HPL Electric & Power Limited Fundamental Analysis
HPL Electric & Power Limited (HPL.NS) shows weak financial fundamentals with a PE ratio of 24.33, profit margin of 5.03%, and ROE of 9.61%. The company generates $18.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HPL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakHPL.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHPL.NS trades at attractive valuation levels.
Growth Score
ModerateHPL.NS shows steady but slowing expansion.
Financial Health Score
ExcellentHPL.NS maintains a strong and stable balance sheet.
Profitability Score
WeakHPL.NS struggles to sustain strong margins.
Key Financial Metrics
Is HPL.NS Expensive or Cheap?
P/E Ratio
HPL.NS trades at 24.33 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HPL.NS's PEG of -8.07 indicates potential undervaluation.
Price to Book
The market values HPL Electric & Power Limited at 2.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.88 times EBITDA. This is generally considered low.
How Well Does HPL.NS Make Money?
Net Profit Margin
For every $100 in sales, HPL Electric & Power Limited keeps $5.03 as profit after all expenses.
Operating Margin
Core operations generate 12.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.61 in profit for every $100 of shareholder equity.
ROA
HPL Electric & Power Limited generates $3.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HPL Electric & Power Limited generates limited operating cash flow of $1.15B, signaling weaker underlying cash strength.
Free Cash Flow
HPL Electric & Power Limited generates weak or negative free cash flow of $-363.16M, restricting financial flexibility.
FCF Per Share
Each share generates $-5.65 in free cash annually.
FCF Yield
HPL.NS converts -1.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-8.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How HPL.NS Stacks Against Its Sector Peers
| Metric | HPL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.33 | 30.65 | Better (Cheaper) |
| ROE | 9.61% | 1211.00% | Weak |
| Net Margin | 5.03% | -20858.00% (disorted) | Weak |
| Debt/Equity | 0.66 | 0.38 | Weak (High Leverage) |
| Current Ratio | 1.36 | 21.70 | Neutral |
| ROA | 3.79% | -1320842.00% (disorted) | Weak |
HPL.NS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HPL Electric & Power Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure