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Last Updated on: 08 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Hemant Surgical Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 7, 2024, 11:31 pm

Market Cap 153 Cr.
Current Price 147
High / Low225/115
Stock P/E15.6
Book Value 52.6
Dividend Yield0.00 %
ROCE29.8 %
ROE25.0 %
Face Value 10.0
PEG Ratio0.33

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

View Share Price Target for Hemant Surgical Industries Ltd

Competitors of Hemant Surgical Industries Ltd

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

All Competitor Stocks of Hemant Surgical Industries Ltd

Quarterly Result

MonthSep 2022Sep 2023
Sales5148
Expenses4744
Operating Profit43
OPM %8%7%
Other Income13
Interest11
Depreciation01
Profit before tax45
Tax %36%17%
Net Profit24
EPS in Rs124.733.75

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Sales51565660101109
Expenses485353579598
Operating Profit2333611
OPM %5%5%5%5%6%10%
Other Income000122
Interest112222
Depreciation010111
Profit before tax1111610
Tax %10%8%41%9%25%24%
Net Profit110158
EPS in Rs50.7661.0227.0073.43248.92413.07
Dividend Payout %0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202021-20222022-2023
YoY Net Profit Growth (%)0.00%-100.00%400.00%60.00%
Change in YoY Net Profit Growth (%)0.00%-100.00%500.00%-340.00%

Hemant Surgical Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2018-2019 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:14%
3 Years:21%
TTM:-3%
Compounded Profit Growth
10 Years:%
5 Years:54%
3 Years:93%
TTM:28%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:-24%
Return on Equity
10 Years:%
5 Years:28%
3 Years:32%
Last Year:25%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital22222810
Reserves5658111644
Borrowings91114141077
Other Liabilities12142315323435
Total Liabilities28334440546597
Fixed Assets781011121318
CWIP0000000
Investments0010105
Other Assets21253329425174
Total Assets28334440546597

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 002-4126-8
Cash from Investing Activity 00-2-2-0-3-9
Cash from Financing Activity 0025-8-121
Net Cash Flow002-2435

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-7.00-8.00-11.00-11.00-4.004.00

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 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days35363526565875
Inventory Days6473125113576799
Days Payable102971438992110116
Cash Conversion Cycle-3121751211558
Working Capital Days1223146621674
ROCE %15%12%14%32%45%30%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2023Mar 2024
Promoters73.56%73.56%
FIIs0.03%0.00%
DIIs4.26%1.97%
Public22.14%24.47%
No. of Shareholders7221,229

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
FaceValue10.0010.0010.0010.00100.00
Basic EPS (Rs.)9.8510.288.962.2232.90
Diluted EPS (Rs.)9.8510.288.962.2232.90
Cash EPS (Rs.)10.3711.0726.818.9073.82
Book Value[Excl.RevalReserv]/Share (Rs.)52.5530.7365.7442.67400.80
Book Value[Incl.RevalReserv]/Share (Rs.)52.5530.7365.7442.67400.80
Revenue From Operations / Share (Rs.)101.16142.12517.85298.822805.11
PBDIT / Share (Rs.)14.1616.6942.5019.81150.54
PBIT / Share (Rs.)13.1715.5938.7616.64119.62
PBT / Share (Rs.)12.2413.1030.567.6047.90
Net Profit / Share (Rs.)9.399.9623.075.7342.90
PBDIT Margin (%)13.9911.748.206.625.36
PBIT Margin (%)13.0210.967.485.564.26
PBT Margin (%)12.109.215.902.541.70
Net Profit Margin (%)9.277.004.451.911.52
Return on Networth / Equity (%)17.8632.4235.0913.4210.70
Return on Capital Employeed (%)23.3744.3744.5116.4714.29
Return On Assets (%)10.1411.788.482.662.07
Long Term Debt / Equity (X)0.060.120.311.211.09
Total Debt / Equity (X)0.120.300.741.691.76
Asset Turnover Ratio (%)1.311.832.131.421.50
Current Ratio (X)1.831.231.021.131.05
Quick Ratio (X)1.280.840.670.470.45
Inventory Turnover Ratio (X)4.475.935.893.323.88
Interest Coverage Ratio (X)15.216.705.192.192.10
Interest Coverage Ratio (Post Tax) (X)11.095.003.811.631.60
Enterprise Value (Cr.)132.590.000.000.000.00
EV / Net Operating Revenue (X)1.260.000.000.000.00
EV / EBITDA (X)8.970.000.000.000.00
MarketCap / Net Operating Revenue (X)1.320.000.000.000.00
Price / BV (X)2.530.000.000.000.00
Price / Net Operating Revenue (X)1.320.000.000.000.00
EarningsYield0.070.000.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hemant Surgical Industries Ltd as of October 8, 2024 is: ₹209.24

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 October 8, 2024, Hemant Surgical Industries Ltd is Undervalued by 42.34% compared to the current share price ₹147.00

Intrinsic Value of Hemant Surgical Industries Ltd as of October 8, 2024 is: ₹306.73

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 October 8, 2024, Hemant Surgical Industries Ltd is Undervalued by 108.66% compared to the current share price ₹147.00

Last 5 Year EPS CAGR: 46.59%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.14%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 29.57, which is a positive sign.
  3. The company has higher reserves (13.57 cr) compared to borrowings (10.29 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (72.17 cr) and profit (3.33 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 24.43, 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 Hemant Surgical Industries Ltd:
    1. Net Profit Margin: 9.27%
      • 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: 23.37% (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%: 17.86% (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): 11.09
      • 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: 1.28
      • 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: 15.6 (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: 0.12
      • 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

Medical Equipment & Accessories
INDUSTRYADDRESSCONTACT
502, 5th Floor, Ecstasy Business Park Co-Op Socteiy Limited, Mumbai Maharashtra 400080Mr.Hanskumar%20Shamji%20Shah
Chairman%20&%20Managing%20Director
Management
NamePosition Held
Mr. Kaushik Hanskumar ShahWholeTime Director & CFO
Mr. Hemant Praful ShahWhole Time Director
Mrs. Nehal Babu KareliaNon Executive Director
Mrs. Pooja Kirti KothariIndependent Director
Mr. Sourabh AjmeraIndependent Director

FAQ

What is the latest fair value of Hemant Surgical Industries Ltd?

The latest fair value of Hemant Surgical Industries Ltd is ₹209.24.

What is the Market Cap of Hemant Surgical Industries Ltd?

The Market Cap of Hemant Surgical Industries Ltd is 153 Cr..

What is the current Stock Price of Hemant Surgical Industries Ltd as on 08 October 2024?

The current stock price of Hemant Surgical Industries Ltd as on 08 October 2024 is ₹147.

What is the High / Low of Hemant Surgical Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hemant Surgical Industries Ltd stocks is 225/115.

What is the Stock P/E of Hemant Surgical Industries Ltd?

The Stock P/E of Hemant Surgical Industries Ltd is 15.6.

What is the Book Value of Hemant Surgical Industries Ltd?

The Book Value of Hemant Surgical Industries Ltd is 52.6.

What is the Dividend Yield of Hemant Surgical Industries Ltd?

The Dividend Yield of Hemant Surgical Industries Ltd is 0.00 %.

What is the ROCE of Hemant Surgical Industries Ltd?

The ROCE of Hemant Surgical Industries Ltd is 29.8 %.

What is the ROE of Hemant Surgical Industries Ltd?

The ROE of Hemant Surgical Industries Ltd is 25.0 %.

What is the Face Value of Hemant Surgical Industries Ltd?

The Face Value of Hemant Surgical Industries 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 Hemant Surgical Industries 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