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HBL Engineering Overview

1. Business Overview

HBL Power Systems Ltd. is a leading Indian manufacturer specializing in technically demanding batteries and power systems. The company designs, develops, and manufactures a wide range of batteries, including nickel-cadmium, lead-acid (VRLA, tubular), and increasingly, lithium-ion batteries. It serves diverse sectors such as defense, aviation, railways, industrial (UPS, telecom, oil & gas), and specialized commercial applications. HBL also produces industrial electronics, including power conversion equipment, rectifiers, and railway signaling and control systems. The company generates revenue by selling these specialized battery products and integrated power/electronic solutions to its clients.

2. Key Segments / Revenue Mix

HBL Power Systems Ltd.'s revenue primarily stems from:

Batteries: This is the core segment, typically contributing the largest share of revenue (often over 60-70%). It encompasses various battery chemistries and applications for industrial, defense, aviation, and railway sectors.

Industrial Electronics: Includes power electronics, rectifiers, battery chargers, and specialized control systems.

Railways: Focuses on railway signaling, train protection systems, and power solutions for rolling stock and infrastructure.

Specific percentage contributions can vary annually based on project completions and market demand.

3. Industry & Positioning

The Indian battery industry is diverse, encompassing automotive, industrial, consumer, and specialized segments. It is undergoing significant transformation driven by electrification (EVs) and renewable energy storage. The industrial and specialized battery segment, where HBL operates, is characterized by higher technical requirements and longer sales cycles.

HBL Power Systems Ltd. is positioned as a niche player, a specialist in high-performance, critical application batteries, particularly for defense, aviation, and railways. While it competes with major players like Exide Industries and Amara Raja Batteries in certain lead-acid segments, HBL differentiates itself through its expertise in specialized chemistries (e.g., nickel-cadmium) and its strong footprint in strategic sectors where entry barriers are high due to stringent quality, reliability, and certification standards.

4. Competitive Advantage (Moat)

Niche Expertise & Technology: HBL possesses strong in-house R&D capabilities for specialized battery chemistries (e.g., Ni-Cd, specialized lead-acid designs) and advanced applications, particularly for the defense and aerospace sectors, which have high entry barriers.

Strategic Client Relationships: Decades-long relationships and approvals from critical government and industrial clients (e.g., Indian Army, Navy, Air Force, Indian Railways) provide a significant advantage in securing and executing specialized projects.

Product Diversification: The ability to offer a range of battery chemistries (lead-acid, Ni-Cd, Li-ion) and complementary power electronics allows HBL to cater to a broader spectrum of complex client requirements, reducing reliance on a single technology.

5. Growth Drivers

Defense Modernization & Indigenization: Increased defense spending and the "Make in India" initiative will drive demand for specialized batteries and power systems for defense platforms (submarines, tanks, missiles).

Railway Electrification & Upgrades: Ongoing projects by Indian Railways for electrification, signaling system upgrades, and modern train sets will fuel demand for specialized railway batteries and power electronics.

Industrial & Telecom Sector Growth: Expansion in industrial automation, data centers, and the rollout of 5G infrastructure will boost demand for UPS and telecom power backup solutions.

Specialized EV Applications: Growth in niche electric vehicle segments (e.g., material handling, defense EVs, specialized commercial vehicles) where HBL's lithium-ion technology can be deployed.

Export Opportunities: Potential for exports of specialized batteries to global niche markets.

6. Risks

Raw Material Price Volatility: Fluctuations in the prices of key raw materials like lead, nickel, cadmium, lithium, and other components can significantly impact manufacturing costs and profitability.

Technological Obsolescence: The rapid pace of innovation in battery technology, particularly the dominance of lithium-ion, poses a risk to traditional chemistries if the company fails to adapt and scale up new technologies effectively.

Intense Competition: Competition from established domestic players in traditional battery segments and global players for advanced battery technologies remains a challenge.

Government Policy & Spending Reliance: A significant portion of the business relies on government spending in defense and railways, making the company susceptible to budgetary changes or delays in project execution.

Capital Intensity: Battery manufacturing is a capital-intensive industry, requiring continuous investment in R&D, plant, and machinery.

7. Management & Ownership

HBL Power Systems Ltd. is promoted by Dr. A.J. Prasad and his family, who maintain a significant ownership stake in the company. The management team is generally perceived as experienced, with a long history in the power and battery sectors, and a strong emphasis on research and development for specialized products. The ownership structure includes a substantial promoter holding, alongside institutional investors (domestic and foreign) and public shareholders.

