HPL Electric surges 18.5% to 52-week high on bagging Rs 903-crore orders

Shares of HPL Electric and Power surged 18.5 percent in afternoon trade on July 4 to a 52-week high of Rs 153.45 after the company bagged orders worth Rs 903 crore.

The orders are for the supply of smart meters. The company believes that these orders will further bolster its total pending order pipeline which stood at over Rs 2,250 crore as on July 4.

At 12.28pm, the shares of HPL Electric and Power were trading with gains of 16.10 percent at Rs 150.25 on the National Stock Exchange. The stock has a market capitalisation of Rs 968 crore.

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Trading volumes were also strong which firmed up the stock’s upward momentum. Around 32 lakh shares of the company changed hands on the exchanges as against the one-month daily traded average of 14 lakh shares.

The stock has also been a multibagger, flushing out over 145 percent returns in just the past one year. The electrical equipment manufacturer commands a market share of around 20 percent in the domestic meters market with an installed capacity of 1.1 crore units per year. Its strong presence in the segment makes it well-positioned to capitalise on the smart meter opportunity.

Going forward, the company remains focused on driving healthy growth in its consumer business, which contributed to around 63 percent of its total revenue in FY21. By doing this, the company aims to lower its overall working capital cycle and generate a higher return of capital employed.

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