capital_goods

Hitachi Energy India

POWERINDIA · Nifty 50

35,950

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positioncapital_goods sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score95/100 (STRONG). 2 positive flags, 2 concerns.
Historical Context28 similar technical setups. Average outcome: -11.8% decline. 0% positive.

Fundamental

95/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Hitachi Energy India scores 95/100 on fundamentals (strong). Hitachi Energy India: BROAD EXPANSION regime.

Fundamental Score: 95/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 17.5% broken into three drivers. Each shows how efficiently the company generates returns.

ROE17.5%=
11.3%Net Margin
×
0.7xTurnover
×
2.3xLeverage

ROE of 17.52% is moderate margin-driven and stable. Net margin of 11.3% × asset turnover of 0.66x × leverage of 2.3x.

What This Means

Net margin of 11.3% means the company keeps ₹11.3 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.66x means the company efficiently uses its assets to generate revenue. Leverage of 2.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

37.5%

Operating

15.4%

Net

11.3%

declining

Gross margin 37.5% → operating margin 15.4% → net margin 11.3%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

ADEQUATE

Cash flow covers net income 1.4x — earnings are ADEQUATE quality. Cash conversion is reasonable.

Debt Sustainability

COMFORTABLE

Interest covered 77.3x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin at 9.2% — moderate. Generating cash after investments.

Peer Comparison

Hitachi Energy India is compared against 10 peers in the capital_goods sector.

Key Watchpoints

🟢

Breaks above ₹37748 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹34152 (-5%)

Further downside risk

🟢

Capital_Goods sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition

Risk Flags

⚠️ 2 Warning2 Positive4 total flags
⚠️Working capital changes are 42% of operating cash flow
Cash Flow

Working capital is providing significant cash. Stretching payables — temporary boost.

⚠️Price/Sales: 19.9x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

Receivables decreasing — 14.9% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

High promoter holding: 72%
Governance

Strong insider alignment. Promoters have significant skin in the game.

➡️ 4 flags — 2 positive, 2 warning. Mixed profile.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
153.8UNAVAILABLE
P/B Ratio
29.6HIGH
Market Cap
₹15299464.4L CrHIGH
From 52W High
93% of high
Sector Peers
10
Hitachi Energy India Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight