Hind Rectifiers Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Hind Rectifiers Ltd trades at ₹1,245, in a confirmed uptrend and 14 weeks into that stage. That is +42.4% against its own 200-day average. It sits at 100% of a 52-week range of ₹604 to ₹1,245. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 26 straight weeks.

Today the stock is in a confirmed uptrend — week 14 of stage 2, confirmed. At ₹1,245 it trades +42.4% versus its 200-day average and sits at 100% of its 52-week range (₹604–₹1,245).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +1,910% while the NIFTY 500 moved +274% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 26 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 93rd percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Hind Rectifiers Ltd trades at 99.4× P/E, at the pricey end of its own range (93rd percentile). Its long-run median P/E is 64.7×, measured across 2.1 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 99.4× is at the pricey end of its own range (93rd percentile), against a long-run median of 64.7× measured over 2.1 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +21.1% against a +86.9% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Hind Rectifiers Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +390.1% at its peak to +4.0% but is still expanding, ROCE lifting at 30.1%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

55.4/100 — rank 3 of 7 in Electronics - Equipment/Components · 93% evidence confidence

Hind Rectifiers Ltd scores 55.4 out of 100 against the 7 companies it is compared with in Electronics - Equipment/Components, ranking 3. Price leads the evidence: RS versus the benchmark is 45.6%, but earnings trajectory is weak. Wait for revenue and profit confirmation.

The four contributions add to the total exactly: 11.3 + 12.7 + 12.9 + 18.5 = 55.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Hind Rectifiers Ltd reported ₹280 Cr of revenue in the Mar 26 quarter, +51.2% year on year. That is the 12th straight quarter of year-on-year growth. Over 2 years it has compounded at 38.9% a year. The last full year, FY26, came in at ₹999 Cr. The last four reported quarters add to ₹999 Cr.

Hind Rectifiers Ltd reported ₹280 Cr of revenue in the Mar 26 quarter, +51.2% year on year. That is the 12th straight quarter of year-on-year growth. Over 2 years it has compounded at 38.9% a year. The last full year, FY26, came in at ₹999 Cr. The last four reported quarters add to ₹999 Cr.

FY26 revenue came in at ₹999 Cr (+52.5% on the year), capping 2 years at 38.9% compound. The latest quarter (Mar 26) printed ₹280 Cr, +51.2% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +52.7% growth against the decade's 38.9% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +52.5% over the last 4 quarters against +38.9%/yr over the last 8 — accelerating; TTM profit +4.0% vs +74.8%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 3.0% this quarter (−7.7 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Hind Rectifiers Ltd's operating margin is 3.0% in the Mar 26 quarter, −7.7 percentage points against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 9.0% to 11.0%. The current quarter is running below every full year in that window.

Hind Rectifiers Ltd's operating margin is 3.0% in the Mar 26 quarter, −7.7 percentage points against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 9.0% to 11.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 3.0%, −7.7 pp against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 9.0%–11.0%.

🚨 Why the margin moved: operating margin went −7.7 pp year on year while gross margin went −0.6 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins slipped — did that reach the bottom line? Next: profit −115.9% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Hind Rectifiers Ltd posted a net loss of ₹1.6 Cr in the Mar 26 quarter. Full-year FY26 profit was ₹39.0 Cr. The 2-year compound rate is 73.2%. That loss is 0.6% of the quarter's revenue. The same quarter a year earlier earned ₹10.0 Cr. 1 of the last 12 reported quarters were loss-making.

Hind Rectifiers Ltd posted a net loss of ₹1.6 Cr in the Mar 26 quarter. Full-year FY26 profit was ₹39.0 Cr. The 2-year compound rate is 73.2%. That loss is 0.6% of the quarter's revenue. The same quarter a year earlier earned ₹10.0 Cr. 1 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹−1.6 Cr, −115.9% year on year. On the full year, FY26 printed ₹39.0 Cr (+5.4%), and the 2-year compound rate is 73.2%.

🚨 Why profit moved: revenue contributed +51.2% and the margin −7.7 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +10.0% vs revenue +52.7%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 175% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 175% of Hind Rectifiers Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹86.0 Cr of operating cash against ₹39.0 Cr of profit. After ₹101 Cr of capital spending, ₹−15.0 Cr was left as free cash.

FY26: operating cash of ₹86.0 Cr against reported profit of ₹39.0 Cr, leaving free cash of ₹−15.0 Cr after ₹101 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 175% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 175%: the cash cycle held roughly steady between FY24 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 5.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹116 Cr of building over 2 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Hind Rectifiers Ltd's cash conversion cycle runs 105 days in FY26, down from 110 days in FY24. Capital spending ran ₹116 Cr over the last 2 years. At FY26 sales of ₹999 Cr each day of that cycle holds about ₹2.7 Cr, so roughly ₹287 Cr sits inside the business at any moment.

FY26: debtors at 90 days, inventory at 74 days — roughly 2.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 105 days, tighter than FY24's 110.

The full loop: cash goes out to suppliers and production on day 0; stock waits 74 days to sell; customers pay about 90 days after that; and suppliers themselves are paid at 59 days — netting out to the 105-day cycle.

In money terms: at FY26 sales of ₹999 Cr, each day of the cycle holds about ₹2.7 Cr — so the 105-day loop keeps roughly ₹287 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹116 Cr over the last 2 fiscal years against ₹22.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹10.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 19% and the ROIC − WACC spread is +0.3 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Hind Rectifiers Ltd earns a ROCE of 19% in FY26. Return on invested capital clears the cost of that capital by +0.3 percentage points, so growth here adds value rather than only size. The wiring behind it is 3.9% net margin on 1.51× asset turns.

FY26 ROCE is 19%.

Why the return is what it is — the wiring (FY26): 3.9% net margin × 1.51× asset turns × 3.17× balance-sheet leverage ≈ 18.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 12.3% − 12.0% = a +0.3 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 1.17.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Hind Rectifiers Ltd carries total debt of ₹245 Cr against shareholder equity of ₹206 Cr as of Mar 26, a debt-to-equity of 1.19. On the annual view that ratio went from 0.70 in FY22 to 1.19 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹245 Cr against shareholder equity of ₹206 Cr — a debt-to-equity of 1.19. On the annual view, debt-to-equity went from 0.70 (FY22) to 1.19 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Hind Rectifiers Ltd moved a full percentage point over the last two years — the register is quiet. Domestic institutions moved +0.2 points over the same window, to 0.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +0.8 points over 8 quarters to 6.6%; Domestic institutions: +0.2 points over 8 quarters to 0.2%; Promoters: −0.1 points over 8 quarters to 43.9%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Hind Rectifiers Ltd: the Z-score reads 5.52. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 5.52 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 5.52.

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