HPL Electric & Power Ltd IPO Message Board (Page 22)

12. MUDIT NATANI |   Link | Sep 16, 2016 12:03:53 PM
Sir @ modulator the page of this Ipo is available on the potion available on your home page at curreent mainline ipo but not seen at choose ipo. I think now you understand what I want to say.
Forum Modulator
12.1. Forum Modulator |   Link | Sep 16, 2016 6:51:07 PM
Thank you Mr Mudit,

We found the problem and resolved it. We will ensure that it doesn''t happen again.

Thank you, Team

Thank you, Forum Moderator

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jay sardar
11. jay sardar |   Link | Sep 16, 2016 11:01:12 AM
11.1. SHAR KHAN |   Link | Sep 16, 2016 4:34:53 PM
10. Mahadev |   Link | Sep 16, 2016 9:56:50 AM
I think its not good IPO because there is more and more electric equipment making company and even infra company not growth there is also no growth.....its logic behind ...of it...
9. Priya |   Link | Sep 16, 2016 1:54:33 AM
I have seen RKS copying the content from this site and posting on different sites. He hates this forum but still can not stop himself to check it every day :)
9.1. ARATII |   Link | Sep 16, 2016 2:46:25 PM

8. Septa |   Link | Sep 16, 2016 12:10:05 AM
IPO Guru IPO Guru (4000+ Posts, 4600+ Likes)
MC post IPO will be 1300 Cr approx compare to Havells India this a very small company Havells MC is close to 26000 Cr so 20 times small
Return on Net Worth is around 10% not great
Havells RONW is close to 50%
NP is 36.6 Cr so asking a PE of 35.5 PE Havells India PE is 34
Fundamental this looks avoid.
My old tip orient Paper and industry loos better bet with demerger lot of value on blocking will happen
Will read the RHP and will give my final decision
other stock in this sector which i like is KEI industry it available at PE of 14 in same sector and planning on LED and other VAP production
ON first glance it looks very very expensive compare to peers
Avoid on fundamental better option is available in market in this sector

IMO havells India is not peer to peer with HPL IMO they have taken a company which is valued highly by the market to compare it self windows dressing. IMO it should have compared with other meter manufactures like salter genus L&T
pls read this article

Havell’s Pvt Ltd is not the same as Havells India Qimat ria gupta did buy the havells brand from HPL ( acronym H stands for havells)
pls read QRG biography it is good read very inspirational biography why and how he brought havells brand
Ashish Khater
8.3. Ashish Khater |   Link | Sep 16, 2016 7:45:27 AM
Top Contributor Top Contributor (400+ Posts, 300+ Likes)
Thanks septaji again...for preliminary analysis

Ashish Khater

8.4. Septa |   Link | Sep 16, 2016 3:12:25 PM
IPO Guru IPO Guru (4000+ Posts, 4600+ Likes)
"how to make valuation" Mehul CA Sahib i have no idea how to make valuation
bangalore king
7. bangalore king |   Link | Sep 16, 2016 12:02:08 AM
Top Contributor Top Contributor (400+ Posts)
HPL is a weak franchise, given: (a) market leadership in electric meters
(20% share; 43% of revenue) which is a commoditised product; Havells
exited this long back; and (b) cash conversion cycle is weak at 150 days
given SEBs form 31% of business. We have corporate governance
concerns given: (a) Group companies use Havells as part of their
corporate names against which Havells has filed a case; and (b)
worrying related-party transactions (34% of net worth over FY11-15 and
57% in 1HFY16). Switchgear and lighting portfolios are weak given
predominant presence in changeover switches that is facing market
decline and LED lamps which is a fragmented market. Our fair value of
~Rs12bn equity value (on relative benchmarking) implies ~50%
discount to peers given weak franchise.
Competitive position: WEAK Changes to this position: NEUTRAL
Leader in meters, a commoditised and relationships-based market
HPL is market leader in electric meters (43% revenue; FY15). Bulk of the
business comes from SEBs, which is a hyper-competitive (tender-based)
segment. Players like Havells have exited this business given commodity nature
and dependence on ties with people in authority. Genus and Secure are top
names in the space. Government’s smart city plans are a potential large
opportunity, but competitive intensity will hinder cash generation.
IPO to fund low-RoCE, capital-intensive business, not expansion
HPL’s FY12-15 RoCE of 11% was very low due to weak capital employed
turnover of 1.4x and working capital cycle of 150days as 31% of revenue comes
from SEBs. So, despite 17% revenue CAGR over FY11-15, PAT declined by 2%
as interest cost tripled over FY11-15. The worrisome aspect is IPO proceeds are
to be used for deleveraging (FY15 net debt:equity at 1.4x) rather than funding
capacity expansion. Utilisation presently is ~80%.
Group companies use Havells as a part of their corporate names; large
related-party transactions
Havells Private Ltd and Havells Electronics are promoter group entities doing
electrical business using Havells as a part of their corporate names. We see this
as a risk for HPL if Havells, which has filed a case against the companies for the
use of the word Havells as part of a trade mark or corporate names, wins this
case. Also, related-party transactions at 34%/57% of net worth over FY12-
15/1HFY16 are a key concern.
7.1. analog |   Link | Sep 16, 2016 8:46:04 AM
I am a reliability and warranty engineer. I have experience of using more than 1000 energy meters from HPL and i feel they are not at all reliable.
6. gamble |   Link | Sep 15, 2016 11:39:12 PM
IPO Guru IPO Guru (1600+ Posts, 3900+ Likes)

HPL electric.......

........... .... . ..2015.......2014.........2013
Revenue : 1049 cr.......1012cr......907cr
PAT........: 34.4cr........28.7cr.......31.4cr
EPS,........: 7.42.........6.20.,...........6.81
5. RT |   Link | Sep 15, 2016 11:22:32 PM
HPL''s comparison can be Havells India and V-guard Industries.
As on March 2016 :
Income wise, Havells is 5 times and V-guard is 2 times larger than HPL.
NP wise Havells is 10 times and V-guard is 3 times larger than HPL.
That''s doesn''t matter much but NP margin of HPL is very thin 3.30â„… as compare to 13.5â„… of Havell''s and 6â„… of V-guard.
However, HBL power may be a good return company on listing day looking it''s offloading approx 25â„… equity through this IPO.
5.1. RT |   Link | Sep 15, 2016 11:26:12 PM
Pl read HPL instead of HBL
4. MUDIT NATANI |   Link | Sep 15, 2016 10:54:48 PM
@ modulator why the page of HPL Electric &Power Ltd IPO disappear
Forum Modulator
4.1. Forum Modulator |   Link | Sep 16, 2016 1:42:40 AM
We cannot see it disappeared. Refresh the page once. Let us know if you are still having problem.

Thank you, Forum Moderator

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3. upendra |   Link | Sep 15, 2016 8:42:12 PM
gmp &kostak of hpl
Sunil Patel
2. Sunil Patel |   Link | Sep 15, 2016 8:36:23 PM
Top Contributor Top Contributor (400+ Posts, 200+ Likes)
Can any one provide the details of this IPO?
Sunil Patel
1. Sunil Patel |   Link | Sep 15, 2016 8:35:32 PM
Top Contributor Top Contributor (400+ Posts, 200+ Likes)
Hi Lokesh Jain,

Can you provide some initial thought on it please?