By HPL Electric & Power, a prominent player in India’s electrical equipment industry, has seen its shares soar by 19%, hitting a new all-time high of ₹555 each. This surge follows the announcement of a substantial order for smart meters from one of its major customers, valued at ₹2,100.71 crore, as detailed in the company’s recent exchange filing. This significant order underscores the growing demand for smart meters and HPL’s strong position in this market.
HPL’s ‘Metering & Systems’ segment has been gaining considerable traction. With over two decades of experience in supplying meters, HPL is well-placed to capitalize on the burgeoning smart meter market.
The company, founded in 1992, has established itself as one of India’s leading electrical equipment manufacturers, holding a significant market share in both the metering and consumer electrical segments. According to its latest annual report, HPL controls 20% of the domestic meters market and has an impressive installed capacity of 1.1 crore meters annually.
The company operates in two primary segments: metering and systems, and consumer and electrical. In the metering & systems segment, HPL manufactures both smart and conventional meters, primarily serving institutional and B2B customers. In the consumer & electrical segment, which targets B2C customers, HPL offers products across three sub-segments: switchgear, LED lighting, and wires & cables.
HPL’s international presence spans over 42 countries, and the company continues to see robust growth in export orders. It aims to further expand its global footprint, leveraging its strong product portfolio and manufacturing capabilities.
The company’s LV switchgear testing laboratory in Jabli, Himachal Pradesh, is accredited with IECEE certification for independent testing of MCB and RCCB for KEMA and CB certification from DEKRA, Netherlands. This certification highlights HPL’s commitment to maintaining high-quality standards and meeting international benchmarks.
Over the past year, HPL’s shares have appreciated by 225%, and over the last five years, they have increased nearly 866%. This impressive growth is a testament to the company’s strategic advancements and strong market position. In FY24, HPL achieved substantial growth in both revenue and profitability, driven by robust sales across its metering, systems & services segments, and significant advancements in smart metering technology.
The company’s recent performance has been bolstered by a steady influx of orders for conventional meters and significant contracts from leading Advanced Metering Infrastructure Service Providers (AMISPs). These initiatives are part of India’s national metering initiative, aimed at upgrading the country’s energy metering infrastructure. This expanding order pipeline is expected to enhance HPL’s future revenue streams and broaden its market reach across the nation.
In FY24, HPL reported a 15.74% increase in revenue from operations and a notable improvement in profitability, with PAT surging by 44.22% to ₹43.63 crore. Additionally, positive policy initiatives and a favorable industry outlook are anticipated to boost demand for HPL’s products, particularly switchgear and meters. The market for these products is projected to grow at a 15% CAGR over 2019–23, which bodes well for HPL’s future prospects.
HPL’s recent order win and strong market position in the smart meter segment underscore its potential for sustained growth. The company’s strategic advancements and robust order pipeline position it well to capitalize on the growing demand for smart metering solutions, both domestically and internationally.
As HPL continues to expand its global footprint and enhance its product offerings, it remains poised to deliver strong financial performance and shareholder value in the years ahead.
Investors and market watchers are keenly observing HPL’s progress, especially with its strong order book and strategic focus on smart metering technology. The company’s ability to secure significant contracts and maintain a robust growth trajectory highlights its competitive edge in the electrical equipment industry. With positive policy initiatives and a growing market for smart meters, HPL Electric & Power is well-positioned for continued success.
