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Last Updated on: 26 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Hilton Metal Forging Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 25, 2024, 11:46 pm

Market Cap 194 Cr.
Current Price 81.7
High / Low164/75.5
Stock P/E50.3
Book Value 47.2
Dividend Yield0.00 %
ROCE9.70 %
ROE7.09 %
Face Value 10.0
PEG Ratio1.52

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

View Share Price Target for Hilton Metal Forging Ltd

Competitors of Hilton Metal Forging Ltd

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

All Competitor Stocks of Hilton Metal Forging Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales14.517.8517.8725.1333.2917.8527.2829.0430.6627.6834.8141.74
Expenses13.898.2919.4921.6930.5914.8524.2325.6725.8823.8930.9337.37
Operating Profit0.62-0.44-1.623.442.703.003.053.374.783.793.884.37
OPM %4.27%-5.61%-9.07%13.69%8.11%16.81%11.18%11.60%15.59%13.69%11.15%10.47%
Other Income0.050.03-1.340.03-0.010.030.180.100.240.100.680.32
Interest0.820.750.930.841.661.191.331.391.441.251.161.59
Depreciation0.830.580.590.570.800.580.590.600.600.600.600.60
Profit before tax-0.98-1.74-4.482.060.231.261.311.482.982.042.802.50
Tax %-196.94%13.22%16.52%-5.34%-1,382.61%19.84%15.27%15.54%16.44%16.67%17.14%15.60%
Net Profit-2.91-1.51-3.742.173.411.011.111.252.491.702.332.11
EPS in Rs-1.67-0.87-2.151.251.960.580.530.601.190.811.111.00

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
Sales96157130926780951011034884105122
Expenses87147122866475889496657991106
Operating Profit8108636777-1761416
OPM %9%7%6%6%5%7%7%6%7%-36%7%14%13%
Other Income0000000100-111
Interest4422233334455
Depreciation2222333333322
Profit before tax3542-1-0112-24-279
Tax %43%32%28%42%-16%-95%70%-5%9%17%170%17%
Net Profit2331-2-0022-20268
EPS in Rs0.941.831.750.53-0.91-0.250.160.890.89-11.251.012.793.71
Dividend Payout %19%16%20%33%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%0.00%-66.67%-300.00%100.00%0.00%-1100.00%110.00%200.00%
Change in YoY Net Profit Growth (%)0.00%-50.00%-66.67%-233.33%400.00%-100.00%-1100.00%1210.00%90.00%

Hilton Metal Forging Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:1%
5 Years:7%
3 Years:43%
TTM:26%
Compounded Profit Growth
10 Years:8%
5 Years:34%
3 Years:33%
TTM:-50%
Stock Price CAGR
10 Years:16%
5 Years:45%
3 Years:55%
1 Year:-45%
Return on Equity
10 Years:0%
5 Years:-1%
3 Years:8%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital121212121212121212122121
Reserves464849474747495031326879
Borrowings192327242635424557605354
Other Liabilities32292522304731421392731
Total Liabilities110113114106115142135149113114169185
Fixed Assets363533313637353333312927
CWIP00770000081521
Investments000000000000
Other Assets7379746879105991168075126137
Total Assets110113114106115142135149113114169185

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +10-2553-12409-2410
Cash from Investing Activity +0-0-7-0-0-300-2-933-2
Cash from Financing Activity +-922-5-34-2-31-1-9-8
Net Cash Flow1-1000-0-00-10-00

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow8.00-9.00-15.00-21.00-21.00-20.00-28.00-35.00-38.00-74.00-54.00-39.00

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 Days487077103981066711972610572
Inventory Days103146249329296364317346374293306259
Days Payable76831051331402088112620119770
Cash Conversion Cycle75133221300254262303338426288314262
Working Capital Days95142202266237234251263473243315260
ROCE %11%8%5%1%3%4%5%5%-19%3%10%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.55%49.35%47.30%47.33%39.26%28.07%28.00%27.67%27.67%27.67%27.67%27.67%
FIIs0.00%0.00%0.00%0.00%0.00%0.04%0.00%0.39%0.33%0.27%0.29%0.00%
DIIs0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public48.45%50.65%52.70%52.67%60.74%71.90%72.00%71.94%72.01%72.07%72.06%72.34%
No. of Shareholders8,0959,3909,2728,99710,49911,90411,16811,12710,66811,25613,38417,143

