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Last Updated on: 05 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Hikal Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 2, 2024, 12:09 pm

Market Cap 4,727 Cr.
Current Price 383
High / Low411/260
Stock P/E69.8
Book Value 96.3
Dividend Yield0.31 %
ROCE7.79 %
ROE5.97 %
Face Value 2.00
PEG Ratio-112.44

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

View Share Price Target for Hikal Ltd

Competitors of Hikal Ltd

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

All Competitor Stocks of Hikal Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales463532457469515502379559540545388435448
Expenses372423361378422441356489466457338377383
Operating Profit911099691936123707588505865
OPM %20%21%21%19%18%12%6%12%14%16%13%13%14%
Other Income1331103130110
Interest810887811111313141314
Depreciation22222324252426272827282929
Profit before tax628168606229-12333649101722
Tax %35%37%26%26%27%28%25%24%26%26%29%25%25%
Net Profit405151444521-925263671316
EPS in Rs3.274.134.103.573.671.68-0.722.012.142.920.561.021.31

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
Sales7086608298729261,0141,2961,5901,5071,7201,9432,0231,908
Expenses5254766426897458131,0541,2911,2341,3981,6021,7651,638
Operating Profit183184187182181201242298273323341258270
OPM %26%28%23%21%20%20%19%19%18%19%18%13%14%
Other Income-20-423422-342-125555
Interest66606860624849585236314853
Depreciation4549556467698693828596109111
Profit before tax513398605380112149127206219105111
Tax %10%24%35%32%23%16%31%31%33%36%27%26%
Net Profit46256440416877103841331607882
EPS in Rs3.732.045.173.283.345.496.268.366.8510.8013.026.366.64
Dividend Payout %21%16%12%20%20%15%13%14%18%19%12%19%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-45.65%156.00%-37.50%2.50%65.85%13.24%33.77%-18.45%58.33%20.30%-51.25%
Change in YoY Net Profit Growth (%)0.00%201.65%-193.50%40.00%63.35%-52.62%20.53%-52.21%76.78%-38.03%-71.55%

Hikal 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:8%
5 Years:2%
3 Years:1%
TTM:-11%
Compounded Profit Growth
10 Years:1%
5 Years:-8%
3 Years:-20%
TTM:-28%
Stock Price CAGR
10 Years:15%
5 Years:26%
3 Years:-12%
1 Year:32%
Return on Equity
10 Years:11%
5 Years:11%
3 Years:9%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital161616161616252525252525
Reserves4344885165475896537327929091,0431,1091,163
Borrowings584546547505598635661646610675748818
Other Liabilities157219212206177237268306370470504482
Total Liabilities1,1911,2701,2921,2751,3791,5421,6861,7681,9132,2132,3852,487
Fixed Assets6606446396236686347137357138799481,071
CWIP496162666311879161254295412414
Investments3333431111155
Other Assets4795625885836457888938719461,0281,020997
Total Assets1,1911,2701,2921,2751,3791,5421,6861,7681,9132,2132,3852,487

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 61154102186163139186285229294315187
Cash from Investing Activity -28-23-43-64-102-110-125-164-156-284-292-174
Cash from Financing Activity -27-124-69-124-63-25-55-101-97-6-8-27
Net Cash Flow67-10-2-24620-24415-14

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow183.00-400.00-359.00-365.00-324.00-397.00-393.00-363.00-373.00-287.00-334.00-490.00

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 Days47395444928180821038280113
Inventory Days359302268229189158156147107121104134
Days Payable158127117101938668959291103123
Cash Conversion Cycle24821420517318815316813511811281124
Working Capital Days84958497126107114901139886119
ROCE %14%16%11%11%12%13%15%14%16%15%8%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters68.77%68.77%68.77%68.77%68.82%68.85%68.85%68.85%68.85%68.85%68.85%68.85%
FIIs6.91%6.92%3.91%4.27%4.40%4.56%4.57%4.81%6.14%6.55%6.66%6.78%
DIIs0.39%0.89%0.89%1.37%1.57%2.18%2.78%3.11%3.15%3.53%3.17%3.58%
Public23.93%23.42%26.43%25.58%25.20%24.40%23.79%23.22%21.85%21.06%21.32%20.79%
No. of Shareholders72,45075,34179,10578,50075,78075,16775,11076,12674,65771,84070,97871,912

