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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Hercules Hoists Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:10 pm

Market Cap 750 Cr.
Current Price 234
High / Low311/90.5
Stock P/E29.8
Book Value 273
Dividend Yield1.71 %
ROCE5.67 %
ROE4.35 %
Face Value 1.00
PEG Ratio0.56

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

View Share Price Target for Hercules Hoists Ltd

Competitors of Hercules Hoists Ltd

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

All Competitor Stocks of Hercules Hoists Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales21282228283131373647414140
Expenses19262025263128323143363634
Operating Profit12232-03454556
OPM %7%7%9%11%8%-1%9%12%14%9%11%13%15%
Other Income21165215790378
Interest0000000000000
Depreciation1111111111111
Profit before tax33386139119471113
Tax %29%3%49%11%12%45%29%17%17%9%26%17%22%
Net Profit231751279855910
EPS in Rs0.650.810.432.321.690.220.722.252.7726.551.502.793.24

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
Sales118124104979173751028378108151170
Expenses83928587847272937874102134150
Operating Profit3632201071495471720
OPM %30%26%19%11%8%1%5%9%6%5%6%11%12%
Other Income111111101212101015814104109
Interest0000000000011
Depreciation2223233343244
Profit before tax4441281817101116161018116124
Tax %30%30%30%28%20%20%8%21%19%19%19%11%
Net Profit31292013138101313815103109
EPS in Rs9.668.926.183.954.152.493.064.004.062.424.6732.2834.08
Dividend Payout %18%20%24%38%36%40%41%38%44%62%56%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-6.45%-31.03%-35.00%0.00%-38.46%25.00%30.00%0.00%-38.46%87.50%586.67%
Change in YoY Net Profit Growth (%)0.00%-24.58%-3.97%35.00%-38.46%63.46%5.00%-30.00%-38.46%125.96%499.17%

Hercules Hoists 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:6%
5 Years:12%
3 Years:32%
TTM:-22%
Compounded Profit Growth
10 Years:6%
5 Years:29%
3 Years:66%
TTM:8%
Stock Price CAGR
10 Years:15%
5 Years:54%
3 Years:79%
1 Year:130%
Return on Equity
10 Years:4%
5 Years:3%
3 Years:4%
Last Year:4%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:36 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital3333333333333
Reserves157171177185336377424334491616703945870
Borrowings1007000000750
Other Liabilities28363548151724153160609795
Total Liabilities1892102152433543974513525256797741,051968
Fixed Assets2827252636353634332936340
CWIP0020000000000
Investments24404451205262315225422573662944958
Other Assets136143145165114100100937177767310
Total Assets1892102152433543974513525256797741,051968

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3-113-41215131016141228
Cash from Investing Activity +9-12-831-11-5-7-93-1-22
Cash from Financing Activity +-10-7-61-13-4-5-6-6-7-9-10
Net Cash Flow2-20-11-0-03-21102-3

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow36.0031.0020.0010.000.001.004.009.005.004.007.0010.00

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 Days7411112515511391414346242740
Inventory Days14119120433126328025826919814512483
Days Payable781321272306987867995827784
Cash Conversion Cycle137170202256306284213233149877439
Working Capital Days1942753344044443842693332311117247
ROCE %27%17%10%9%3%2%3%4%2%4%5%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters69.61%69.61%69.61%69.61%69.62%69.62%69.62%69.62%69.61%69.61%69.61%69.61%
FIIs0.10%0.07%0.05%0.02%0.00%0.03%0.07%0.11%0.06%1.92%1.72%1.66%
Public30.29%30.32%30.34%30.37%30.40%30.35%30.31%30.28%30.33%28.46%28.68%28.72%
No. of Shareholders15,83316,13015,76216,35315,95215,62315,69516,26716,62717,37517,50418,134

