Hind Rectifiers Ltd (Hirect)

Hind Rectifiers Ltd (Hirect)

Buy at :      Near by 1000

Stop Loss:  950

Target :      1220

Hind Rectifiers Ltd (Hirect) - Fundamental Analysis and Latest News

Hind Rectifiers Ltd (Hirect) has been a key player in the Indian industrial landscape since its incorporation in 1958. The company specializes in the design, development, and manufacture of power semiconductor devices, power electronic equipment, and railway transportation equipment. It serves a diverse range of industries, including railways, electrochemical plants, and power generation.

Fundamental Overview

• Market Cap: ₹1,665 crore as of October 2024, placing it in the small-cap category.
• Revenue: The company generated ₹555.50 crore in revenue over the last 12 months.
• Earnings: Net earnings stood at ₹17.54 crore.
• Debt: Hirect has a total debt of ₹128.93 crore, though the company’s liquidity is considered high.
• PE Ratio: 68.85x, which suggests a premium valuation, possibly indicating strong growth expectations.
• PB Ratio: 13.36x, considerably above peers, suggesting the stock is priced at a significant premium to its book value.
• Dividend: A modest dividend yield of 0.12% with a recent payout of ₹1.20 per share.
• Share Performance: Over the past year, the stock has surged by 160%, reflecting strong investor confidence. It recently hit a 52-week high of ₹1,013, though it's currently trading around ₹970​.

Recent News

Today, Hind Rectifiers' stock is trending upwards, reflecting a robust market performance. On October 16, 2024, the stock hit ₹970.85 on the NSE, up by 10% from the previous day. The rally could be due to the company's consistent order inflows, particularly from Indian Railways, and positive investor sentiment surrounding its growing role in infrastructure projects​.

Outlook

Hind Rectifiers is well-positioned for future growth, especially with its focus on power electronics and transportation equipment, which aligns with India's increasing focus on infrastructure development and electrification of railways. However, investors should consider the high valuation ratios, indicating that the stock may already price in significant future growth.