HBL Power Systems Limited is an Indian company engaged in designing, developing, and manufacturing specialized batteries and electronic solutions. They also provide service activities related to their products. The company operates its business under three primary verticals: battery, electronics, and defense.
Batteries:
- HBL Power is a leading manufacturer of specialized batteries for various applications, including fighter aircraft, unmanned aerial vehicles, torpedoes, submarines, and trains.
- They offer the world’s widest range of specialized batteries, meeting the demanding requirements of diverse customers.
- Some of their notable battery products include nickel-cadmium, silver-zinc, and lithium-ion batteries.
Electronics:
- HBL Power’s electronics division manufactures a variety of railway and industrial electronic products.
- Their flagship products in this vertical include the train collision avoidance system (TCAS) and the train management system (TMS).
- They also develop electric drive train kits for retrofitting light commercial vehicles and passenger buses.
Defense:
- HBL Power is a key supplier of electronic systems and batteries for the Indian defense sector.
- They manufacture various defense electronics products, such as communication systems, radars, and night vision devices.
- Their batteries are used in a wide range of defense applications, including fighter aircraft, missiles, and submarines.
Other Ventures:
- HBL Power has also diversified into other areas, such as precision manufacturing, spun reinforced concrete, and green technology products.
- They are constantly innovating and developing new products and services to meet the evolving needs of their customers.
HBL Power Overview
| Aspect | Details |
|---|---|
| Company Name | HBL Power Systems Limited |
| Year Founded | 1977 |
| Headquarters | Hyderabad, India |
| Sector | Industrial Consumables |
| Products/Services | Batteries (lead acid, nickel-cadmium, silver zinc, customized, lithium), Power Electronics, Spun Concrete Products |
| Key Markets | India, International |
| Market Capitalization | Rs 12,092.63 Cr (as of December 31, 2023) |
| Recent Revenue and Profit | Consolidated Total Income: Rs 559.94 Cr (Q3 2023-24), Net Profit: Rs 67.16 Cr (Q3 2023-24) |
| Website | https://www.hbl.in/ |
| Stock Ticker | HBL02 (NSE/BSE) |
HBL Power Products
| Category | Products | Description | Examples |
|---|---|---|---|
| Batteries | Lead Acid Batteries | Reliable and cost-effective energy storage for various applications. | Automotive, UPS, Industrial, Traction |
| Lithium-Ion Batteries | High-performance and lightweight batteries for demanding applications. | Medical, Aerospace, Marine, Solar | |
| Nickel-Cadmium Batteries | Durable and long-lasting batteries for critical operations. | Emergency Lighting, Power Grid, Military | |
| Custom Battery Solutions | Specialized batteries engineered for specific needs. | Renewable Energy Storage, Oil & Gas Platforms, Data Centers | |
| Power Electronics | Thyristor Battery Chargers | Efficient and reliable charging solutions for various battery types. | Industrial, Solar, Marine, Traction |
| Inverters | Convert DC power to AC for off-grid applications or backup power. | Solar Energy Systems, Emergency Power Supply, Mobile Homes | |
| Switchgear and Control Panels | Manage and protect electrical systems. | Distribution Networks, Industrial Plants, Building Automation | |
| Concrete | Prestressed Concrete Poles | Durable and long-lasting poles for transmission and distribution lines. | Utility Grid, Street Lighting, Telecommunications |
| Concrete Structures | Custom-designed concrete structures for various applications. | Building Foundations, Bridges, Retaining Walls | |
| Solar Energy | Solar Panels | Generate electricity from sunlight for homes and businesses. | Rooftop Systems, Ground-mounted Arrays, Commercial Installations |
| Solar Inverters | Convert DC power from solar panels to AC for use in the grid. | On-grid and Off-grid Systems, Residential and Commercial Applications | |
| Solar EPC Services | Design, engineering, and construction of solar power projects. | Consultation, Project Management, Installation, Maintenance | |
| Engineering | Turnkey Power Solutions | Design and build complete power systems for specific needs. | Data Centers, Renewable Energy Systems, Industrial Facilities |
| Technical Services | Maintenance, repair, and optimization of power systems. | Battery Testing, System Upgrades, Troubleshooting, Training |
HBL Power Fundamentals
| Metric | Value |
|---|---|
| Market Capitalization | ₹ 1,552.55 crore |
| Revenue (TTM) | ₹ 556.58 crore |
| EBITDA (TTM) | ₹ 120.30 crore |
| EPS (TTM) | ₹ 9.63 |
| P/E Ratio (TTM) | 67.56 |
| P/B Ratio | 12.73 |
| Dividend Yield | 0.00% |
| Debt/Equity Ratio | Negligible |
| Book Value per Share | ₹ 49.73 |
| Face Value | ₹ 10 |
| Return on Equity (ROE) | 10.45% |
| Debt | Negligible |
HBL Power Revenue and Net Profit
| Year | Revenue (Crore) | Net Profit (Crore) | YoY Revenue Growth | YoY Net Profit Growth |
|---|---|---|---|---|
| 2023 | 556.58 | 65.23 | 77.32% | 29.27% |
| 2022 | 318.16 | 50.50 | 75.99% | 101.00% |
| 2021 | 180.55 | 25.11 | 21.06% | 39.44% |
| 2020 | 149.10 | 17.96 | 8.05% | 14.66% |
| 2019 | 138.01 | 15.68 | 7.02% | 24.38% |
| 2018 | 129.02 | 12.60 | – | – |
HBL Power Shareholding Patterns
| Category | Shareholding (% of total shares) |
|---|---|
| Promoters | 59.11% |
| Public | 38.63% |
| Foreign Institutional Investors (FIIs) | 2.23% |
| Others | 0.03% |
HBL Power Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Potential High Price |
|---|---|
| 2024 | ₹625.00 |
| 2025 | ₹720.00 |
| 2026 | ₹810.00 |
| 2027 | ₹900.00 |
| 2028 | ₹1000.00 |
HBL Power Share Price Target for 2024
HBL Power Share Price Target for 2024 is 625.