8. Outlook

HBL Power Systems Ltd. holds a strategic position in India's specialized battery and power systems market, particularly in critical sectors like defense, aviation, and railways. Its established expertise in technically demanding applications and long-standing client relationships provide a stable foundation. The company is poised to benefit from India's thrust on defense indigenization, railway modernization, and industrial growth. However, the rapidly evolving battery technology landscape, marked by the increasing dominance of lithium-ion, necessitates continuous R&D and significant capital expenditure to remain competitive. The ability to successfully expand its lithium-ion offerings beyond niche applications and manage raw material price volatility will be crucial for sustained long-term growth, while its reliance on government contracts introduces an element of demand unpredictability.

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HBL Engineering Key Financials

Market Cap ₹20673 Cr.

Stock P/E 74.8

P/B 9.4

Current Price ₹745.8

Book Value ₹ 79.5

Face Value 1

52W High ₹1122

Dividend Yield 0.13%

52W Low ₹ 542.2

HBL Engineering Share Price

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Volume
Price

HBL Engineering Quarterly Price

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HBL Engineering Peer Comparison

HBL Engineering Quarterly Results

#(Fig in Cr.) Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Net Sales 557 599 610 520 521 451 476 602 1223 874
Other Income 3 5 7 5 12 2 7 20 16 11
Total Income 560 605 617 526 533 452 482 621 1239 885
Total Expenditure 456 486 479 410 412 357 396 410 679 572
Operating Profit 104 118 138 116 121 95 86 212 560 313
Interest 3 3 4 2 3 5 4 6 3 3
Depreciation 10 11 11 11 11 11 11 12 12 12
Exceptional Income / Expenses -0 -3 -25 -0 0 -0 -1 -3 -24 -1
Profit Before Tax 91 102 98 103 107 79 71 191 520 297
Provision for Tax 24 23 32 27 31 21 18 49 133 80
Profit After Tax 67 78 66 76 76 58 52 141 387 218
Adjustments 2 1 16 4 11 6 -7 2 -0 3
Profit After Adjustments 69 79 81 80 87 65 45 143 387 221
Adjusted Earnings Per Share 2.5 2.9 2.9 2.9 3.1 2.3 1.6 5.2 14 8

HBL Engineering Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 1350 1299 1414 1603 1266 1092 912 1236 1369 2233 1967 3175
Other Income 22 13 18 24 13 17 10 14 18 18 27 54
Total Income 1372 1312 1432 1627 1279 1108 922 1251 1386 2251 1994 3227
Total Expenditure 1211 1164 1286 1477 1169 1011 845 1097 1217 1810 1576 2057
Operating Profit 161 148 146 150 110 97 77 153 169 441 418 1171
Interest 71 68 46 41 31 22 15 7 7 13 13 16
Depreciation 53 51 48 46 44 41 39 35 35 41 44 47
Exceptional Income / Expenses -13 -2 3 -10 7 5 -5 11 1 -28 -1 -29
Profit Before Tax 24 27 54 55 43 40 19 122 130 377 374 1079
Provision for Tax 10 12 16 23 15 14 6 29 31 96 97 280
Profit After Tax 14 15 38 32 28 26 14 94 98 280 276 798
Adjustments 0 0 0 0 0 0 0 0 0 1 0 -2
Profit After Adjustments 14 15 38 32 28 26 14 94 99 281 277 796
Adjusted Earnings Per Share 0.6 0.6 1.4 1.1 1 0.9 0.5 3.4 3.6 10.1 10 28.8

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -12% 17% 12% 4%
Operating Profit CAGR -5% 40% 34% 10%
PAT CAGR -1% 43% 60% 35%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 27% 93% 79% 36%
ROE Average 20% 19% 14% 8%
ROCE Average 27% 25% 19% 13%

HBL Engineering Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 565 609 729 752 766 773 782 866 951 1221 1483
Minority's Interest 0 -1 -2 -2 0 0 0 0 0 -1 -0
Borrowings 201 107 28 6 7 1 11 28 39 23 6
Other Non-Current Liabilities 21 19 16 17 14 22 24 23 18 45 65
Total Current Liabilities 800 735 725 613 424 358 238 262 347 483 640
Total Liabilities 1587 1468 1496 1386 1212 1154 1054 1178 1355 1772 2193
Fixed Assets 456 416 417 363 321 304 279 265 320 354 397
Other Non-Current Assets 70 89 73 67 73 56 97 120 102 202 364
Total Current Assets 1060 964 1006 934 802 774 659 792 933 1215 1432
Total Assets 1587 1468 1496 1386 1212 1154 1054 1178 1355 1772 2193

HBL Engineering Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 22 22 17 6 7 12 41 26 50 132 223
Cash Flow from Operating Activities 79 158 43 159 167 149 121 62 122 270 239
Cash Flow from Investing Activities -13 -10 60 -8 1 -6 -32 -17 -50 -137 -320
Cash Flow from Financing Activities -66 -153 -114 -149 -163 -114 -104 -22 10 -42 -26
Net Cash Inflow / Outflow -0 -5 -11 1 5 29 -14 23 82 91 -107
Closing Cash & Cash Equivalent 21 17 6 7 12 41 26 50 132 223 117

