HPL Electric (HPL)
Fast GrowerFairStock Score: 51/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹317.45 |
| Market Cap | ₹2,041.22 Cr |
| P/E Ratio | 22.42 |
| ROCE | 14.48% |
| ROE | 10.17% |
| Dividend Yield | 0.32% |
| Profit Growth | 1% |
| Debt/Equity | 0.75 |
| Sales Growth | 34.5% |
| Promoter Holding | 72.66% |
| 52-Week Range | ₹255.55 — ₹507.9 |
| Sector | Industrial Manufacturing |
| Book Value | ₹155.57 |
Strengths
- Sales growth of 20.75% and profit growth of 29.29% show strong momentum; latest quarter ₹474 Cr sales and ₹20 Cr net profit support the trend.
- PEG of 0.86 suggests the current P/E of 21.60 is reasonable if recent growth persists.
- Promoter holding of 72.66% aligns management interests with minority shareholders.
- Piotroski F-Score of 7/9 indicates solid recent financial health.
Concerns
- ROE of 10.17% is modest and does not strongly justify the P/B of 2.73.
- Debt/Equity of 0.77 creates leverage risk, especially if growth slows.
- P/E of 21.60 with a dividend yield of only 0.29% leaves limited margin of safety.
- FairStock Score of 47/100 and a wide 52-week range of ₹255.55-₹548.00 point to mixed sentiment and volatility.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer