Stock Below Rs 100: HPL Electric And Power Ltd Wins Smart Meter Orders Worth Rs 204 Crore; Stock Zooms Over 8%!

Big Announcement  

On Wednesday, the stock zoomed over 8% and it is trading near the day’s high so far, the volume registered by the stock is over 7 lakh shares which is the highest single-day volume since February 28, 2023. The stock opened at the level of Rs 90.40 and thereafter, the stock traded sideways. However, in the last half-hour, it has seen the bulk of its up-move as the company has announced that it has won smart meter orders worth Rs 204 Crore (Rs 179.45 crore net of tax) from customers with a pan-India presence. With a robust pipeline of pending orders, the company has been operating and supplying at an accelerated pace aligning with the roll-out of government-led schemes for smart metering. 

Order Book  

In 9MFY23, the metering and systems segment registered a jaw-dropping growth of 60% YoY and 46% growth in Q3FY23. The company has a healthy order book of over Rs 879 crore, which is anticipated to drive the business in the future. Moreover, with the tender and inquiry pipeline, it is expected the order book to be strengthened further.  

Technical Standpoint 

From a technical standpoint, the stock is trading above all the short and long-term moving averages. At the same time, there is a desired sequence. The daily 14 periods RSI has generated a bullish signal moving above its nine periods average thus validating positive bias. The daily MACD has generated a bullish crossover thus validating positive bias. 

Future Growth Drivers 

The company is constantly working to strengthen its footprint in the market through their product portfolio, which is being nurtured by QoQ. Apart from that, the company is diligently working to enhance its dealer and retailer network for better penetration, especially in Tier 2 and Tier 3 markets. Currently, the company has over 45,000-plus registered retailers and over 900 authorized dealers. 

In the future, the company’s growth strategy is centred on increasing market share, generating healthy profits, acquiring new customers and penetrating further into promising markets. They are doing this by introducing greater operational and financing efficiencies within their business.