BSE Code: 517271, NSE Code: HBLPOWER
HBL Power Systems Ltd is in the business of manufacturing world’s widest range of specialized batteries since 1977, with particular focus on Aircraft batteries. Recently, they have focussed on engineered products and services and to defence and railways department for manufacturing of batteries for telecommunication, Rly-signalling, inverter batteries, UPS batteries etc. They have also diversified to manufacturing of spun pre-stressed concrete electric poles, piles, telecom towers and other spun pre-stressed concrete products, which are within the perview of ‘Green Technology products’. Their latest focus is on Solar products like Solar PV Cells and Solar roof-top panels etc., along-with Solar Pumps and carrying out projects for roof-top solar systems.
Plants of the Company are located in Shamirpet (Hyderabad), Visakhapatnam, Vizaynagar, Haridwar (Uttarakhand) and Manesar (Haryana). All plants are of different world class standards fulfilling required certifications like ISO 9001 2008, OHSAS, Intertek EU Compliance, IRIS, EASA, NABL, MNRE, UL Certificate etc.
Main clients of the Company are HAL, Indian Railways, Indian Navy, and different Oil exploring Companies, Power & Telecom Companies for back-up and starter battries. Recently they have roped in Boston with the Massachusetts Bay Transportation Authority as their client for a range of batteries with transparent, flame retardant battery cases for metro and light rail applications.
SUJALA - Solar pump: Solar pump is another upcoming market segment and with affordable technology availability (running the existing AC-3phase submersible pumps with solar through a specially designed controller). This product is becoming very popular among farmers opting for solar power in remote villages. Government bodies also are encouraging the solar pumps with suitable subsidiaries and loans.
Spun Concrete Poles - Recent development of Spun Concrete Poles is an excellent option for WIND Energy projects due to its circular form and absence of edges/angles, the magnitude of wind forces acting on it is less than on rectangular pole for the same projected area and wind forces are diffused because of circular structure. These poles are available in the height of 11-13Mtr single segment, hence can be used for double & triple circuit also.
HBL SOLAR: HBL provides SOLAR PV Roof Top systems from 1 kW to 100 kw in Off-Grid (Grid supported) and On-grid modes. It has the advantage of having all the components of the system like modules, batteries, PCU (inverter) and galvanized structure made in house and tested to the required standards. The company has got the flexibility to offer tailor made solutions to the customers with space saving module mounting structures. Further, it has an in – house Engineering team who can visit the site and suggests the best solution to fit in the budget.
HBL Rentar Fuel Catalyst – It brings multiple benefits to users while at the same time helps clean the environment of noxious emissions and harmful greenhouse gases. HBL Rentar Fuel Catalyst is a product of Rentar Environmental Solutions Inc, USA - a global leader in pre-combustion technologies, striving to provide solutions that benefit the environment significantly. HBL Rentar Fuel Catalyst enjoys several patents globally and has been proven to reduce fuel consumption and harmful emissions from furnaces, boilers and generators. It is a contact type catalyst that brings about fuel savings on liquid and gas fossil fuels like Diesel, Furnace Oil, piped Natural Gas etc, in on-road or off-road engines, and equipment like HEMM, furnaces and boilers. Savings through use of HBL Rentar Fuel Catalyst range from 2% to up to 30% while reduction in emissions is found to be up to 44%. While the investment on HBL Rentar Fuel Catalyst can be recovered within a few months, the unit continues to deliver benefits to the buyer during the rest of its long life. The life of HBL Rentar Fuel Catalyst is 100,000 working hours which is over 11 years on 24x7 basis. The performance of HBL Rentar Fuel Catalyst has been proven in test laboratories of international repute and the benefits are being enjoyed by customers across the globe on thousands of installations.
In railways, they have developed instruments and equipment like Data Loggers, Audio frequency track circuit, Electronic interlocking system, train management system, SPAD alert system, Digital axle counter, Project system, Rail system unit etc., which are modern control & safety products mostly required by the Indian Railways.
As can be seen from the above products list, the Company not only have presence in India but in America, UK, Europe and Middle-East having recently established offices in various locations. As on 31.03.2017, the company has four Subsidiaries, viz; HBL Germany GMBH, HBL America Inc, SCIL lnfracon Pvt Ltd and HBL Suntech LLP, and also has one Joint Venture Gulf Batteries Company Ltd.(Kingdom of Saudi Arabia.
Share Holding Pattern:
Year 2011 2012 2013 2014 2015 2016 2017
Total share (No. Cr) 25.30 25.30 25.30 25.30 25.30 25.30 27.72
Promoter (%) 72.47 73.62 73.83 73.93 74.06 74.13 74.24
Pledged (%) 1.04 9.07 11.19 0.01 0.00 0.00 0.00
MF (%) 1.71 1.54 1.41 0.09 5.12 7.91 8.47
Bank/Institutions (%) 0.03 0.00 0.00 0.00 0.07 0.16 0.07
FII (%) 7.63 7.66 7.01 6.94 0.18 0.06 0.04
Bodies Corporate(%) 7.54 7.08 7.09 7.41 6.88 2.74 2.02
Public (%) Balance Balance Balance Balance Balance Balance Balance
Dividend paid/declared:
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
15% 15% 30% 30% 10% 15% 15% 20% 20% 25% 25%
Financials:
Year 2011 2012 2013 2014 2015 2016 2017
Sales (Rs. Cr) 995.00 1089.50 1197.40 1280.79 1330.07 1395.70 1529.86
NP(Rs. Cr) 16.45 9.6 20.44 45.01 14.62 6.851 32.20
NPM % 1.65 0.88 1.71 3.51 1.10 0.49 2.10
EPS (Basic) 0.65 0.38 0.81 1.78 0.58 0.16 1.16
In March/17 Annual Results only the standalone figures are published because data from the subsidiaries are not received till now. In this year a loss making entity named Beaver Engineering & Holdings has been merged with the company for which a negative impact of 2.794 Crores are discounted with annual results. The company has a cash reserve of Rs.598.75 Crores as on 31-03-16 and a debt of Rs.430.10 Crores.
Due to their in-house product development with modern technologies and the Indian Govt’s initiatives for power saving, modernisation of railways and thrust on agriculture, renewable and green power etc. demand for their product is slowly growing. Increase in Annual Sales figures proves the same.
The only risk is the international price of metals like Nickel and Cadmium, which may however be passed on to the customers. The company is well established face the challange of the Century like Giants in the Indian Stock Exchanges. I think it is the miniature form of biggies like Amara Raja Batteries but diversified well with other products as per the need of the hour. By investing in this company for a long period one has hardly to lose anything because of the dividend yield which is currently 0.57%.
Disclosure: I have 2500 shares acquired at Rs.43/- per share.
