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹135.16b

POWERINDIA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.5x
Enterprise Value/EBITDA	57.2x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does POWERINDIA's PE Ratio compare to its peers?

POWERINDIA PE Ratio vs Peers

The above table shows the PE ratio for POWERINDIA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	44x

Forward PE

Price-To-Earnings vs Peers: POWERINDIA is expensive based on its Price-To-Earnings Ratio (82.4x) compared to the peer average (44x).

Price to Earnings Ratio vs Industry

How does POWERINDIA's PE Ratio compare vs other companies in the Indian Electrical Industry?

Price-To-Earnings vs Industry: POWERINDIA is expensive based on its Price-To-Earnings Ratio (82.4x) compared to the Indian Electrical industry average (19x)

Price to Earnings Ratio vs Fair Ratio

What is POWERINDIA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

POWERINDIA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	82.4x
Fair PE Ratio	42.4x

Price-To-Earnings vs Fair Ratio: POWERINDIA is expensive based on its Price-To-Earnings Ratio (82.4x) compared to the estimated Fair Price-To-Earnings Ratio (42.4x).

Share Price vs Fair Value

What is the Fair Price of POWERINDIA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: POWERINDIA (₹3191.5) is trading above our estimate of fair value (₹492.29)

Significantly Below Fair Value: POWERINDIA is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: POWERINDIA is poor value based on its PEG Ratio (2.3x)

Discover undervalued companies

Future Growth

How is Hitachi Energy India forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

35.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: POWERINDIA's forecast earnings growth (35.4% per year) is above the savings rate (6.7%).

Earnings vs Market: POWERINDIA's earnings (35.4% per year) are forecast to grow faster than the Indian market (17.3% per year).

High Growth Earnings: POWERINDIA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: POWERINDIA's revenue (12.8% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: POWERINDIA's revenue (12.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: POWERINDIA's Return on Equity is forecast to be high in 3 years time (22.4%)

Discover growth companies

Past Performance

How has Hitachi Energy India performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

49.0%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: POWERINDIA has a high level of non-cash earnings.

Growing Profit Margin: POWERINDIA's current net profit margins (4.2%) are higher than last year (3%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if POWERINDIA's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare POWERINDIA's past year earnings growth to its 5-year average.

Earnings vs Industry: POWERINDIA earnings growth over the past year (49%) exceeded the Electrical industry 47.6%.

Return on Equity

High ROE: POWERINDIA's Return on Equity (14.5%) is considered low.

Discover strong past performing companies

Financial Health

How is Hitachi Energy India's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: POWERINDIA's short term assets (₹26.8B) exceed its short term liabilities (₹23.4B).

Long Term Liabilities: POWERINDIA's short term assets (₹26.8B) exceed its long term liabilities (₹560.1M).

Debt to Equity History and Analysis

Debt Level: POWERINDIA's net debt to equity ratio (3.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if POWERINDIA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: POWERINDIA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: POWERINDIA's interest payments on its debt are well covered by EBIT (4.9x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Hitachi Energy India current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.094%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: POWERINDIA's dividend (0.094%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: POWERINDIA's dividend (0.094%) is low compared to the top 25% of dividend payers in the Indian market (1.93%).

Stability and Growth of Payments

Stable Dividend: POWERINDIA is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: POWERINDIA is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: POWERINDIA is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: POWERINDIA is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure

CEO

Venu Nuguri (56 yo)

2.5yrs

Tenure

₹29,110,000

Compensation

Mr. Venu Nuguri serves as Managing Director at Hitachi Energy India Limited (formerly known as ABB Power Products and Systems India Limited) since December 2, 2019. He holds a bachelor’s degree in electric...

CEO Compensation Analysis

Compensation vs Market: Venu's total compensation ($USD372.72K) is about average for companies of similar size in the Indian market ($USD457.09K).

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

Leadership Team

Experienced Management: POWERINDIA's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: POWERINDIA's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/22 00:00
End of Day Share Price	2022/06/22 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31