HPL Power has a potential to go further: Bonanza Portfolio Limited

Avinash Gupta, Assistant Vice President Research Equity, Bonanza Portfolio Limited in a chat with ET Now talks about HPL Power.

Your next pick is HPL Power tell us why do you like the stock and how much headroom do you see from these levels?

Again HPL Power it is a same story, they are into making a storage batteries. Batteries generally people had shared with the automobile industry but the next year we see non-auto industry growing much faster and this company were into industrial batteries.

They have been going into small form segments and they are becoming leaders. They have a got a leadership position in the telecom segment where they have got more than 50% share in the domestic market.

They have got a very big position in the international market, I mean, globally they are the third largest player in the supplying of batteries for the airplanes and they are the second largest industrial manufacturer of industrial batteries and Nickel Cadmium so that is the kind of profile the company is having with this kind of leadership position the company is being valued at about a PE ratio of around 10 for whatever the projected results are taking that’s into account. We feel that the shares stock is not overvalued. It is reasonably valued and compared to the peers it is much cheaper. Taking recent view into account we feel that the company has got a potential to go further.