HBL Engineering Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 0.56 0.59 1.39 1.14 1 0.95 0.5 3.39 3.56 10.13 9.99
CEPS(Rs) 2.63 2.59 3.13 2.81 2.61 2.42 1.9 4.65 4.83 11.6 11.57
DPS(Rs) 0.2 0.25 0.25 0.25 0.3 0.3 0.35 0.4 0.45 0.5 1
Book NAV/Share(Rs) 22.32 24.08 26.3 27.12 27.64 27.88 28.21 31.23 34.32 44.03 53.49
Core EBITDA Margin(%) 9.58 9.57 8.37 7.71 7.68 7.37 7.39 11.24 11.06 18.96 19.91
EBIT Margin(%) 6.53 6.79 6.55 5.86 5.8 5.71 3.74 10.51 9.96 17.45 19.67
Pre Tax Margin(%) 1.66 1.92 3.54 3.37 3.38 3.67 2.13 9.9 9.48 16.87 19
PAT Margin (%) 0.95 1.05 2.5 1.94 2.19 2.4 1.51 7.58 7.19 12.55 14.05
Cash Profit Margin (%) 4.59 4.66 5.65 4.76 5.7 6.13 5.76 10.42 9.78 14.4 16.3
ROA(%) 0.82 0.97 2.59 2.2 2.14 2.22 1.24 8.4 7.77 17.93 13.95
ROE(%) 2.44 2.53 5.74 4.28 3.65 3.41 1.77 11.37 10.83 25.81 20.45
ROCE(%) 7.44 7.92 8.5 8.23 6.94 6.48 3.87 14.79 14.02 33.76 27.46
Receivable days 104.32 106.48 106.58 103.21 117.68 111.7 111.83 80.66 80.63 54.29 67.32
Inventory Days 141.54 118.62 95.41 86.57 99.81 105.17 118.9 88.12 85.78 62.84 89.64
Payable days 104.75 81.92 67.74 49.65 45.16 40.97 47.17 37.54 40.73 36.31 58.58
PER(x) 90.75 62.01 30.94 39.31 25.39 11.68 67.45 18.7 26.75 44.85 47.26
Price/Book(x) 2.28 1.51 1.63 1.66 0.92 0.4 1.18 2.03 2.77 10.32 8.83
Dividend Yield(%) 0.39 0.69 0.58 0.56 1.18 2.71 1.05 0.63 0.47 0.11 0.21
EV/Net Sales(x) 1.43 1.1 1.16 0.99 0.71 0.35 1 1.38 1.88 5.56 6.61
EV/Core EBITDA(x) 12.01 9.7 11.22 10.64 8.17 3.93 11.89 11.1 15.2 28.15 31.09
Net Sales Growth(%) 3.27 -3.83 8.92 13.33 -21.03 -13.75 -16.46 35.54 10.72 63.18 -11.92
EBIT Growth(%) -22.29 0.67 5.46 -4.86 -23.27 -15.19 -44.28 280.48 4.98 185.83 -0.73
PAT Growth(%) -64.29 7.96 158.85 -17.44 -12.5 -5.47 -45.5 582.69 5.05 184.77 -1.38
EPS Growth(%) -64.12 4.31 136.27 -17.44 -12.51 -5.47 -47.64 584.09 5.06 184.72 -1.41
Debt/Equity(x) 1.22 0.9 0.66 0.49 0.3 0.19 0.07 0.06 0.08 0.05 0.04
Current Ratio(x) 1.33 1.31 1.39 1.52 1.89 2.16 2.78 3.03 2.69 2.51 2.24
Quick Ratio(x) 0.68 0.77 0.83 0.92 1.13 1.31 1.55 1.86 1.72 1.62 1.4
Interest Cover(x) 1.34 1.39 2.17 2.35 2.4 2.81 2.32 17.37 20.83 30.13 29.71
Total Debt/Mcap(x) 0.53 0.6 0.44 0.29 0.33 0.49 0.06 0.03 0.03 0 0

HBL Engineering Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 59.11 59.11 59.11 59.11 59.11 59.11 59.11 59.11 59.11 59.11
FII 2.66 4.58 4.65 4.9 5.22 4.83 4.83 7.1 5.87 5.94
DII 0.41 0.66 1.07 0.97 0.39 0.36 0.36 0.65 0.82 0.79
Public 37.82 35.65 35.17 35.02 35.28 35.7 35.7 33.14 34.2 34.16
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

HBL Engineering News

HBL Engineering Pros & Cons

Pros

  • Company has delivered good profit growth of 60% CAGR over last 5 years
  • Company has reduced debt.
  • Company is almost debt free.

Cons

  • Debtor days have increased from 36.31 to 58.58days.
  • Stock is trading at 9.4 times its book value.
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