⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HBLENGINE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | HBLENGINE | Market Cap | 21,103 Cr. | Current Price | 761 ₹ | High / Low | 1,122 ₹ |
| Stock P/E | 32.2 | Book Value | 70.4 ₹ | Dividend Yield | 0.13 % | ROCE | 27.0 % |
| ROE | 20.2 % | Face Value | 1.00 ₹ | DMA 50 | 834 ₹ | DMA 200 | 769 ₹ |
| Chg in FII Hold | -1.23 % | Chg in DII Hold | 0.18 % | PAT Qtr | 400 Cr. | PAT Prev Qtr | 142 Cr. |
| RSI | 42.5 | MACD | -36.4 | Volume | 41,07,842 | Avg Vol 1Wk | 26,03,323 |
| Low price | 404 ₹ | High price | 1,122 ₹ | PEG Ratio | 0.66 | Debt to equity | 0.04 |
| 52w Index | 49.7 % | Qtr Profit Var | 397 % | EPS | 22.9 ₹ | Industry PE | 24.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT surged from 142 Cr. to 400 Cr., showing exceptional sequential growth with 397% YoY variation.
- Margins: ROE at 20.2% and ROCE at 27.0% reflect strong profitability and efficient capital utilization.
- Debt Ratios: Debt-to-equity at 0.04 indicates a nearly debt-free balance sheet.
- Cash Flows: Strong operating cash flows supported by diversified engineering and battery solutions.
- Return Metrics: EPS at 22.9 ₹ highlights solid earnings power.
💹 Valuation Indicators
- P/E Ratio: 32.2, above industry PE of 24.2, suggesting premium valuation.
- P/B Ratio: ~10.8 (Current Price / Book Value), reflecting expensive valuation relative to assets.
- PEG Ratio: 0.66, attractive, showing growth potential at reasonable valuation.
- Intrinsic Value: Current price (761 ₹) is below recent highs, offering potential upside if earnings momentum sustains.
🏢 Business Model & Competitive Advantage
- Operates in engineering solutions with focus on batteries, electronics, and defense-related products.
- Competitive advantage lies in innovation, diversified portfolio, and strong presence in niche markets.
- Resilient business model with exposure to industrial, defense, and energy sectors.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 740 ₹ – 760 ₹ (near DMA 200 and support levels).
- Long-Term Holding: Suitable for long-term investors seeking exposure to engineering and defense growth themes, with strong fundamentals supporting sustained returns.
Positive
- Debt-light balance sheet with debt-to-equity at 0.04.
- Exceptional quarterly PAT growth of 397%.
- Strong ROE and ROCE compared to industry averages.
- Rising DII inflows (+0.18%) show domestic investor confidence.
Limitation
- P/E ratio above industry average, indicating premium valuation.
- P/B ratio suggests expensive valuation relative to book value.
- Dividend yield at 0.13% is negligible.
Company Negative News
- Reduction in FII holdings (-1.23%) shows cautious foreign investor sentiment.
- Weak technical indicators (RSI 42.5, MACD -36.4) reflect bearish momentum.
Company Positive News
- Quarterly PAT growth highlights strong operational performance.
- Rising DII inflows support investor sentiment.
Industry
- Engineering and battery solutions sector benefits from rising demand in defense, energy storage, and industrial applications.
- Industry PE at 24.2 reflects fair valuations and moderate optimism.
Conclusion
- HBL Power Systems (HBLENGINE) is a fundamentally strong company with robust profitability, low debt, and strong growth momentum.
- Valuation is premium, but PEG ratio suggests reasonable growth-adjusted value.
- Best suited for long-term investors seeking exposure to engineering and defense sectors, with entry near support levels for better risk-reward.
Would you like me to also compare HBL Power Systems with peers like Exide Industries or Amara Raja Batteries to highlight its relative positioning in the battery and engineering sector?