HPL Electric and Power share price skyrockets 37% in just five sessions; should you buy?

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₹287.20 apiece, taking the stock's overall five-day gain to 37%. This stellar rally came after domestic brokerage firm ICICI Direct Research maintained an optimistic outlook on the company, owing to robust growth in the smart meters segment.

Also Read 2023 in Review: All 13 Maharatna stocks delivered positive returns last year, REC best performer; check full list Incorporated in 1992, the company is among India’s leading electric equipment manufacturers, with a formidable presence across two major segments: metering and systems and consumer and electrical. In the metering & systems segment (which is largely institutional and B2B), the company is involved in the manufacturing of smart and conventional metres, while in the consumer & electrical segment (which is largely B2C), it is engaged in three sub-segments: switchgear, LED (light-emitting diode) lighting, and wires & cables.

Well-positioned to capture a significant share in enduring 'Smart Meters' opportunity: The brokerage believes that the ‘metering & systems’ segment will be the key growth-driving segment for HPL in the coming period, as the Indian government is targeting to install 25 crore smart meters nationwide with the ambition of firming the transmission & distribution network and reducing distribution losses. Also Read: SBI, TCS, JSW Energy and more: SMC Global lists top 10 stock picks for 2024 With an annual meter capacity of 11 million units (utilisation at 70–75%), the brokerage said the company commands the market leader position in the domestic electric meters market with a 20% market share.

The company's order backlog, which stands at over ₹2,000 crore (with over 70% contributed by smart meters), ensures medium-term revenue visibility, it noted. Strong