HBL Engineering Ltd.
NSE: HBLENGINEHBL Engineering Ltd.: A 30-second snapshot
HBL Engineering (₹771.95) has delivered 65.4% price appreciation over the past 12 months yet sits 31% below its 52-week high and below its 200-DMA of ₹800.17, with RSI of 47 in neutral territory. The company reports a 25.1% profit margin, 94% five-year revenue growth, and 244% five-year earnings growth, but carries a debt-to-equity of 4.40 with a rising debt trend. At PE of 26.9, it is the most affordably valued stock among its six-peer infrastructure group, where peers range from PE 33 to 109.
P/E
26.9
Forward P/E
—
ROE
—
Debt / Equity
4.40
Profit Margin
+25.1%
Div. Yield
+0.3%
5Y ROE > 15%
2/5
5Y FCF > 0
3/5
Quality
57/100
News
1 headlines · 0 positive · 0 negative
Recent context
- ·The sole news headline in the dataset (Business Standard, 7 May 2026) references HBLENGINE among an analyst's technical chart picks with a price target — no operational or earnings news was captured, and coverage volume is too thin to derive a reliable sentiment signal.
- ·At ₹771.95, the stock sits in a corridor between support at ₹690.62 and the first resistance cluster at ₹814.90–₹832.50, with RSI at 47 indicating no momentum extreme in either direction.
- ·Three-month price change of -0.81% reflects near-flat performance over the recent quarter despite the strong 12-month gain, consistent with the stock consolidating below its 200-DMA after a sharp prior advance.
Strengths
- +PE of 26.9 is the lowest among the 6-stock infrastructure peer set (peers: L&T 33.4, BEL 52.0, Cummins 66.5, ABB 87.1, CG Power 108.6), representing a 19–75% discount to those names on this metric.
- +Five-year revenue growth of 94% and earnings growth of 244% indicate significant scale-up over the period, with profit margin currently at 25.1%.
- +Quality score of 58 ranks 1st of 6 peers in the infrastructure group (peers range 24–57), suggesting relative standing on composite quality metrics.
- +One-year price return of 65.4% materially outpaces the zero or unreported 1-year returns visible across the five peer companies in this dataset.
Weaknesses
- −D/E of 4.40 with a rising debt trend is a material capital-structure concern for a non-financial engineering company; FCF was positive in only 3 of the available historical years, limiting the buffer against debt-service pressure.
- −ROE history shows only 2 years above 15% in available data, and current ROE is not reported — limiting the ability to assess whether high margins are converting into returns on equity.
- −Stock has been below the 200-DMA (₹800.17) and is 31% off its 52-week high, indicating the medium-term trend has been negative despite near-term recovery above the 50-DMA.
- −Consistency score of 64 and limited FCF positivity years suggest earnings and cash flow have not been uniform over the historical period, complicating extrapolation of recent growth rates.
Open questions
- ?What is the composition of the D/E of 4.40 — how much is working-capital debt versus long-term project financing, and what are the repayment timelines relative to current operating cash flows?
- ?Is the 244% five-year earnings growth reflective of a structural change in business mix (e.g., defence or power-sector contract wins), or does it stem from a low base in one or two years that may not recur?
- ?How does HBL Engineering's 25.1% profit margin compare across different reporting periods — has it been stable, expanding, or contracting over the past four to five years?
- ?Given that the stock is below the 200-DMA and 31% off its 52-week high despite strong annual return, what specific catalysts or milestones would a fundamental analyst point to as inflection tests for the next 12 months?
Peer comparison: Infrastructure
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HBLENGINE | HBL Engineering Ltd.You're viewing | 26.9 | — | 58 |
| Industry avg | across 5 peers | 69.5 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.0 | — | 57 |
| ABB | ABB India Ltd. | 87.1 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.6 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹771.95
SMA 50
₹729.78
SMA 200
₹800.17
RSI (14)
47.4 (neutral)
From 52w high
-31.0%
1Y return
+65.4%
3M return
-0.8%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 4.40 is well above typical thresholds for a non-financial engineering company; combined with a rising debt trend and only 3 of available years showing positive FCF, this raises material capital-structure and solvency questions.
- mediumStock is 31.0% below its 52-week high and below the 200-DMA (₹800.17) despite trading above the 50-DMA (₹729.78), reflecting a mid-term downtrend that has partially recovered over the near term.
- mediumROE data is unavailable; only 2 years in the available history recorded ROE above 15%, limiting assessment of whether the 25.1% reported profit margin translates into durable shareholder returns.
- lowNews dataset contains only 1 article — insufficient to assess sentiment reliability or identify material developments; sentiment assessment should be treated as unreliable for this stock.
Cross-section contradictions
- 5-year revenue growth of 94% and earnings growth of 244% are exceptional, yet the consistency score is 64 and ROE cleared the 15% bar in only 2 of available years — suggesting growth may be lumpy or base-period driven rather than durable.
- Profit margin of 25.1% is high for an infrastructure/engineering peer set, yet D/E of 4.40 with a rising debt trend indicates the business is heavily externally financed despite apparently strong earnings — the source and structural sustainability of these margins is unclear.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 16 May 2026 · rotates through NIFTY 500 every ~5 days