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Last Updated on: 10 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

HB Stockholdings Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 24, 2024, 11:27 am

Market Cap 97.8 Cr.
Current Price 137
High / Low187/47.4
Stock P/E2.84
Book Value 144
Dividend Yield1.09 %
ROCE48.4 %
ROE44.4 %
Face Value 10.0
PEG Ratio0.03

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for HB Stockholdings Ltd

Competitors of HB Stockholdings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of HB Stockholdings Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1801224008401013
Expenses0000101601701
Operating Profit1701213-1-683-71012
OPM %68%95%13%97%68%90%-1,819%94%85%-1,542%95%92%
Other Income0000000000000
Interest0000000000000
Depreciation0000000000000
Profit before tax1701213-1-683-71012
Tax %0%0%-60%0%45%20%98%0%0%-4%0%0%11%
Net Profit1701213-0-683-71011
EPS in Rs0.8510.190.1316.760.813.73-0.03-7.9610.684.32-9.8513.6714.98

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales121913-04152321318028
Expenses4333332991229
Operating Profit81610-31120-5-71216-218
OPM %68%84%77%28%79%5%-152%-369%90%90%-720%66%
Other Income1000000000000
Interest0000000000000
Depreciation0000000000000
Profit before tax91610-4112-0-6-71216-218
Tax %-1%7%12%-1%12%11%-323%-4%-0%-0%3%5%
Net Profit1116-2312-1-6-71215-216
EPS in Rs0.494.562.33-0.941.454.88-0.77-8.11-10.3016.4621.28-2.8223.12
Dividend Payout %0%22%0%0%0%0%0%0%0%0%5%-38%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)1000.00%-45.45%-133.33%250.00%300.00%-108.33%-500.00%-16.67%271.43%25.00%-113.33%
Change in YoY Net Profit Growth (%)0.00%-1045.45%-87.88%383.33%50.00%-408.33%-391.67%483.33%288.10%-246.43%-138.33%

HB Stockholdings Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:66%
3 Years:50%
TTM:20%
Compounded Profit Growth
10 Years:21%
5 Years:53%
3 Years:47%
TTM:43%
Stock Price CAGR
10 Years:38%
5 Years:80%
3 Years:48%
1 Year:85%
Return on Equity
10 Years:7%
5 Years:19%
3 Years:24%
Last Year:44%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital24242424248888888
Reserves10611311011412536302345615895
Borrowings000001100011
Other Liabilities191499729225216
Total Liabilities150151144147157744033587168110
Fixed Assets111001111122
CWIP000000000000
Investments1201211031031122413846474582
Other Assets282941434449262312232225
Total Assets150151144147157744033587168110

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 28-6-03-32-15-12-333
Cash from Investing Activity -0-0000-1-00-415-1-31
Cash from Financing Activity 0-3-0001-0-0-0-01-0
Net Cash Flow25-7-03-31-213-42

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow8.0016.0010.00-3.001.0012.00-1.00-6.00-7.0012.0016.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days872-3,159000000000
Inventory Days0
Days Payable
Cash Conversion Cycle872-3,159000000000
Working Capital Days23433237,2583,2607822,7066091,164217968817
ROCE %12%8%-2%1%8%-0%-13%-21%28%26%-3%48%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters53.22%53.22%53.22%53.22%53.22%53.22%53.22%53.22%53.22%53.22%53.22%53.22%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.00%0.00%0.00%
Public46.78%46.78%46.78%46.76%46.76%46.76%46.77%46.77%46.77%46.76%46.78%46.78%
No. of Shareholders37,31938,51238,36538,16337,91837,75237,23036,68737,10436,02736,37737,172

