Hind Rectifiers Ltd reported a strong set of financials for the fourth quarter of FY24, with both profitability and operational efficiency showing significant improvement. The company’s net profit rose by an impressive 96% year-on-year, coming in at ₹10 crore compared to ₹5.1 crore in Q4 FY23. The bottom-line growth was driven by solid revenue traction and margin expansion across its product segments in the power electronics and railway equipment verticals.
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Revenue for the quarter stood at ₹185 crore, up 22.2% from ₹151.4 crore in the same period last year. This growth in topline was accompanied by a healthy rise in operating profit. EBITDA increased 47.8% year-on-year to ₹19.8 crore, and the EBITDA margin improved to 10.7%, compared to 8.9% a year ago, indicating better cost management and improved scale benefits.
The company has shown a consistent growth trend over recent years. Over the last three years, it has delivered a profit CAGR of 69% and a sales CAGR of 20.8%. Its return on equity (ROE) stood at a solid 26.2% for FY24, while return on capital employed (ROCE) was 21.7%, suggesting strong capital efficiency. The company also recorded a return on assets of 9.96% for the year, backed by a low debt-to-equity ratio of 1.03 and zero pledged promoter shares.
At the current market price of ₹970, Hind Rectifiers is trading at a P/E ratio of 44.8, closely aligned with the industry average of 45.2. The stock commands a premium valuation with a price-to-book value of 10.4, compared to the industry PBV of 6.46. The high Altman Z Score of 9.51 indicates strong financial stability and low bankruptcy risk. Despite a small dividend yield of 0.13%, investors continue to show interest in the stock due to its long-term growth story and consistent performance.
The stock has delivered impressive returns over time, with a 3-year CAGR of 69% and a 5-year CAGR of 50%. Its one-year return stands at 33%, underlining the strong market confidence in its future growth trajectory. Free cash flow stood at ₹14.2 crore for FY24, while the 3-year cumulative FCF totaled ₹38 crore, showcasing healthy cash generation.
On the shareholding front, promoter holding has remained stable at 43.98%, with no pledging. Foreign institutional ownership has inched up to 6.03%, while public shareholding stands at approximately 50%, indicating balanced participation between retail and institutional investors.
With robust earnings growth, improving operating margins, and high return ratios, Hind Rectifiers continues to emerge as a solid mid-cap performer in the power electronics and railway infrastructure segment.
Disclaimer
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