This electric and power company stock surged 20 per cent after receiving a green signal from the Ministry of Power

HPL Electric and Power has received the ‘Empanelment Certificate’ from the Ministry of Power through its arm, Rural Electric Corporation (REC).

HPL electric and power surged by 20 per cent to Rs 77.4 on Friday due to a green signal from the ministry of power. The current market cap of the company is Rs 498 crore. HPL Electric and Power has received the ‘Empanelment Certificate’ from the Ministry of Power through its arm, Rural Electric Corporation (REC). HPL Electric is approved as a bidder through tender participation for the appointment of Advanced Metering Infrastructure (AMI) Service Provider for Smart Prepaid Metering in India on a DBFOOT (Design, Build, Finance, Operate and Transfer) basis under the Revamped Distribution Sector Reform Scheme (RDSS). 

HPL is one of the few participants to receive the Empanelment Certificate after being subjected to vigorous testing carried out at the Central Power Research Institute (CPRI) laboratory. After robust positive results, the CPRI has approved HPL’s end-to-end Prepaid Smart Metering solution. 

An established manufacturer of electrical equipment in India, HPL Electric and Power produces a wide range of products for the consumer and institutional markets in the electrical equipment sector, including metering systems, switchgear, lighting equipment, and wires and cables. With a 50 per cent market share, the firm is the biggest producer of on-load change-over switches in the nation. Additionally, it holds a 20 per cent market share in the industry for electric metering products. It ranks as the fifth-largest LED producer in the nation. The company has seven well-equipped manufacturing sites in Himachal and Haryana. 

In terms of productivity breakdown: 52 per cent for metering products, 22 per cent for lighting and electronics, 19 per cent for switchgear, and 7 per cent for wires and cables. Both the B2B and B2C segments make up over 50 per cent of the company's total revenue. 

The company's FY23 Q1 results were great. The top line went from Rs 129 crore to Rs 296 crore QOQ, an increase of 129 per cent. Additionally, the operating profit increased dramatically Q0Q for FY23Q1 by 283 per cent to Rs 38 crore.