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HBL ENGINEERING LTD (HBLENGINE) Fair Value & Analysis

Industrials · IN · Market cap ₹228B

HE HBL ENGINEERING LTD HBLENGINE · NSE
Price₹678.50
Fair Value₹539.47
Upside-20.5%
Quality81/100
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Healthy Growth
Highly profitable · 24.7% net margin
Low debt · generates free cash flow
0.36% dividend yield
Ranks above peers (10/14)
Wide moat 80/100
Evidence: High Range ₹390.58 – ₹1,311 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 3 days ago

Share price −10.1% over the past month.

A strong business, but screening 20% overvalued on our models.

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What matters now

  • A high-quality business (quality 81/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The model range is unusually wide (₹390.58 to ₹1,311). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

₹1,096 ₹30.36 Fair Value ₹539.47 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹30.36 – ₹1,096 · fair‑value band ₹390.58 – ₹1,311 · the ₹678.50 price screens above the ₹539.47 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

HBL ENGINEERING LTD (HBLENGINE) currently trades at ₹678.50, while our model-based Fair Value estimate is ₹539.47, implying the stock looks roughly 20.5% overvalued today. The Quality Score stands at 81/100 (high quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, HBL ENGINEERING LTD generated revenue of ₹33.0B at a net margin of 24.7%. Revenue grew 27.0% year over year. It earns a return on equity of 44.1%. The balance sheet holds a net cash position of ₹4.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹390.58 (bear case) to ₹1,311 (bull case); at ₹678.50, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 39% below its 52-week high and 23% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -65% fair-value upside, at -20%, HBLENGINE screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹387.90 ₹787.02 ₹1,457 80
Residual Income ₹272.03 ₹444.90 ₹7,778 76
Rev-Margin DCF ₹268.53 ₹445.45 ₹817.33 74
All 26 models by family
DCF Models
FCF DCF ₹410.36 ₹649.56 ₹1,432 38
Owner Earnings ₹449.09 ₹1,026 ₹2,290 31
5Y Revenue Exit ₹246.16 ₹391.55 ₹694.16 39
5Y EBITDA Exit ₹424.33 ₹751.95 ₹1,395 41
5Y P/E Exit ₹479.60 ₹1,079 ₹1,902 38
10Y Revenue Exit ₹289.59 ₹566.62 ₹728.15 36
10Y EBITDA Exit ₹429.71 ₹959.34 ₹1,891 37
10Y P/E Exit ₹470.96 ₹1,081 ₹2,098 35
Earnings-Based
Graham-Dodd ₹199.90 ₹1,394 ₹1,956 54
Lynch FV ₹720.24 ₹1,029 ₹1,338 50
PEG = 1.0 ₹720.24 ₹1,029 ₹1,338 46
EPV ₹302.98 ₹352.96 ₹397.38 59
Dividend Discount
Gordon GGM ₹28.86 ₹63.00 ₹106.00 70
DDM Multi-Stage ₹28.86 ₹51.61 ₹65.66 61
Multiples
P/E Multiple ₹463.01 ₹617.35 ₹771.69 63
P/S Multiple ₹178.73 ₹238.30 ₹297.88 58
P/B Multiple ₹269.60 ₹359.46 ₹449.33 55
EV/EBIT ₹508.41 ₹671.30 ₹834.18 53
EV/EBITDA ₹411.25 ₹541.74 ₹672.23 54
EV/Revenue ₹169.90 ₹234.24 ₹298.58 43
Asset-Based
NCAV (Graham) ₹39.94 ₹53.52 ₹79.88 50
Growth DCF
Growth DCF ₹387.90 ₹787.02 ₹1,457 80
Rev-Margin DCF ₹268.53 ₹445.45 ₹817.33 74
Economic Profit
Residual Income ₹272.03 ₹444.90 ₹7,778 76
ROIC Compounder ₹381.90 ₹571.93 ₹830.63 72
Growth Earnings
Growth-Adj P/E ₹942.08 ₹1,346 ₹1,750 68

Widest divergence: Growth Earnings (₹1,346) versus Dividend Discount (₹51.61). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹33.0B
Revenue growth (YoY) +27.0%
Net margin 24.7%
Return on equity 44.1%
Free cash flow ₹6.1B FY2026
P/E ratio 23.1
More key figures
Operating margin 9.9%
EPS (TTM) ₹29.36
Dividend yield 0.4%
EPS growth (YoY) +39.8%
Net cash ₹4.9B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 81/100

Of which business quality 80 · Market factors (momentum, volatility) 47

Profitability 97
Margins and returns on capital today
Quality Growth 100
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 29
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

HBL Engineering Limited manufactures and sells batteries and other products in India and internationally. It operates through Industrial batteries, Defense and Aviation batteries, and Electronics segments. The company offers lead acid batteries, nickel-cadmium batteries, silver zinc batteries, defence, and lithium batteries.