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.)3.182.791.42-15.731.25
Diluted EPS (Rs.)3.182.791.42-15.731.25
Cash EPS (Rs.)4.233.923.46-13.703.33
Book Value[Excl.RevalReserv]/Share (Rs.)47.3942.4436.0734.6550.38
Book Value[Incl.RevalReserv]/Share (Rs.)47.3942.4436.0734.6550.38
Revenue From Operations / Share (Rs.)65.7549.9267.6238.1982.77
PBDIT / Share (Rs.)7.887.034.47-13.696.19
PBIT / Share (Rs.)6.835.902.43-15.724.11
PBT / Share (Rs.)3.753.35-2.01-18.891.37
Net Profit / Share (Rs.)3.182.791.42-15.731.25
PBDIT Margin (%)11.9814.076.61-35.857.47
PBIT Margin (%)10.3911.823.59-41.164.96
PBT Margin (%)5.696.71-2.96-49.451.65
Net Profit Margin (%)4.845.582.09-41.181.50
Return on Networth / Equity (%)6.716.573.92-45.392.47
Return on Capital Employeed (%)12.4311.784.70-31.676.38
Return On Assets (%)3.623.461.54-17.321.03
Long Term Debt / Equity (X)0.140.170.410.340.15
Total Debt / Equity (X)0.510.561.281.250.69
Asset Turnover Ratio (%)0.780.740.740.360.72
Current Ratio (X)1.901.881.371.471.61
Quick Ratio (X)0.760.840.270.410.64
Inventory Turnover Ratio (X)1.681.451.410.801.12
Interest Coverage Ratio (X)2.552.751.33-4.322.26
Interest Coverage Ratio (Post Tax) (X)2.032.091.74-3.971.45
Enterprise Value (Cr.)265.37260.1496.4664.1350.39
EV / Net Operating Revenue (X)1.922.481.151.350.48
EV / EBITDA (X)16.0417.6317.33-3.766.54
MarketCap / Net Operating Revenue (X)1.562.010.470.230.07
Price / BV (X)2.162.370.890.260.13
Price / Net Operating Revenue (X)1.562.010.470.230.07
EarningsYield0.030.020.04-1.720.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hilton Metal Forging Ltd as of November 26, 2024 is: 171.69

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 26, 2024, Hilton Metal Forging Ltd is Undervalued by 110.15% compared to the current share price 81.70

Intrinsic Value of Hilton Metal Forging Ltd as of November 26, 2024 is: 228.42

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 26, 2024, Hilton Metal Forging Ltd is Undervalued by 179.58% compared to the current share price 81.70

Last 5 Year EPS CAGR: 33.04%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (49.42 cr) compared to borrowings (38.75 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (98.46 cr) and profit (0.54 cr) over the years.
  1. The stock has a low average ROCE of 3.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 248.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 264.67, 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 Hilton Metal Forging Ltd:
    1. Net Profit Margin: 4.84%
      • 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: 12.43% (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%: 6.71% (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): 2.03
      • 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: 0.76
      • 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: 50.3 (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: 0.51
      • 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

Hilton Metal Forging Ltd. is a Public Limited Listed company incorporated on 21/07/2005 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L28900MH2005PLC154986 and registration number is 154986. Currently company belongs to the Industry of Forgings. Company’s Total Operating Revenue is Rs. 84.14 Cr. and Equity Capital is Rs. 12.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
ForgingsUnit B-510, Western Edge, II Village, Nr W E Highway, Mumbai Maharashtra 400066secretarial@hiltonmetal.com
http://www.hiltonmetal.com
Management
NamePosition Held
Mr. Yuvraj MalhotraChairman & Managing Director
Mr. Sandeep Ravindra ShahIndependent Director
Ms. Nikita Natwarlal MoradiaIndependent Director
Mr. Prithivish MundraIndependent Director
Mr. Vivek SharmaNon Exe.Non Ind.Director
Mr. Priyam ChaturvediNon Exe.Non Ind.Director

FAQ

What is the latest intrinsic value of Hilton Metal Forging Ltd?

The latest intrinsic value of Hilton Metal Forging Ltd as on 26 November 2024 is ₹171.69, which is 110.15% higher than the current market price of ₹81.70.

What is the Market Cap of Hilton Metal Forging Ltd?

The Market Cap of Hilton Metal Forging Ltd is 194 Cr..

What is the current Stock Price of Hilton Metal Forging Ltd as on 26 November 2024?

The current stock price of Hilton Metal Forging Ltd as on 26 November 2024 is 81.7.

What is the High / Low of Hilton Metal Forging Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hilton Metal Forging Ltd stocks is 164/75.5.

What is the Stock P/E of Hilton Metal Forging Ltd?

The Stock P/E of Hilton Metal Forging Ltd is 50.3.

What is the Book Value of Hilton Metal Forging Ltd?

The Book Value of Hilton Metal Forging Ltd is 47.2.

What is the Dividend Yield of Hilton Metal Forging Ltd?

The Dividend Yield of Hilton Metal Forging Ltd is 0.00 %.

What is the ROCE of Hilton Metal Forging Ltd?

The ROCE of Hilton Metal Forging Ltd is 9.70 %.

What is the ROE of Hilton Metal Forging Ltd?

The ROE of Hilton Metal Forging Ltd is 7.09 %.

What is the Face Value of Hilton Metal Forging Ltd?

The Face Value of Hilton Metal Forging 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 Hilton Metal Forging 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