HPL Electric (HPL)

FairStock Score: 51/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at HPL with Graham's discipline, I first ask: what am I buying, and at what price? The company is compounding nicely—sales grew 20.75%, profit grew 29.29%, and the latest quarter shows sales of ₹474 Cr and net profit of ₹20 Cr. That level of growth, with a PEG of 0.86, tells me the market is not pricing in the recent momentum. But growth alone never excites me. I need evidence of a durable moat and sensible capital allocation. Here, ROE is just 10.17% and ROCE 14.48%. These are satisfactory, not exceptional; they don't point to a brand with powerful pricing power or a structural advantage. The balance sheet is mildly leveraged: Debt/Equity 0.77, so not a fortress. Promoter holding at 72.66% is a plus; owners remain inside the tent. The Piotroski F-Score of 7/9 also suggests recent financial health is reasonably robust. Yet at ₹359.55, I am paying 21.60 times earnings and 2.73 times book value for a business earning only about 10% on equity. That is not a classic Graham bargain. The dividend yield of 0.29% is token, so the return must come from growth and repricing. FairStock Score of 47/100 says mixed. I would be tempted by the growth, but I would demand a wider margin of safety. I want more proof that the 20% sales growth is repeatable, that leverage stays controlled, and that return on equity improves. If those happen, maybe I can own it at a better price. Today, I watch and wait.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer