HBL Engineering Ltd (HBLENGINE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Craftsman Auto

HBL Engineering

ZF Commercial

CIE Automotive

Asahi India Glas

Motherson Wiring

Sona BLW Precis.

Sundram Fasten.

Exide Inds.

Amara Raja Ener.

Belrise Industri

Why is HBL Engineering Ltd ?

Company has a low Debt to Equity ratio (avg) at 0.01 times

Healthy long term growth as Net Sales has grown by an annual rate of 25.02% and Operating profit at 105.91%

With a growth in Net Profit of 174.22%, the company declared Outstanding results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
NET SALES(9M) Higher at Rs 2,300.25 cr
PAT(9M) Higher at Rs 596.36 Cr
PBDIT(Q) Highest at Rs 544.05 cr.

With ROE of 33.3, it has a Very Expensive valuation with a 11.3 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.13%, its profits have risen by 90.6% ; the PEG ratio of the company is 0.4

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 2.56% over the previous quarter and collectively hold 7.76% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HBL Engineering should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is HBL Engineering for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

HBL Engineering

26.75%

0.50

52.22%

Sensex

4.89%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.02%

EBIT Growth (5y)

105.91%

EBIT to Interest (avg)

26.23

Debt to EBITDA (avg)

0.42

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.37

Tax Ratio

25.73%

Dividend Payout Ratio

10.01%

Pledged Shares

Institutional Holding

7.76%

ROCE (avg)

21.85%

ROE (avg)

18.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

11.32

EV to EBIT

25.77

EV to EBITDA

24.47

EV to Capital Employed

12.59

EV to Sales

8.09

PEG Ratio

0.38

Dividend Yield

0.12%

ROCE (Latest)

48.84%

ROE (Latest)

33.30%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

38What is working for the Company

NET SALES(9M)

Higher at Rs 2,300.25 cr

PAT(9M)

Higher at Rs 596.36 Cr

PBDIT(Q)

Highest at Rs 544.05 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 44.49%

PBT LESS OI(Q)

Highest at Rs 528.43 cr.

EPS(Q)

Highest at Rs 13.97

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for HBL Engineering

Net Sales - Quarterly

At Rs 1,222.90 cr has Grown at 138.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 512.22 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 528.43 cr has Grown at 414.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 102.77 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 405.02 cr has Grown at 372.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 85.78 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,222.90 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 544.05 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 44.49%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 528.43 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 405.02 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 13.97

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)