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23
FaceValue1.001.00
Basic EPS (Rs.)11.2432.28
Diluted EPS (Rs.)11.2432.28
Cash EPS (Rs.)12.6033.52
Book Value[Excl.RevalReserv]/Share (Rs.)296.21220.83
Book Value[Incl.RevalReserv]/Share (Rs.)296.21220.83
Revenue From Operations / Share (Rs.)56.1047.12
PBDIT / Share (Rs.)16.1010.75
PBIT / Share (Rs.)14.749.51
PBT / Share (Rs.)14.5736.28
Net Profit / Share (Rs.)11.2432.28
NP After MI And SOA / Share (Rs.)11.2432.28
PBDIT Margin (%)28.6922.80
PBIT Margin (%)26.2820.18
PBT Margin (%)25.9777.01
Net Profit Margin (%)20.0368.51
NP After MI And SOA Margin (%)20.0368.51
Return on Networth / Equity (%)3.7914.61
Return on Capital Employeed (%)4.654.08
Return On Assets (%)3.4213.34
Asset Turnover Ratio (%)0.190.00
Current Ratio (X)3.234.65
Quick Ratio (X)2.613.67
Inventory Turnover Ratio (X)3.640.00
Dividend Payout Ratio (NP) (%)22.237.27
Dividend Payout Ratio (CP) (%)19.847.01
Earning Retention Ratio (%)77.7792.73
Cash Earning Retention Ratio (%)80.1692.99
Interest Coverage Ratio (X)93.0562.63
Interest Coverage Ratio (Post Tax) (X)65.9832.09
Enterprise Value (Cr.)1712.54555.18
EV / Net Operating Revenue (X)9.543.68
EV / EBITDA (X)33.2416.14
MarketCap / Net Operating Revenue (X)9.613.79
Retention Ratios (%)77.7692.72
Price / BV (X)1.820.80
Price / Net Operating Revenue (X)9.613.79
EarningsYield0.020.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hercules Hoists Ltd as of November 25, 2024 is: 359.94

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 25, 2024, Hercules Hoists Ltd is Undervalued by 53.82% compared to the current share price 234.00

Intrinsic Value of Hercules Hoists Ltd as of November 25, 2024 is: 550.84

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 25, 2024, Hercules Hoists Ltd is Undervalued by 135.40% compared to the current share price 234.00

Last 5 Year EPS CAGR: 53.04%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (445.08 cr) compared to borrowings (1.54 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (105.69 cr) and profit (36.08 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 258.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 179.17, 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 Hercules Hoists Ltd:
    1. Net Profit Margin: 20.03%
      • 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: 4.65% (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%: 3.79% (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): 65.98
      • 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: 2.61
      • 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: 29.8 (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
      • 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

Hercules Hoists Ltd. is a Public Limited Listed company incorporated on 15/06/1962 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L45400MH1962PLC012385 and registration number is 012385. Currently Company is involved in the business activities of Manufacture of lifting and handling equipment. Company’s Total Operating Revenue is Rs. 108.45 Cr. and Equity Capital is Rs. 3.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralBajaj Bhawan, 2nd floor, 226, Jamnalal Bajaj Marg, Mumbai Maharashtra 400021indef@indef.com
http://www.indef.com
Management
NamePosition Held
Mr. Shekhar BajajChairman
Mr. H A NevatiaWhole Time Director
Ms. Shruti JatiaDirector
Mr. Vandan ShahDirector
Mr. Nirav Nayan BajajDirector
Ms. Neelima Bajaj SwamyDirector
Mr. K J MallyaDirector
Ms. Girija BalakrishnanDirector
Mr. Vikram HosangadyDirector

FAQ

What is the latest intrinsic value of Hercules Hoists Ltd?

The latest intrinsic value of Hercules Hoists Ltd as on 24 November 2024 is ₹359.94, which is 53.82% higher than the current market price of ₹234.00.

What is the Market Cap of Hercules Hoists Ltd?

The Market Cap of Hercules Hoists Ltd is 750 Cr..

What is the current Stock Price of Hercules Hoists Ltd as on 24 November 2024?

The current stock price of Hercules Hoists Ltd as on 24 November 2024 is 234.

What is the High / Low of Hercules Hoists Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hercules Hoists Ltd stocks is 311/90.5.

What is the Stock P/E of Hercules Hoists Ltd?

The Stock P/E of Hercules Hoists Ltd is 29.8.

What is the Book Value of Hercules Hoists Ltd?

The Book Value of Hercules Hoists Ltd is 273.

What is the Dividend Yield of Hercules Hoists Ltd?

The Dividend Yield of Hercules Hoists Ltd is 1.71 %.

What is the ROCE of Hercules Hoists Ltd?

The ROCE of Hercules Hoists Ltd is 5.67 %.

What is the ROE of Hercules Hoists Ltd?

The ROE of Hercules Hoists Ltd is 4.35 %.

What is the Face Value of Hercules Hoists Ltd?

The Face Value of Hercules Hoists Ltd is 1.00.

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 Hercules Hoists 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