Full company description

HBL Engineering Limited manufactures and sells batteries and other products in India and internationally. It operates through Industrial batteries, Defense and Aviation batteries, and Electronics segments. The company offers lead acid batteries, nickel-cadmium batteries, silver zinc batteries, defence, and lithium batteries. It also provides rail signaling electronics, electronic fuzes for ammunition, train collision avoidance systems, train management system, and electric drive trains. The company serves system integrators, EPC's, railway, aviation, and defense companies, as well as government sector. The company was formerly HBL Power Systems Limited and changed its name to HBL Engineering Limited in November 2024. The company was founded in 1977 and is headquartered in Hyderabad, India. HBL Engineering Limited is a subsidiary of Aluru Family Private Trust.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

HBL ENGINEERING LTD reported revenue of ₹33.0B in FY2026 versus ₹12.1B in FY2022, a compound +28.5%/yr. Reported net income was ₹8.1B in FY2026, compounding +71.6%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹33.0B
Latest YoY
+69.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+34.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+29.9%
Revenue +28.5%/yr
FY22 ₹12.1B
FY23 ₹13.6B
FY24 ₹22.2B
FY25 ₹19.5B
FY26 ₹33.0B
Net income +71.6%/yr
FY22 ₹939M
FY23 ₹987M
FY24 ₹2.8B
FY25 ₹2.8B
FY26 ₹8.1B

HBLENGINE screens 20% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "HBL ENGINEERING LTD Fair Value". https://www.fairvalue-calculator.com/stock/HBLENGINE

Peer Group

Electrical Equipment & Parts · 527 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 81 · Top 25%
Fair Value upside −21% · Above median
Return on equity (TTM) 44% · Top 25%
Return on assets 27% · Top 25%
Net margin (TTM) 25% · Top 25%
Operating margin (TTM) 10% · Above median
Revenue growth 27% · Above median
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 23.1× · Cheaper than median
P/B 10.31× · Pricier than 75% of peers
P/S (TTM) 6.91× · Pricier than 75% of peers
P/FCF 0.4× · Cheaper than 75% of peers
EV/EBITDA 20.1× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 6 · sector 0
FUTURE 100 · sector 57
PAST 100 · sector 26
HEALTH 100 · sector 97
DIVIDEND 7 · sector 23

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 -40%
Delta Electronics (Thailand) Public Company DELTA 269.00 THB 40.28 THB -85%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW -45%
WEG S.A WEGE3 14,900 ARS 4,338 ARS -71%
Sungrow Power Supply Co 300274 ¥117.53 ¥123.83 +5%
HD Hyundai Electric Co 267260 782,000 KRW 371,133 KRW -53%
LS ELECTRIC Co 010120 208,500 KRW 29,594 KRW -86%
Hyosung Heavy Industries Corporation 298040 2,892,000 KRW 1,013,099 KRW -65%
Hitachi Energy India Limited POWERINDIA ₹35,800 ₹6,106 -83%
Polycab India Limited POLYCAB ₹9,289 ₹3,218 -65%

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Frequently asked questions

Is HBL ENGINEERING LTD (HBLENGINE) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹539.47 versus a price of ₹678.50, about −20% (overvalued).
What is the fair value of HBLENGINE?
Our model-based fair value for HBL ENGINEERING LTD is ₹539.47 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹678.50.
What is the quality score of HBLENGINE?
HBL ENGINEERING LTD has a Quality Score of 81/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of HBL ENGINEERING LTD (HBLENGINE)?
HBL ENGINEERING LTD reported trailing-twelve-month revenue of about ₹33.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of HBLENGINE?
The net profit margin of HBL ENGINEERING LTD is about 24.7%, meaning it keeps roughly 24.7% of revenue as net income. Based on the latest reported figures.
Does HBL ENGINEERING LTD pay a dividend?
HBL ENGINEERING LTD currently shows a dividend yield of about 0.36% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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