The shares of this midcap company jumped by around 3 percent in Friday’s trading session after reporting an increase in net profits by 47 percent YoY. In one year, the stock has delivered more than 150 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 16,888 crores, the shares of HBL Power Systems (NS:HBLS) Ltd started Friday’s trading session on a higher note at Rs. 617.95 compared to its previous close of Rs. 595.30. During the trading session, the shares hit a high of Rs. 622.65, gaining around 3 percent and are currently trading at Rs. 612 apiece.
Is HBL Power Systems a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a positive movement in the share price was observed after the company announced Q1FY25 results. Quarterly, the revenue decreased by around 15 percent from Rs. 610.09 crores during the March quarter to Rs. 520.11 crores in the June quarter. Contrastingly, the net profits increased by around 15 percent from Rs. 65.54 crores to Rs. 75.85 crores during the same timeframe.
Comparing the same metrics on a YoY basis, the revenue jumped by around 11 percent from Rs. 467.43 crores during Q1FY24 to Rs. 520.11 crores in Q1FY25. In addition, the net profits zoomed by 47 percent from Rs. 51.51 crores to Rs. 75.85 crores during the same period.
On a YoY basis, EBITDA has increased by 42.3 percent, rising to Rs 111 crores from Rs 78 crores. The EBITDA margin has also improved, reaching 21.3 percent compared to 16.7 percent.
The company generates its revenue from various segments, with approximately 64 percent coming from Industrial Batteries, over 18 percent from Defence & Aviation Batteries, and around 17 percent from the Electronics segment.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 23.01 percent and a return on capital employed (RoCE) of 31.80 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 11.76 percent.
Defence and Railway sectors:
In the defence sector, HBL manufactures a variety of specialized batteries, including nickel-cadmium batteries, silver batteries, and thermal batteries. These products are used in applications ranging from torpedoes and missiles to aircraft and submarines.
Furthermore, HBL has developed the Train Collision Avoidance System (TCAS) and the Train Management System (TMS), which are crucial for improving safety on the railways. Additionally, HBL is part of a consortium that developed the Kavach train protection system, aimed at preventing collisions.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 59.11 percent of the shares, FIIs own 4.66 percent, and Retail Investors hold the remaining 35.17 percent.
Company Profile:
Incorporated in 1983, HBL Power Systems Limited specializes in the manufacturing of various power systems, primarily focusing on batteries and related electronic products.
Written By Vaibhav Patil
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