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund36,6830.221.0136,6832024-11-020%
Motilal Oswal S&P BSE Healthcare ETF4050.140.0136,6832024-11-02-98.9%
Groww Nifty Total Market Index Fund850.01036,6832024-11-02-99.77%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)5.646.3613.0210.806.85
Diluted EPS (Rs.)5.646.3613.0210.806.85
Cash EPS (Rs.)15.1815.2020.7817.7113.54
Book Value[Excl.RevalReserv]/Share (Rs.)96.3291.9386.6275.7066.22
Book Value[Incl.RevalReserv]/Share (Rs.)96.3291.9386.6275.7066.22
Revenue From Operations / Share (Rs.)144.74164.07157.56139.53122.24
PBDIT / Share (Rs.)21.8621.2928.0226.5922.45
PBIT / Share (Rs.)12.3212.4520.2619.6815.77
PBT / Share (Rs.)7.758.5517.7316.7410.27
Net Profit / Share (Rs.)5.646.3613.0210.806.85
NP After MI And SOA / Share (Rs.)5.646.3613.0210.806.85
PBDIT Margin (%)15.1012.9717.7819.0518.36
PBIT Margin (%)8.517.5812.8514.1012.89
PBT Margin (%)5.355.2011.2511.998.39
Net Profit Margin (%)3.903.878.267.735.60
NP After MI And SOA Margin (%)3.903.878.267.735.60
Return on Networth / Equity (%)5.866.9115.0214.2610.34
Return on Capital Employeed (%)8.778.9017.2919.3116.59
Return On Assets (%)2.793.287.256.954.77
Long Term Debt / Equity (X)0.350.430.260.280.37
Total Debt / Equity (X)0.680.650.630.550.68
Asset Turnover Ratio (%)0.730.870.940.930.87
Current Ratio (X)1.281.421.251.341.30
Quick Ratio (X)0.870.940.820.930.77
Inventory Turnover Ratio (X)2.603.473.473.132.31
Dividend Payout Ratio (NP) (%)0.0015.7316.9011.1123.36
Dividend Payout Ratio (CP) (%)0.006.5710.586.7711.82
Earning Retention Ratio (%)0.0084.2783.1088.8976.64
Cash Earning Retention Ratio (%)0.0093.4389.4293.2388.18
Interest Coverage Ratio (X)4.785.4611.079.065.28
Interest Coverage Ratio (Post Tax) (X)2.232.636.144.682.90
Enterprise Value (Cr.)4058.844164.235587.562246.861360.47
EV / Net Operating Revenue (X)2.272.062.881.310.90
EV / EBITDA (X)15.0615.8716.176.854.91
MarketCap / Net Operating Revenue (X)1.831.722.551.030.57
Retention Ratios (%)0.0084.2683.0988.8876.63
Price / BV (X)2.753.074.651.901.06
Price / Net Operating Revenue (X)1.831.722.551.030.57
EarningsYield0.020.020.030.070.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hikal Ltd as of November 5, 2024 is: 402.53

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 5, 2024, Hikal Ltd is Undervalued by 5.10% compared to the current share price ₹383.00

Intrinsic Value of Hikal Ltd as of November 5, 2024 is: 400.03

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 5, 2024, Hikal Ltd is Undervalued by 4.45% compared to the current share price ₹383.00

Last 5 Year EPS CAGR: -0.62%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (747.92 cr) compared to borrowings (631.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (308.00 cr) and profit (108.00 cr) over the years.
  1. The stock has a low average ROCE of 12.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 101.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 159.92, 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 Hikal Ltd:
    1. Net Profit Margin: 3.9%
      • 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: 8.77% (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%: 5.86% (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): 2.23
      • 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: 0.87
      • 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: 69.8 (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: 0.68
      • 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

Hikal Ltd. is a Public Limited Listed company incorporated on 08/07/1988 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24200MH1988PTC048028 and registration number is 048028. Currently Company is involved in the business activities of Manufacture of insecticides, rodenticides, fungicides, herbicides. Company’s Total Operating Revenue is Rs. 1942.72 Cr. and Equity Capital is Rs. 24.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals717/718, Maker Chambers V, Mumbai Maharashtra 400021info@hikal.com
http://www.hikal.com
Management
NamePosition Held
Mr. Jai HiremathExecutive Chairman
Mr. Sameer HiremathManaging Director
Mr. Sarangan SureshWhole Time Director
Ms. Sugandha HiremathNon Executive Director
Mr. Amit KalyaniNon Executive Director
Mrs. Shivani Bhasin SachdevaInd. Non-Executive Director
Mr. Shrikrishna AdivarekarInd. Non-Executive Director
Mr. Ramachandra KaundinyaInd. Non-Executive Director
Mr. Berjis DesaiInd. Non-Executive Director
Mr. Ravi KapoorInd. Non-Executive Director
Mr. Ranjana S SalgaocarInd. Non-Executive Director

FAQ

What is the latest fair value of Hikal Ltd?

The latest fair value of Hikal Ltd is ₹402.53.

What is the Market Cap of Hikal Ltd?

The Market Cap of Hikal Ltd is 4,727 Cr..

What is the current Stock Price of Hikal Ltd as on 04 November 2024?

The current stock price of Hikal Ltd as on 04 November 2024 is 383.

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

In FY 2024, the High / Low of Hikal Ltd stocks is 411/260.

What is the Stock P/E of Hikal Ltd?

The Stock P/E of Hikal Ltd is 69.8.

What is the Book Value of Hikal Ltd?

The Book Value of Hikal Ltd is 96.3.

What is the Dividend Yield of Hikal Ltd?

The Dividend Yield of Hikal Ltd is 0.31 %.

What is the ROCE of Hikal Ltd?

The ROCE of Hikal Ltd is 7.79 %.

What is the ROE of Hikal Ltd?

The ROE of Hikal Ltd is 5.97 %.

What is the Face Value of Hikal Ltd?

The Face Value of Hikal Ltd is 2.00.

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 Hikal 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