High Energy Batteries (India) 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.

High Energy Batteries (India) Ltd trades at ₹596, in a confirmed uptrend and 4 weeks into that stage. That is +2.9% against its own 200-day average. It sits at 77% of a 52-week range of ₹500 to ₹625. On relative strength it has no relative-strength read yet.

Today the stock is in a confirmed uptrend — week 4 of stage 2, confirmed. At ₹596 it trades +2.9% versus its 200-day average and sits at 77% of its 52-week range (₹500–₹625).

Against the market, two honest reads. Cumulative: over the last 4 months the stock moved +14% while the NIFTY 500 moved +0% — ahead of the index over the full window. Recent form: no trailing-13-week read yet — 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.

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.

High Energy Batteries (India) Ltd trades at 39.0× P/E, at the pricey end of its own range (75th percentile). Its long-run median P/E is 25.9×, measured across 9.2 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 39.0× is at the pricey end of its own range (75th percentile), against a long-run median of 25.9× measured over 9.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

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

Stage: Deteriorating 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).

High Energy Batteries (India) Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue and profit growth are shrinking (revenue growth −40.5% latest (single-quarter readings) against +81.6% at its 12-quarter best), ROCE slipping at 20.0%. The read is built from 10 quarters across 3 curves, on partial evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

42.1/100 — rank 11 of 14 in Aerospace and Defence Equipment · 67% evidence confidence

High Energy Batteries (India) Ltd scores 42.1 out of 100 against the 14 companies it is compared with in Aerospace and Defence Equipment, ranking 11. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 5.3 + 14.9 + 12.1 + 9.8 = 42.1. 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.

High Energy Batteries (India) Ltd reported ₹7.9 Cr of revenue in the Jun 26 quarter, −40.5% year on year. Over 10 years it has compounded at 13.8% a year. The last full year, FY26, came in at ₹84.0 Cr. The last four reported quarters add to ₹78.1 Cr.

FY26 revenue came in at ₹84.0 Cr (+3.7% on the year), capping 10 years at 13.8% compound. The latest quarter (Jun 26) printed ₹7.9 Cr, −40.5% year on year.

Pace check: the last four quarters averaged +10.6% growth against the decade's 13.8% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +1.5% over the last 4 quarters against +4.3%/yr over the last 8 — stabilising; TTM profit −3.5% vs −4.8%/yr — stabilising.

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.

High Energy Batteries (India) Ltd's operating margin is −26.5% in the Jun 26 quarter, −32.1 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −29.0% to 39.0%. The current quarter sits inside that band.

The latest quarter's operating margin is −26.5%, −32.1 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −29.0%–39.0%.

🚨 Why the margin moved: operating margin went −32.1 pp year on year while gross margin went −2.3 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

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

High Energy Batteries (India) Ltd posted a net loss of ₹1.8 Cr in the Jun 26 quarter. Full-year FY26 profit was ₹15.0 Cr. That loss is 23.1% of the quarter's revenue. The same quarter a year earlier earned ₹0.8 Cr. 1 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹−1.8 Cr, −333.3% year on year. On the full year, FY26 printed ₹15.0 Cr (+0.0%).

🚨 Why profit moved: revenue contributed −40.5% and the margin −32.1 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +75.2% vs revenue +10.6%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

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 89% of High Energy Batteries (India) Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹14.0 Cr of operating cash against ₹15.0 Cr of profit. After ₹4.0 Cr of capital spending, ₹10.0 Cr was left as free cash.

FY26: operating cash of ₹14.0 Cr against reported profit of ₹15.0 Cr, leaving free cash of ₹10.0 Cr after ₹4.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 89% 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 89%: the cash cycle stretched 272 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 2.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

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).

High Energy Batteries (India) Ltd's cash conversion cycle runs 699 days in FY26, up from 427 days in FY21. Capital spending ran ₹7.0 Cr over the last 3 years. At FY26 sales of ₹84.0 Cr each day of that cycle holds about ₹0.2 Cr, so roughly ₹161 Cr sits inside the business at any moment.

FY26: debtors at 125 days, inventory at 624 days — roughly 20.5 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 699 days, looser than FY21's 427.

The full loop: cash goes out to suppliers and production on day 0; stock waits 624 days to sell; customers pay about 125 days after that; and suppliers themselves are paid at 50 days — netting out to the 699-day cycle.

In money terms: at FY26 sales of ₹84.0 Cr, each day of the cycle holds about ₹0.2 Cr — so the 699-day loop keeps roughly ₹161 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹7.0 Cr over the last 3 fiscal years against ₹3.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2.0 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.

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.

High Energy Batteries (India) Ltd earns a ROCE of 20% in FY26. That is up from a trough of −19% in FY16. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 17.9% net margin on 0.60× asset turns.

FY26 ROCE is 20%, recovered from a FY16 trough of −19% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 17.9% net margin × 0.60× asset turns × 1.24× balance-sheet leverage ≈ 13.3% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

High Energy Batteries (India) Ltd carries ₹12.0 Cr of borrowings against ₹112 Cr of equity in FY26, a debt-to-equity of 0.11. Operating profit covers the interest bill 10×. Over 5 years borrowings went from ₹35.0 Cr to ₹12.0 Cr. Capital spending ran ₹7.0 Cr across the last 3 of those years.

FY26: borrowings of ₹12.0 Cr against equity of ₹112 Cr — a debt-to-equity of 0.11. Operating profit covers the interest bill 10×. Over 5 years borrowings went from ₹35.0 Cr to ₹12.0 Cr while capital spending ran ₹7.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

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.

Promoters added 1.8 points of High Energy Batteries (India) Ltd over 8 quarters, the biggest move on the register. That takes promoters to 43.1% of the company. Domestic institutions moved +0.0 points over the same window, to 6.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +1.8 points over 8 quarters to 43.1%; Domestic institutions: +0.0 points over 8 quarters to 6.0%.

Why the register moved: promoters drove it (+1.8 points) — steady accumulation by institutions reading the same numbers this page reads.

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.

High Energy Batteries (India) Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions