Investing in stocks can lead to exciting opportunities, and today, HPL Electric & Power gave investors a reason to take notice. On Friday, September 13, 2024, the company’s stock surged by 2.4%, reaching an intraday high of ₹613.20 per share. This significant rise followed an important company announcement, which may catch the eye of those looking for growth in the electrical and power industries. For investors seeking long-term gains, this move could highlight the potential benefits of a well-timed share market investment.
What boosted the stock price?
HPL Electric & Power’s share price jumped after the company disclosed a new order worth ₹144 crore. The order is for the supply of smart metres and conventional metres, a significant win for the company as it strengthens its foothold in the metering solutions sector. According to the exchange filing, the order was secured from one of their leading customers, and it will be executed under specific terms and conditions.
This development has reignited investor interest in HPL Electric & Power, a well-established manufacturer of electrical equipment. The company has been operational for over 40 years and is known for its leadership in areas such as modular switches, switchgear, LED lighting, and wires and cables.
A robust business portfolio and expansion plans
HPL Electric & Power holds a commanding market position in several sectors. For instance, it has a 50% share in the on-load change-over switches market and a 20% stake in the domestic electric metres market. Its strong foothold also extends to the low-voltage switchgear and LED lighting sectors, making it a significant player in India’s electrical industry.
The company operates seven manufacturing facilities and two research and development centres across India, ensuring innovation and quality. It also maintains a vast distribution network with over 900 dealers and 45,000 retailers, with plans to expand to 100,000 retailers by March 2025. Furthermore, its international presence spans 42 countries, giving HPL Electric & Power global reach and credibility.
Impressive order book and growth potential
HPL’s stock performance is further supported by a solid order book valued at over ₹1,500 crore, with a large chunk coming from metering solutions and systems. This consistent order flow highlights the company’s ability to secure large contracts, positioning it for sustained growth. The market capitalisation currently stands at ₹3,904 crore, placing it in the BSE SmallCap category.
At 9:24 AM on September 13, HPL Electric & Power shares were trading at ₹607.25 per share, up 1.41%, while the broader BSE Sensex was slightly down by 0.16%.
Key takeaways
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