HPL Electric & Power, a prominent electrical equipment manufacturer in India, saw its shares surge by 19%, reaching a new all-time high of ₹555 each. This significant rise in share price followed the announcement of a substantial order for smart meters from one of its major customers, valued at ₹2,100.71 crore, as per the company's recent exchange filing.
The company's 'Metering & Systems' segment has been gaining strong traction. As a leading player with a successful track record of supplying meters for over two decades, HPL is well-positioned to capitalise on the growing smart meter market.
Founded in 1992, HPL Electric & Power is one of India’s leading electrical equipment manufacturers, with a significant presence in two major segments: metering and systems, and consumer and electrical. The company holds a 20% market share in the domestic meters market, with an installed capacity of 1.1 crore meters annually, according to the company's recent annual report.
In the metering & systems segment, which is primarily institutional and B2B, HPL manufactures both smart and conventional meters. In the consumer & electrical segment, which is mainly B2C, the company operates in three sub-segments: switchgear, LED lighting, and wires & cables.
With a presence in over 42 countries worldwide, HPL continues to see robust growth in export orders and aims to further expand its global footprint. The company's LV switchgear testing laboratory in Jabli, Himachal Pradesh, is accredited with IECEE certification for independent testing of MCB and RCCB for KEMA and CB certification from DEKRA, Netherlands.
Over the past year, HPL's shares have appreciated by 225%, and over the last five years, they have increased nearly 866%.
In FY24, HPL Electric & Power achieved substantial growth in both revenue and profitability, driven by strong sales across its metering, systems & services segments and strategic advancements in smart metering technology.
This growth was propelled by a steady influx of orders for conventional meters and significant contracts from leading Advanced Metering Infrastructure Service Providers (AMISPs). These initiatives are part of India's national metering initiative, aimed at upgrading the country's energy metering infrastructure.
The expanding order pipeline in this segment is expected to enhance future revenue streams for the company and broaden its market reach across the nation. It reported a 15.74% increase in revenue from operations and a notable improvement in profitability, with PAT surging by 44.22% to ₹43.63 crore in FY24.
Additionally, positive policy initiatives and a favorable industry outlook are anticipated to boost demand for HPL’s products, particularly switchgear and meters. which is projected to grow at a 15% CAGR over 2019–23, which bodes well for HPL’s future prospects.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