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)52.59-2.8221.2816.47-10.30
Diluted EPS (Rs.)52.59-2.8221.2816.47-10.30
Cash EPS (Rs.)49.34-2.2720.0215.54-9.28
Book Value[Excl.RevalReserv]/Share (Rs.)134.2585.9289.5369.2039.38
Book Value[Incl.RevalReserv]/Share (Rs.)134.2585.9289.5369.2039.38
Revenue From Operations / Share (Rs.)57.763.8823.0617.182.56
PBDIT / Share (Rs.)54.20-2.3520.7415.54-9.22
PBIT / Share (Rs.)53.73-2.7020.4915.30-9.50
PBT / Share (Rs.)53.60-2.7520.4815.26-9.56
Net Profit / Share (Rs.)48.87-2.6219.7715.30-9.57
NP After MI And SOA / Share (Rs.)48.87-2.6219.7715.30-9.57
PBDIT Margin (%)93.83-60.4789.9390.47-360.43
PBIT Margin (%)93.01-69.5788.8789.05-371.68
PBT Margin (%)92.80-70.9288.8088.83-373.86
Net Profit Margin (%)84.60-67.5585.7489.07-374.14
NP After MI And SOA Margin (%)84.60-67.5585.7489.07-374.14
Return on Networth / Equity (%)36.40-3.0522.0822.11-24.29
Return on Capital Employeed (%)38.16-3.0822.3321.64-23.25
Return On Assets (%)34.26-2.9521.4820.16-22.60
Total Debt / Equity (X)0.010.010.000.000.01
Asset Turnover Ratio (%)0.490.040.270.280.04
Current Ratio (X)75.4967.10313.3214.2527.18
Quick Ratio (X)75.4967.10313.3214.2527.18
Dividend Payout Ratio (NP) (%)1.900.000.000.000.00
Dividend Payout Ratio (CP) (%)1.880.000.000.000.00
Earning Retention Ratio (%)98.100.000.000.000.00
Cash Earning Retention Ratio (%)98.120.000.000.000.00
Interest Coverage Ratio (X)438.21-44.821219.17408.12-165.45
Interest Coverage Ratio (Post Tax) (X)396.11-49.071163.40402.80-170.75
Enterprise Value (Cr.)60.4135.4833.0611.365.15
EV / Net Operating Revenue (X)1.3611.911.870.862.62
EV / EBITDA (X)1.45-19.692.080.95-0.72
MarketCap / Net Operating Revenue (X)1.4111.852.100.942.72
Retention Ratios (%)98.090.000.000.000.00
Price / BV (X)0.600.530.540.230.17
Price / Net Operating Revenue (X)1.4111.852.100.942.72
EarningsYield0.60-0.050.400.94-1.37

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of HB Stockholdings Ltd as of November 10, 2024 is: 183.56

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 10, 2024, HB Stockholdings Ltd is Undervalued by 33.99% compared to the current share price ₹137.00

Intrinsic Value of HB Stockholdings Ltd as of November 10, 2024 is: 372.51

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 10, 2024, HB Stockholdings Ltd is Undervalued by 171.91% compared to the current share price 137.00

Last 5 Year EPS CAGR: 102.94%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (76.33 cr) compared to borrowings (0.33 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (9.92 cr) and profit (5.77 cr) over the years.
  1. The stock has a low average ROCE of 7.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 233.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 6.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in HB Stockholdings Ltd:
    1. Net Profit Margin: 84.6%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 38.16% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 36.4% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 396.11
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 75.49
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 2.84 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

HB Stockholdings Ltd. is a Public Limited Listed company incorporated on 30/07/1985 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L65929HR1985PLC033936 and registration number is 033936. Currently Company is involved in the business activities of Trusts, funds and other financial vehicles. Company’s Total Operating Revenue is Rs. 17.71 Cr. and Equity Capital is Rs. 7.68 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)Plot No.31, Gurgaon Haryana 122001corporate@hbstockholdings.com
http://www.hbstockholdings.com
Management
NamePosition Held
Mr. Lalit BhasinExecutive Chairman
Mr. Anil GoyalDirector
Mr. Harbans LalDirector
Mr. Ashish KapurDirector
Mr. Gulshan RaiDirector
Mrs. Asha MehraDirector
Mrs. Urvija ShahDirector
Mr. Yash Kumar SehgalDirector

FAQ

What is the latest fair value of HB Stockholdings Ltd?

The latest fair value of HB Stockholdings Ltd is ₹183.56.

What is the Market Cap of HB Stockholdings Ltd?

The Market Cap of HB Stockholdings Ltd is 97.8 Cr..

What is the current Stock Price of HB Stockholdings Ltd as on 10 November 2024?

The current stock price of HB Stockholdings Ltd as on 10 November 2024 is 137.

What is the High / Low of HB Stockholdings Ltd stocks in FY 2024?

In FY 2024, the High / Low of HB Stockholdings Ltd stocks is 187/47.4.

What is the Stock P/E of HB Stockholdings Ltd?

The Stock P/E of HB Stockholdings Ltd is 2.84.

What is the Book Value of HB Stockholdings Ltd?

The Book Value of HB Stockholdings Ltd is 144.

What is the Dividend Yield of HB Stockholdings Ltd?

The Dividend Yield of HB Stockholdings Ltd is 1.09 %.

What is the ROCE of HB Stockholdings Ltd?

The ROCE of HB Stockholdings Ltd is 48.4 %.

What is the ROE of HB Stockholdings Ltd?

The ROE of HB Stockholdings Ltd is 44.4 %.

What is the Face Value of HB Stockholdings Ltd?

The Face Value of HB Stockholdings Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in HB Stockholdings Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE