HPL Electric & Power Ltd Falls to 52-Week Low of Rs.331.2

Stock Performance and Market Context

On 20 Jan 2026, HPL Electric & Power Ltd (Stock ID: 1002662) touched an intraday low of Rs.331.2, down 2.6% from the previous close, and ended the day with a decline of 2.07%. This performance slightly outpaced the sector’s fall, as the Electric Equipment sector declined by 2.78% on the same day. Despite this relative outperformance, the stock remains well below its key moving averages, trading beneath the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained downward momentum.

The broader market environment has also been challenging. The Sensex opened flat but closed down by 352.29 points, or 0.47%, at 82,855.09, marking its third consecutive weekly decline with a cumulative loss of 3.39%. Although the Sensex remains within 4% of its 52-week high of 86,159.02, it is currently trading below its 50-day moving average, indicating a cautious market sentiment.

Long-Term Price Trends and Relative Performance

Over the past year, HPL Electric & Power Ltd’s stock has underperformed significantly, delivering a negative return of 36.09%, in stark contrast to the Sensex’s positive 7.56% gain and the BSE500’s 6.14% rise. The stock’s 52-week high was Rs.639.5, highlighting the steep decline in valuation over the last twelve months.

This underperformance is further underscored by the company’s Mojo Score of 37.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 14 Nov 2025. The company’s market capitalisation grade stands at 3, reflecting its mid-tier size within the sector.

Financial Metrics and Valuation Insights

Despite the recent price weakness, HPL Electric & Power Ltd exhibits some positive financial characteristics. The company has demonstrated healthy long-term growth, with operating profit increasing at an annualised rate of 29.28%. Additionally, the return on capital employed (ROCE) stands at a respectable 13.3%, indicating efficient use of capital relative to peers.

The stock’s valuation metrics also suggest it is trading at a discount compared to historical averages within its peer group. The enterprise value to capital employed ratio is 1.8, which is considered attractive in the context of the sector. Furthermore, the company’s profits have risen by 49.4% over the past year, despite the stock’s negative price performance, resulting in a price/earnings to growth (PEG) ratio of 0.5. This low PEG ratio typically indicates that the stock may be undervalued relative to its earnings growth.

Shareholding and Market Participation

One notable aspect of HPL Electric & Power Ltd’s market profile is the absence of domestic mutual fund holdings, which currently stand at 0%. Given the capacity of domestic mutual funds to conduct detailed research and due diligence, their lack of participation may reflect a cautious stance towards the stock’s current valuation or business outlook.

This limited institutional interest contrasts with the company’s size and sector presence, potentially contributing to the stock’s subdued performance relative to the broader market and its peers.

Sectoral and Market Dynamics

The Other Electrical Equipment sector, to which HPL Electric & Power Ltd belongs, has faced headwinds recently, with a sectoral decline of 2.78% on the day the stock hit its 52-week low. This sectoral weakness, combined with the broader market’s cautious tone, has compounded pressure on the stock price.

While the Sensex remains near its 52-week high, the index’s recent three-week decline and trading below its 50-day moving average suggest a period of consolidation and selective investor caution, which has likely influenced stocks like HPL Electric & Power Ltd more acutely.

Summary of Key Data Points

To summarise, HPL Electric & Power Ltd’s stock has reached a new 52-week low of Rs.331.2, reflecting an extended period of price decline amid sectoral and market pressures. The stock’s performance over the last year has been notably weaker than the broader market indices, with a 36.09% loss compared to the Sensex’s 7.56% gain.

Financially, the company shows solid profit growth and attractive valuation metrics, including a ROCE of 13.3% and a PEG ratio of 0.5, suggesting underlying operational strength despite the price weakness. However, the absence of domestic mutual fund holdings and the stock’s position below all major moving averages highlight ongoing challenges in market sentiment.

Sectoral declines and a cautious broader market environment have contributed to the stock’s recent performance, with the Electric Equipment sector falling 2.78% on the day the stock hit its low. The Sensex’s own three-week decline and trading below its 50-day moving average further contextualise the pressures faced by HPL Electric & Power Ltd.

Unlock special upgrade rates for a limited period. Start Saving Now →