HBL Power Share Price Target for 2025
HBL Power Share Price Target for 2025 is 720.
HBL Power Share Price Target for 2026
HBL Power Share Price Target for 2026 is 810.
HBL Power Share Price Target for 2027
HBL Power Share Price Target for 2027 is 900.
HBL Power Share Price Target for 2028
HBL Power Share Price Target for 2028 is 1000.
HBL Power Dividend History
| Year | Announcement Date | Ex-Dividend Date | Dividend Value | Dividend Type |
|---|---|---|---|---|
| 2023 | May 24, 2023 | September 14, 2023 | Rs. 0.45 per share | Equity Dividend (45%) |
| 2022 | June 20, 2022 | September 15, 2022 | Rs. 0.35 per share | Equity Dividend (Revised) |
| 2021 | June 30, 2021 | September 17, 2021 | Rs. 0.30 per share | Equity Dividend (30%) |
| 2020 | – | – | – | No dividend declared |
| 2019 | May 30, 2019 | September 18, 2019 | Rs. 0.25 per share | Equity Dividend (25%) |
| 2018 | May 28, 2018 | September 18, 2018 | Rs. 0.25 per share | Equity Dividend (25%) |
HBL Power Share Split History
| Date | Ratio | Ex-split Date |
|---|---|---|
| November 24, 2009 | 1:10 | November 24, 2009 |
Future Outlook of HBL Power
Positives:
- Strong Financials: HBL Power has enjoyed significant revenue and profit growth in recent years, with healthy margins and return ratios. This strong financial performance bodes well for their future.
- Promising Markets: The company operates in growing markets like batteries, power electronics, and renewables, driven by factors like electric vehicles and cleaner energy initiatives. This provides ample room for expansion.
- Diversified Portfolio: HBL Power’s presence in various sectors like industrial, defense, and solar energy minimizes dependence on any single market, offering stability and resilience.
- Debt-Free Balance Sheet: With negligible debt, the company has low financial risk and greater flexibility to pursue future growth opportunities.
- Government Support: HBL Power benefits from government initiatives like Make in India and focus on renewable energy, providing potential tailwinds for its business.
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Risks Associated With Investing in HBL Power
| Category | Risk | Description |
|---|---|---|
| Financial Risks | Competition | Increased competition from established and new players could squeeze market share and margins. |
| Economic Volatility | Global economic downturns or inflation could affect demand for HBL’s products. | |
| Interest Rate Fluctuations | Rising interest rates could increase borrowing costs and impact profitability. | |
| Operational Risks | Technology Disruption | Rapid advancements in battery and energy technologies could render HBL’s products obsolete. |
| Execution Risk | Failure to effectively implement expansion plans or new ventures could lead to financial losses. | |
| Raw Material Availability & Pricing | Reliance on fluctuating raw materials like lead could impact production costs and margins. | |
| Strategic Risks | Government Policy Changes | Regulatory shifts and policy changes related to energy or batteries could adversely impact the company. |
| Environmental & Sustainability Concerns | HBL’s business activities (lead usage) could face scrutiny and potential restrictions. |
HBL Power Competitors
| Category | Main Competitors | Description |
|---|---|---|
| Batteries | * Lead Acid Batteries: | * Exide Industries |
| Power Electronics | * Thyristor Battery Chargers: | * Emerson Electric |
| Concrete | * Prestressed Concrete Poles: | * L&T Infrastructure Engineering Ltd. |
| Solar Energy | * Solar Panels: | * Adani Green Energy Ltd. |
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
