Multibagger HPL Electric & Power shares surge 10% on ₹370 crore order win

HPL Electric & Power, a leading electrical equipment manufacturer in India, saw its shares surge 10% to ₹404.70 in today's intraday trade, March 13 after securing a major order for the supply of smart meters.

The company informed investors via an exchange filing today, that it has won smart meter orders worth ₹369.90 crore (inclusive of tax) from its regular leading customers. 

The installation of smart meters is gaining momentum under various government initiatives and state utility programs. These devices, integrated into an online monitoring framework, are designed to reduce commercial losses for utilities, enhance revenue, and play a crucial role in power sector reforms.

The company holds a significant market share in the domestic metering segment and manufactures a diverse range of electrical equipment, including metering solutions, switchgear, lighting equipment, wires, and cables, catering to both consumer and institutional customers. With multiple tenders in the pipeline, the company anticipates accelerated demand for next-generation metering solutions. Currently, 99% of its metering order book is dedicated to smart meters.

As of February 10, 2025, its order book stands at over ₹3,400 crore, ensuring long-term revenue stability and reinforcing investor confidence, according to its Q3FY25 earnings filing.

The company is scaling up manufacturing capabilities to meet the growing demand for smart meters, switchgear, and energy-efficient electrical solutions. 

For the December quarter (Q3FY25), it reported a 7.36% year-on-year increase in revenue from operations to ₹392.48 crore, while profit after tax (PAT) jumped 51.42% YoY to ₹18.09 crore.

Down 37% in last 7 months, but still up 1655% in 5 years

The company’s shares have corrected 37% over the last seven months (including the current month), following a period between March 2023 and August 2024, during which it witnessed a one-way spike of 645%.

Looking at the long-term performance, the stock is still up 538% over the last three years and 1,655% over the last five years. Looking at the shareholding data, the promoter owns a 72.7% stake in the company as of Q3FY25, while the general public holds the remaining 26.5%.

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