Hitachi Energy 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.

Hitachi Energy India Ltd trades at ₹32,175, in a confirmed uptrend and 172 weeks into that stage. That is +18.2% against its own 200-day average. It sits at 72% of a 52-week range of ₹16,214 to ₹38,445. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (6 weeks and counting).

Today the stock is in a confirmed uptrend — week 172 of stage 2, confirmed. At ₹32,175 it trades +18.2% versus its 200-day average and sits at 72% of its 52-week range (₹16,214–₹38,445).

Against the market, two honest reads. Cumulative: over the last 6.3 years the stock moved +3,973% while the NIFTY 500 moved +228% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (6 weeks and counting; last ahead the week of 2026-06-25) — 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.

Hitachi Energy India Ltd trades at 139.0× P/E, mid-range by its own standards (41st percentile). Its long-run median P/E is 154.9×, measured across 6.3 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 139.0× is mid-range by its own standards (41st percentile), against a long-run median of 154.9× measured over 6.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +157.3% against a +56.6% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the +101.0%/yr price move, ~+117.6%/yr came from earnings growth and ~−16.6 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

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

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).

Hitachi Energy India Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +193.6% at its peak to +157.7% but is still expanding, ROCE lifting at 23.3%. 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.

4-Factor Sector Score

60.8/100 — rank 2 of 6 in Electrical Equipments/HVDC · 79% evidence confidence

Hitachi Energy India Ltd scores 60.8 out of 100 against the 6 companies it is compared with in Electrical Equipments/HVDC, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 25.6 + 15.2 + 8.5 + 11.5 = 60.8. 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.

Hitachi Energy India Ltd reported ₹2,754 Cr of revenue in the Mar 26 quarter, +46.2% year on year. That is the 12th straight quarter of year-on-year growth. Over 7 years it has compounded at 14.1% a year. The last full year, FY26, came in at ₹8,148 Cr. The last four reported quarters add to ₹8,148 Cr.

FY26 revenue came in at ₹8,148 Cr (+27.6% on the year), capping 7 years at 14.1% compound. The latest quarter (Mar 26) printed ₹2,754 Cr, +46.2% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +26.1% growth against the decade's 14.1% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +27.6% over the last 4 quarters against +24.7%/yr over the last 8 — stabilising; TTM profit +157.7% vs +145.3%/yr — accelerating.

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.

Hitachi Energy India Ltd's operating margin is 15.0% in the Mar 26 quarter, +2.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 8 fiscal years the operating margin has ranged 6.0% to 16.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 15.0%, +2.0 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 6.0%–16.0%, and FY26's 16.0% is the top of that band — a record year.

Why the margin moved: operating margin went +2.5 pp year on year while gross margin went −1.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

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

Hitachi Energy India Ltd earned ₹330 Cr of net profit in the Mar 26 quarter, +79.3% year on year. It is the 10th consecutive quarter of growth. Full-year FY26 profit was ₹988 Cr. The 7-year compound rate is 29.1%. That is 12.0% of the quarter's revenue. The same quarter a year earlier earned ₹184 Cr.

Mar 26 profit was ₹330 Cr, +79.3% year on year — the 10th consecutive quarter of growth. On the full year, FY26 printed ₹988 Cr (+157.3%), and the 7-year compound rate is 29.1%.

Why profit moved: revenue contributed +46.2% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +449.4% vs revenue +26.1%. 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 195% of Hitachi Energy India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1,245 Cr of operating cash against ₹988 Cr of profit. After ₹334 Cr of capital spending, ₹911 Cr was left as free cash.

FY26: operating cash of ₹1,245 Cr against reported profit of ₹988 Cr, leaving free cash of ₹911 Cr after ₹334 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 195% 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 195%: the cash cycle stretched 15 days between Dec 20 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 2.0× 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).

Hitachi Energy India Ltd's cash conversion cycle runs −42 days in FY26, up from −57 days in Dec 20. Capital spending ran ₹560 Cr over the last 3 years. At FY26 sales of ₹8,148 Cr each day of that cycle holds about ₹22.3 Cr, so roughly ₹−938 Cr sits inside the business at any moment.

FY26: debtors at 86 days, inventory at 119 days — roughly 3.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −42 days, looser than Dec 20's −57.

The full loop: cash goes out to suppliers and production on day 0; stock waits 119 days to sell; customers pay about 86 days after that; and suppliers themselves are paid at 246 days — netting out to the −42-day cycle.

In money terms: at FY26 sales of ₹8,148 Cr, each day of the cycle holds about ₹22.3 Cr — so the −42-day loop keeps roughly ₹−938 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹560 Cr over the last 3 fiscal years against ₹285 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹192 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.

Hitachi Energy India Ltd earns a ROCE of 29% in FY26. That is up from a trough of 13% in FY23. Return on invested capital clears the cost of that capital by +284.5 percentage points, so growth here adds value rather than only size. The wiring behind it is 12.1% net margin on 0.68× asset turns.

FY26 ROCE is 29%, recovered from a FY23 trough of 13% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 12.1% net margin × 0.68× asset turns × 2.33× balance-sheet leverage ≈ 19.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 296.5% − 12.0% = a +284.5 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. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

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.

Hitachi Energy India Ltd carries total debt of ₹86.0 Cr against shareholder equity of ₹5,176 Cr as of Mar 26, a debt-to-equity of 0.02 — effectively unlevered. On the annual view that ratio went from 0.17 in FY22 to 0.02 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹86.0 Cr against shareholder equity of ₹5,176 Cr — a debt-to-equity of 0.02. On the annual view, debt-to-equity went from 0.17 (FY22) to 0.02 (FY26). The returns on this page are earned, not borrowed.

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.

Foreign institutions added 7.4 points of Hitachi Energy India Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 12.4% of the company. Promoters moved −3.7 points over the same window, to 71.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +7.4 points over 8 quarters to 12.4%; Promoters: −3.7 points over 8 quarters to 71.3%; Domestic institutions: −2.2 points over 8 quarters to 6.3%.

Why the register moved: rotation — foreign institutions +7.4 points against domestic institutions −2.2 points over 8 quarters, with promoters −3.7 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

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.

Hitachi Energy India Ltd: the Z-score reads 9.13. 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 9.13 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 9.13.

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