This smallcap stock has rallied 121% thus far in CY24; zoomed 148% in CY23

HPL Electric & Power hit a new high of Rs 548.80, rallied 17% in Wednesday's intra-day trade after the company received work orders worth Rs 2,101 crore for the supply of smart meters.

Shares of HPL Electric & Power (HPL) hit a new high of Rs 548.80, as they rallied 17 per cent on the BSE in Wednesday’s intra-day trade after the company received work orders worth Rs 2,101 crore for the supply of smart meters.

“The company has received Work Orders/Letter of Award of Rs 2,100.71 crore (inclusive of tax) from our regular leading customers for the supply of smart meters in the normal course of business, which is to be executed as per the terms & conditions of Letter of Award (LoA)/work orders,” HPL said in an exchange filing.

With today’s rally, the market price of this smallcap company has bounced back 59 per cent from its previous month low of Rs 344.30 touched on June 5. Thus far in the calendar year 2024, the stock price of HPL has more-than-doubled or zoomed 121 per cent, as compared to a near 11 per cent rise in the BSE Sensex. In the previous calendar year 2023, the stock had skyrocketed 148 per cent, as against 19 cent gain in the benchmark index.

At 10:15 am; HPL was trading 16 per cent higher at Rs 542.60, as compared to 0.30 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped over four-fold. A combined 4.57 million shares representing 7.1 per cent of total equity of HPL Electric changed hands on the NSE and BSE.

Meanwhile, on Monday, July 8, HPL said it signed a Memorandum of Understanding (MOU) with Guangxi Ramway Technology Co. Ltd, China for local manufacturing under phased manufacturing/ technical tie-up/ procurement for the assembly of relay/latching relays in India.

HPL is an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, including metering solutions, switchgear, lighting equipment, wires, and cables, catering to consumer and institutional customers in the electrical equipment industry.

Programmes such as the Revamped Distribution Sector Scheme (RDSS), National Smart Grid Mission (NSGM) and Integrated Power Development Scheme (IPDS) require installation of smart metering to strengthen the transmission and distribution network and reduce distribution losses. The Ministry of Power’s plan to install 250 million smart meters opportunity - reflects the commitment to energy efficiency and modernization, HPL said.