HPL Electric & Power Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (24.7x coverage).

Cons

• HPL Electric & Power has only been paying a dividend for 3 years, and since then dividends per share have fallen.
• HPL Electric & Power has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• HPL Electric & Power's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• HPL Electric & Power's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• HPL Electric & Power is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• HPL Electric & Power is profitable, therefore cash runway is not a concern.
• HPL Electric & Power is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.8x debt.
• HPL Electric & Power's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (155.7% vs 76.6% today).

Cons

• Debt is not well covered by operating cash flow (15.2%, less than 20% of total debt).
• Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
• HPL Electric & Power's level of debt (76.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the HPL Electric & Power board of directors is about average.
• Rishi's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the HPL Electric & Power management team is about average.

Cons

• Rishi's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• HPL Electric & Power is not covered by any analysts.
• HPL Electric & Power has significant price volatility in the past 3 months.

past

Pros

• HPL Electric & Power's 1-year earnings growth exceeds its 5-year average (16.8% vs -0.2%)
• HPL Electric & Power has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• HPL Electric & Power's earnings growth has exceeded the IN Electrical industry average in the past year (16.8% vs 11.7%).

Cons

• HPL Electric & Power's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• HPL Electric & Power used its assets less efficiently than the IN Electrical industry average last year based on Return on Assets.
• HPL Electric & Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• HPL Electric & Power is good value based on assets compared to the IN Electrical industry average.
• HPL Electric & Power is good value based on earnings compared to the IN Electrical industry average.
• HPL Electric & Power is good value based on earnings compared to the India market.
• NSEI:HPL is up 20.1% outperforming the Electrical industry which returned 9.3% over the past month.
• NSEI:HPL is up 20.1% outperforming the market in India which returned 8% over the past month.

Cons

• HPL Electric & Power's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• HPL Electric & Power's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• HPL underperformed the Electrical industry which returned -33.5% over the past year.
• HPL underperformed the Market in India which returned -14.5% over the past year.