1. At a Glance
Established in 1958, Hirect is no newbie—it’s that old-school uncle who now speaks fluent AI and rides an EV. Specializing in rail electrification tech like traction transformers, rectifiers, inverters, and railway panels, it just clocked ₹655 Cr in FY25 revenue and ₹37 Cr PAT. Market cap? ₹2,243 Cr. PE? A spicy 61.3x.
2. Introduction with Hook
Imagine if your granddad reinvented himself as a tech-savvy EV consultant. That’s Hind Rectifiers Ltd—founded when Nehru was PM, now dancing to the Indian Railways’ ₹2 lakh crore capex tune. This OG power electronics company has:
- Grown PAT 197% YoY
- Built a ₹1,025 Cr order book (July 2025)
- Posted record FY25 revenue: ₹655 Cr
It’s not just supplying power — it’s plugging into every Bharat Rail upgrade and then some.
3. Business Model (WTF Do They Even Do?)
Core Offerings:
- Power Conversion Systems: Converters, rectifiers, inverters
- Railway Propulsion Systems: For locomotives, metro, EMUs
- Traction Transformers & Chargers: Electrification-grade hardware
- Custom Railway Panels: Switchboards, modular pantry systems
- Industrial Electronics: For defense, energy, infra
3 Plants: Nasik, Mumbai, Dehradun
Clientele: Indian Railways, Metro Rail Projects, industrial giants
If it runs on power and rails, chances are Hirect had something to do with it.
4. Financials Overview
| Year | Revenue (Cr) | EBITDA (Cr) | PAT (Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|---|
| FY22 | ₹372 | ₹23 | ₹8 | 6% | 4.71 |
| FY23 | ₹359 | ₹15 | ₹-6 | 4% | -3.71 |
| FY24 | ₹518 | ₹45 | ₹13 | 9% | 7.30 |
| FY25 | ₹655 | ₹71 | ₹37 | 11% | 21.72 |
Commentary:
- FY23 was a washout due to cost inflation & order lags
- FY25 was redemption season with record profits & margin expansion
- EPS 5x’d in 24 months. Hello, re-rating.
5. Valuation
- Current Price: ₹1,306
- EPS FY25: ₹21.72
- P/E: 61.3x
- Book Value: ₹93.2 → P/B = 14x
Fair Value Range: ₹900–₹1,250
At 61x PE, it’s already priced like an AI startup, not a transformer factory. Re-rating hopes hinge on sustained earnings >₹50 Cr in FY26.
6. What’s Cooking – News, Triggers, Drama
- Record Order Book: ₹1,025 Cr as of July 2025
- Sinnar Plant Expansion: ₹52 Cr capex
- New Subsidiary Formed (AI/IT): Big pivot dreams
- Railway Orders Galore: ₹284 Cr in June alone
- FY25 PAT up 197%
- Dividend Initiated: ₹2/share
Plus, CRISIL upgraded them to BBB/Stable. Not A+, but hey — better than backbencher.
7. Balance Sheet
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Equity Capital | ₹3 Cr | ₹3 Cr | ₹3 Cr | ₹3 Cr |
| Reserves | ₹104 | ₹108 | ₹121 | ₹157 |
| Borrowings | ₹75 | ₹105 | ₹135 | ₹164 |
| Other Liabilities | ₹64 | ₹76 | ₹71 | ₹93 |
| Total Assets | ₹246 | ₹292 | ₹331 | ₹418 |
| Fixed Assets | ₹48 | ₹80 | ₹90 | ₹107 |
| CWIP | ₹28 | ₹21 | ₹22 | ₹12 |
Takeaway:
Leverage increasing with capex, but reserves growing faster. Not risky yet.
8. Cash Flow – Sab Number Game Hai
| Cash Flow Type | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash Flow | ₹33 Cr | ₹34 Cr | ₹36 Cr |
| Investing Cash Flow | ₹-29 Cr | ₹-19 Cr | ₹-25 Cr |
| Financing Cash Flow | ₹-4 Cr | ₹-14 Cr | ₹-11 Cr |
| Net Cash Flow | ₹0 Cr | ₹0 Cr | ₹0 Cr |
Readout:
Stable cash from ops. Investments mostly self-funded. No funny games. No exotic debt.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | 5% | 16% | 22% |
| ROE % | – | 10% | 25.7% |
| Debtor Days | 69 | 63 | 61 |
| Inventory Days | 121 | 92 | 92 |
| CCC (Days) | 120 | 110 | 107 |
Verdict:
Working capital leaner, profitability stronger. This is what transformation smells like — freshly electrified.
10. P&L Breakdown – Show Me the Money
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Sales (Cr) | ₹372 | ₹359 | ₹518 | ₹655 |
| Operating Profit | ₹23 | ₹15 | ₹45 | ₹71 |
| Net Profit | ₹8 | ₹-6 | ₹13 | ₹37 |
| EPS (₹) | 4.71 | -3.71 | 7.30 | 21.72 |
Margins hitting double digits. PAT more than doubled YoY. Backlog strong, outlook bullish.
11. Peer Comparison
| Company | P/E | ROCE % | PAT (Cr) | Revenue (Cr) | M.Cap (Cr) |
|---|---|---|---|---|---|
| Kaynes Tech | 137.5 | 14.4 | 293 | 2,722 | ₹40,352 |
| Syrma SGS | 70.6 | 12.4 | 171 | 3,787 | ₹12,101 |
| Hind Rectifiers | 61.3 | 21.6 | 37 | 655 | ₹2,243 |
Compared to flashy midcap peers, Hirect looks small but lean — and rapidly gaining.
12. Miscellaneous – Shareholding, Promoters
| Quarter | Promoter % | FII % | DII % | Public % | No. of Holders |
|---|---|---|---|---|---|
| Jun ’22 | 42.25% | 6.47% | 0.02% | 51.26% | 9,652 |
| Mar ’25 | 43.98% | 6.03% | 0.01% | 49.96% | 18,241 |
Stable promoter holding. Public interest growing. Institutions low but watching. FOMO buildup in progress?
13. EduInvesting Verdict™
Hind Rectifiers is the kind of stock that flies under the radar… until it doesn’t.
What was once a dusty, PSU-adjacent parts supplier is now a lean, margin-improving, capex-hungry player with a 4-digit crore order book. Yes, PE is high — but if earnings grow 30% CAGR and execution holds, the re-rating might just stick.
Execution = king
Order book = juicy
Valuation = spicy
Would we trust it to power a bullet train? Maybe not yet. But a Vande Bharat coach? Absolutely.
Metadata
– Written by EduInvesting Research | July 15, 2025
– Tags: Hind Rectifiers, Railway Electronics, Propulsion Systems, Railway Capex, EV Transformers, Midcap Tech, Indian Infra Stocks
