1. At a Glance
An Indian manufacturer riding the global energy transition wave, Quality Power has delivered explosive profit growth, mind-numbing debtor days, and margins that make ABB blush. But wait—why is the P/E north of 100?
2. Introduction with Hook
Imagine a company that makes power infrastructure gear and posts 80% profit growth… then quietly reports 214 debtor days and working capital stuck longer than a UPSC aspirant in optional subjects.
- ROCE: 28%
- PAT FY25: ₹100 Cr
This ain’t just any electrical firm. It’s India’s high-voltage moonshot—but does it come with a fuse?
3. Business Model (WTF Do They Even Do?)
They manufacture and supply high-voltage energy transmission gear like:
- Transformers
- Automation systems
- Grid connectivity products
- AI/IoT-based smart systems (via Nebeskie Labs)
They serve power generation, transmission, distribution, and automation verticals—basically, wherever the current flows, they follow.
4. Financials Overview
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 183 | 253 | 301 | 337 |
| Net Profit (₹ Cr) | 42 | 40 | 55 | 100 |
| OPM (%) | 13% | 13% | 13% | 19% |
| ROCE (%) | — | 28% | 31% | 28% |
| ROE (%) | — | — | — | 23.2% |
Consistent growth, rising margins, and an ROE that’s not shy at all. But…
5. Valuation
- P/E: 104
- Price/BV: 16.4
- PEG: Close your eyes and pretend
Fair Value Range Estimate: ₹570–₹750
Valuation is pricing in FY27 already, even though FY25 receivables are still stuck in FY23.
6. What’s Cooking – News, Triggers, Drama
- Sukrut Electric Acquisition (100% Stake): Strategic vertical integration
- Nebeskie Labs stake hiked to 26%: Push into AI-driven smart grid tech
- New Coil Factory (Sangli): Operational by Dec 2026, huge capex
- Q1 results + EPS clarity expected
All the right noises, but the stock’s priced like it’s already perfect.
7. Balance Sheet
| Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Equity Capital | 0.15 | 0.15 | 72 | 77 |
| Reserves | 92 | 112 | 81 | 347 |
| Borrowings | 12 | 11 | 38 | 9 |
| Total Liabilities | 253 | 312 | 359 | 814 |
| Total Assets | 253 | 312 | 359 | 814 |
Key Take: Reserves went kaboom. Debt reduced. But total liabilities and assets doubled in FY25. Capex party?
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow |
|---|---|---|---|---|
| FY22 | 9 | -13 | 2 | -3 |
| FY23 | 44 | -55 | -4 | -14 |
| FY24 | 52 | -81 | 25 | -4 |
| FY25 | 62 | -93 | 171 | 141 |
Heavy investing. FY25 saved by ₹171 Cr from financing. So yes—cash-positive, but needs watching.
9. Ratios – Sexy or Stressy?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Debtor Days | 108 | 94 | 97 | 214 |
| Inventory Days | 139 | 109 | 43 | 185 |
| Payable Days | 93 | 120 | 117 | 167 |
| CCC (Days) | 154 | 82 | 22 | 232 |
| Working Cap Days | 66 | 20 | 12 | 169 |
Debtor Days hit 214! That’s nearly 7 months of “bhaiya invoice bhej diya tha yaad hai na?”
10. P&L Breakdown – Show Me the Money
| FY | Sales (₹ Cr) | OPM (%) | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY22 | 183 | 13% | 42 | ₹110K+ |
| FY23 | 253 | 13% | 40 | ₹137K+ |
| FY24 | 301 | 13% | 55 | 5.19 |
| FY25 | 337 | 19% | 100 | 8.54 |
Yes, those 5-digit EPS figures were pre-split / pre-dilution. Welcome to Earth.
11. Peer Comparison
| Company | CMP (₹) | P/E | OPM (%) | ROE (%) | Mcap (₹ Cr) |
|---|---|---|---|---|---|
| ABB | 5679 | 63.7 | 18.9% | 28.8% | 120,351 |
| Siemens | 3130 | 59.3 | 12.0% | 17.6% | 111,489 |
| BHEL | 250 | 163 | 4.4% | 2.2% | 87,086 |
| CG Power | 674 | 112 | 13.3% | 27.6% | 106,202 |
| Quality Power | 899 | 104 | 19.4% | 23.2% | 6,963 |
You’re not ABB yet. But you’re priced like their younger, more enthusiastic cousin.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoter | 73.91% |
| FIIs | 3.99% |
| DIIs | 8.76% |
| Public | 13.35% |
| No. of SHs | 81,106 |
Solid promoter skin-in-game. FII + DII = 12.75% and rising. Looks institutionally blessed.
13. EduInvesting Verdict™
Quality Power is not your average electricals company. It’s fast, global, and ambitious—with margins and ROCE to back the drama. But debtors taking 214 days to cough up cash and a P/E of 104? You need nerves of steel-core copper to ride this one.
Let’s be clear: the electricals are high voltage, but so is the valuation risk. Plug in wisely.
Metadata
– Written by EduInvesting Analyst Desk | 18 July 2025
– Tags: Quality Power, Capital Goods, Power Tech, Smallcap, Receivable Risk, Smart Grid, Sangli Factory
