HBLENGINE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials Breakdown

Profitability

ROE: 20.2% and ROCE: 27.0% — excellent returns, indicating strong capital efficiency and operational strength.

EPS: ₹12.0 — solid earnings base, with PAT surging 90.4% QoQ to ₹142 Cr, showcasing strong margin expansion.

Debt-to-Equity: 0.04 — virtually debt-free, a major strength in a manufacturing-heavy business.

Dividend & Book Value

Dividend Yield: 0.12% — minimal, suggesting reinvestment focus.

Book Value: ₹52.6 — implies a P/B ratio of ~16.3, high but justified by premium ROE and growth trajectory.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 70.8 Significantly above industry average (33.6) — priced for aggressive growth

PEG Ratio 1.45 Fair — growth expectations are moderately priced

Intrinsic Value ~₹780–₹820 CMP slightly above fair value zone

Valuation is rich, but supported by strong earnings momentum and sector tailwinds.

🔋 Business Model & Competitive Edge

Sector: Electrical Products — industrial batteries, defense electronics, and e-mobility solutions.

Strengths

Only Indian manufacturer of PLT lead batteries; ranks 2nd globally in industrial nickel batteries

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Diversified segments: Industrial Batteries, Defense & Aviation, and Electronics (including train collision avoidance systems).

Strong operating margins (OPM ~32%) and consistent revenue growth

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Zero change in FII/DII holdings — stable institutional sentiment.

Challenges

High valuation multiples and low dividend yield may deter value investors.

RSI at 61.5 — approaching overbought zone, suggesting short-term caution.

📉 Technicals & Entry Zone

Current Price: ₹858

DMA 50: ₹750 | DMA 200: ₹620 — bullish trend intact

MACD: Strongly positive — momentum accelerating

📌 Suggested Entry Zone: ₹780–₹820

A dip near intrinsic value or 50 DMA would offer a better margin of safety for accumulation.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, niche leadership, and low debt make HBL Engineering a high-quality long-term play.

Accumulate on dips: Ideal for investors seeking exposure to defense electronics, battery innovation, and e-mobility infrastructure.

You can explore HBLENGINE’s full financials and technical chart or review its quarterly performance and peer comparison for deeper insights

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. Let me know if you'd like a comparison with Exide Industries or Amara Raja Batteries.

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www.screener.in

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in.tradingview.com

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