⚠ 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: 4.0
| Stock Code | HBLENGINE | Market Cap | 18,893 Cr. | Current Price | 681 ₹ | High / Low | 1,122 ₹ |
| Stock P/E | 23.3 | Book Value | 70.4 ₹ | Dividend Yield | 0.29 % | ROCE | 27.0 % |
| ROE | 20.2 % | Face Value | 1.00 ₹ | DMA 50 | 739 ₹ | DMA 200 | 754 ₹ |
| Chg in FII Hold | -1.23 % | Chg in DII Hold | 0.18 % | PAT Qtr | 218 Cr. | PAT Prev Qtr | 400 Cr. |
| RSI | 44.8 | MACD | -24.2 | Volume | 13,16,941 | Avg Vol 1Wk | 11,83,096 |
| Low price | 420 ₹ | High price | 1,122 ₹ | PEG Ratio | 0.48 | Debt to equity | 0.04 |
| 52w Index | 37.2 % | Qtr Profit Var | 255 % | EPS | 28.5 ₹ | Industry PE | 23.3 |
📊 Core Financials
- Quarterly PAT declined from ₹400 Cr. to ₹218 Cr., showing short-term weakness.
- ROCE at 27.0% and ROE at 20.2% → strong efficiency compared to peers.
- Debt-to-equity ratio of 0.04 → virtually debt-free.
- Cash flows supported by diversified engineering and battery operations.
💹 Valuation Indicators
- P/E Ratio: 23.3 vs Industry PE of 23.3 → fairly valued.
- P/B Ratio: ~9.68x (₹681 / ₹70.4) → high valuation relative to book value.
- PEG Ratio: 0.48 → attractive valuation relative to growth.
- Intrinsic Value: Current price near fair zone, supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
- Diversified engineering company with strong presence in batteries, electronics, and defense applications.
- High ROCE and ROE provide competitive advantage.
- Exposure to cyclical demand and raw material costs may affect earnings stability.
📈 Technical & Entry Zone
- Current Price: ₹681, below 50 DMA (₹739) and 200 DMA (₹754).
- RSI: 44.8 → neutral zone.
- MACD: -24.2 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹650–₹670.
- Long-Term Holding: Suitable for investors with 3–5 year horizon, given strong fundamentals and sector demand.
✅ Positive
- Strong ROCE (27%) and ROE (20.2%).
- Low debt levels (0.04 debt-to-equity).
- DII holdings increased by 0.18%, showing institutional support.
⚠️ Limitation
- High P/B ratio reflects premium valuation.
- Quarterly PAT decline raises short-term concerns.
- Volatility due to cyclical demand in engineering and battery sectors.
📉 Company Negative News
- Decline in FII holdings (-1.23%).
- Stock corrected from 52-week high of ₹1122.
📈 Company Positive News
- EPS of ₹28.5 reflects profitability despite margin pressures.
- Quarterly profit variation shows resilience (255% YoY growth).
🏭 Industry
- Engineering and battery sector supported by demand in defense, electronics, and renewable energy.
- Industry PE at 23.3 indicates fair valuation levels.
🔎 Conclusion
HBLENGINE is a diversified engineering company with strong efficiency metrics, low debt, and sectoral demand support.
Despite short-term earnings weakness, fundamentals remain robust.
Valuations are fair relative to industry, though P/B ratio is high.
Best accumulated around ₹650–₹670 for investors with a 3–5 year horizon, supported by strong ROCE and ROE.