HPL Electric & Power Intrinsic Value

HPL • Consumer Goods
Current Stock Price
₹297.50
Primary Intrinsic Value
₹346.00
Market Cap
₹1904 Cr
-9.0% Downside
Median Value
₹270.63
Value Range
₹89 - ₹503
Assessment
Trading Near Calculated Value
Safety Margin
-9.9%

HPL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹346.00 ₹276.80 - ₹415.20 +16.3% EPS: ₹13.84, Sector P/E: 25x
Book Value Method asset ₹358.20 ₹322.38 - ₹394.02 +20.4% Book Value/Share: ₹143.28, P/B: 2.5x
Revenue Multiple Method revenue ₹407.81 ₹367.03 - ₹448.59 +37.1% Revenue/Share: ₹271.88, P/S: 1.5x
EBITDA Multiple Method earnings ₹502.50 ₹452.25 - ₹552.75 +68.9% EBITDA: ₹268.00Cr, EV/EBITDA: 12x
Simple DCF (5Y) dcf ₹270.63 ₹216.50 - ₹324.76 -9.0% CF Growth: 12.9%, Discount: 15%
PEG Ratio Method growth ₹89.25 ₹80.33 - ₹98.18 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹256.59 ₹230.93 - ₹282.25 -13.8% Revenue Growth: 6.0%, Adj P/E: 18.5x
ROE Based Valuation profitability ₹148.75 ₹133.88 - ₹163.62 -50.0% ROE: 9.6%, P/E Multiple: 10x
Graham Defensive Method conservative ₹211.23 ₹190.11 - ₹232.35 -29.0% EPS: ₹13.84, BVPS: ₹143.28
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

HPL Intrinsic Value Analysis

What is the intrinsic value of HPL?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of HPL Electric & Power (HPL) is ₹270.63 (median value). With the current market price of ₹297.50, this represents a -9.0% variance from our estimated fair value.

The valuation range spans from ₹89.25 to ₹502.50, indicating ₹89.25 - ₹502.50.

Is HPL undervalued or overvalued?

Based on our multi-method analysis, HPL Electric & Power (HPL) appears to be trading near calculated value by approximately 9.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 31.42 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 9.6% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 15.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.83x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹138 Cr ₹103 Cr Positive Free Cash Flow 8/10
March 2024 ₹100 Cr ₹81 Cr Positive Free Cash Flow 8/10
March 2023 ₹104 Cr ₹84 Cr Positive Free Cash Flow 8/10
March 2022 ₹101 Cr ₹81 Cr Positive Free Cash Flow 8/10
March 2021 ₹85 Cr ₹81 Cr Positive Free Cash Flow 8/10