Company Overview
Founded in 1958, Hind Rectifiers Ltd. (HIRECT) is a power electronics and railway traction equipment manufacturer. Its portfolio includes converters, inverters, rectifiers, and traction transformers. With plants in Mumbai, Nashik, and Dehradun, HIRECT supplies mainly to Indian Railways and select industrial customers.
Price Performance
| Time |
Hind Rectifiers |
Nifty50 Returns |
Sensex Returns |
Industry Returns |
Sector Returns |
| 1 Day |
5% |
0.27% |
0.26% |
-0.48% |
-0.18% |
| 1 Week |
11.54% |
0.87% |
0.81% |
12.04% |
0.35% |
| 1 Month |
-4.97% |
1.96% |
1.45% |
15.58% |
3.43% |
| 3 Months |
33.57% |
-0.65% |
-1.42% |
14.23% |
13.4% |
| 6 Months |
90.7% |
10.14% |
8.96% |
50.94% |
57.42% |
| 1 Year |
92.13% |
-0.05% |
-0.2% |
67.75% |
16,128.6% |
| 3 Year |
919.77% |
39.57% |
35.74% |
441.09% |
24,963.1% |
| 5 Years |
1,279.74% |
119.51% |
111.18% |
1,962.26% |
7,164.24% |
| 10 Years |
2,439.4% |
223.12% |
220.01% |
1,700.13% |
23,374.05% |
4-Year Audited Financial Performance (Consolidated)
| Year (₹ Cr) |
Revenue |
EBITDA |
PAT |
EPS (₹) |
| FY21 |
305.10 |
19.90 |
5.33 |
3.22 |
| FY22 |
372.10 |
22.53 |
7.80 |
4.71 |
| FY23 |
528.42 |
43.06 |
19.86 |
11.50 |
| FY24 |
655.45 |
72.19 |
37.39 |
21.64 |
✅ CAGR (FY21–FY24):
-
Revenue ~29%
-
EBITDA ~52%
-
PAT ~92%
Clear evidence of scaling with improving margins.
Latest Quarterly Momentum (Q1 FY26)
-
Revenue: ₹214.8 Cr (+58% YoY)
-
EBITDA: ₹24.2 Cr (margin ~11.3%)
-
PAT: ₹12.77 Cr (+85% YoY)
-
Order Book: All-time high (~₹1,025 Cr+)
🚀 Strong growth visibility — supported by Indian Railways modernization.
Balance Sheet & Cash Flow
-
Debt (FY24): ₹164 Cr (Net debt-to-equity ~1.0x)
-
Cashflow: OCF improving but working capital intensive.
-
Receivables: Elevated due to tender-based billing cycles.
Peer Comparison
| Company |
P/E |
EV/EBITDA |
EBITDA Margin |
Focus Area |
| HIRECT |
~70–80x |
~40x |
11% |
Traction & power electronics |
| ABB India |
~80x |
~50x |
12–14% |
Automation & electrification |
| Siemens India |
~90x |
~55x |
13–15% |
Rail infra & automation |
| BEL |
~50x |
~35x |
20%+ |
Defence electronics |
| Titagarh Rail |
~45x |
~30x |
12–14% |
Rolling stock |
⚠️ HIRECT trades at premium valuations despite being smaller in scale.
Industry Tailwinds
-
Railway electrification: Near-total network electrification (~98% by 2025).
-
Capex push: Union Budget keeps allocating record sums to railway modernization.
-
Export potential: Asia & Africa traction demand rising.
Risks
-
Valuation risk: P/E >70x leaves no margin for error.
-
Customer concentration: Indian Railways is dominant buyer.
-
Working capital: Large receivables tie up funds.
-
Execution: Tender delays/cancellations can hurt.
-
Competition: Siemens, ABB, Titagarh are strong peers.
Management & Strategy
-
Promoter holding: ~44%
-
Recent upgrade: CRISIL to BBB+/Stable (Sep 2025)
-
Strategic focus: Propulsion systems, exports, and new capacity.
-
Corporate action: Warrants issue (July 2025) to raise funds for capex/WC.
Technical Snapshot (Sep 2025)
-
CMP: ₹1,728
-
Market Cap: ₹2,970 Cr
-
52-week High/Low: ₹1,850 / ₹850
-
Stock in an extended uptrend, consolidating post highs.
Investment Thesis (Quick Take)
✅ Why Buy: Strong order book, sector tailwinds, margin expansion.
⚠️ Why Avoid: Very high valuation, dependence on tenders, WC stress.
🔎 What to Monitor: Order inflows, propulsion system trials, margin trajectory.
DCF-Based Valuation (3-Year Scenarios)
Assumptions:
-
Discount rate = 12%
-
Terminal growth = 4%
| Case |
Rev CAGR |
EBITDA Margin |
PAT CAGR |
Fair Value Range (₹/share) |
| Conservative |
12% |
10% |
12–13% |
1,050–1,150 |
| Base |
18% |
11–12% |
~20% |
1,450–1,600 |
| Aggressive |
25% |
12.5–13% |
~28–30% |
2,100–2,250 |
📌 At CMP ~₹1,728, the stock is already pricing in Base-to-Aggressive outcomes.
Final Word
Hind Rectifiers (HIRECT) is at a growth inflection point, backed by railway electrification and an expanding order book. But with valuations stretched, investors must be cautious and track quarterly execution closely. Best suited for long-term investors who can tolerate volatility.
Discalimer!
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