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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532859 | NSE: HGS

Hinduja Global Solutions Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:11 pm

Market Cap 3,345 Cr.
Current Price 719
High / Low1,040/708
Stock P/E
Book Value 1,648
Dividend Yield0.97 %
ROCE2.49 %
ROE1.26 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Hinduja Global Solutions Ltd

Competitors of Hinduja Global Solutions Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
eMudhra Ltd 7,354 Cr. 888993/41591.0 83.30.14 %17.7 %14.4 % 5.00
BNR Udyog Ltd 21.6 Cr. 71.9118/51.529.5 35.70.00 %63.6 %53.8 % 10.0
BGIL Films & Technologies Ltd 6.30 Cr. 5.5610.3/2.61 16.90.00 %4.44 %3.46 % 10.0
Aurum Proptech Ltd 644 Cr. 220250/125 97.40.00 %12.0 %27.1 % 5.00
Ace Engitech Ltd 15.2 Cr. 177177/11.9 5.010.00 %23.6 %25.2 % 10.0
Industry Average9,352.46 Cr754.5535.15198.730.43%18.81%17.48%7.47

All Competitor Stocks of Hinduja Global Solutions Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,0661,0521,1101,1491,1681,1191,0701,1331,1801,2041,0991,092
Expenses9789941,0741,0981,0921,0371,0341,0571,0821,0881,0321,075
Operating Profit8858365075823677981156617
OPM %8%6%3%4%6%7%3%7%8%10%6%2%
Other Income1321725,802172248789811410891159345
Interest404037403538243946485156
Depreciation858292106118118114124135142133131
Profit before tax961085,709761705-328251641174
Tax %-14%-28%-0%55%-40%-1,040%-1,020%41%25%50%-112%7%
Net Profit1101375,7333423952261718888162
EPS in Rs25.6132.001,370.428.2856.799.684.823.203.812.1819.4535.59

Last Updated: October 4, 2024, 6:27 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 4, 2024, 6:27 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,9832,5052,8083,3213,7113,8494,4704,9862,6024,2734,5054,6164,574
Expenses1,7602,1832,4953,0103,2933,4404,0524,3202,5204,0024,2574,2554,278
Operating Profit22432231331141840941966781271248360296
OPM %11%13%11%9%11%11%9%13%3%6%6%8%6%
Other Income28342526232147583536,225581472703
Interest443939404335409435161141188201
Depreciation7786105136143141178291117345455534541
Profit before tax1312311931602552542473392825,991232110256
Tax %31%27%15%37%30%22%29%39%-19%-1%-44%-19%
Net Profit911701651001791991762063366,061334131276
EPS in Rs21.9841.1539.8624.3143.2748.2342.4948.4380.391,446.7863.2228.6361.03
Dividend Payout %45%24%25%31%12%10%12%21%25%15%24%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)86.81%-2.94%-39.39%79.00%11.17%-11.56%17.05%63.11%1703.87%-94.49%-60.78%
Change in YoY Net Profit Growth (%)0.00%-89.75%-36.45%118.39%-67.83%-22.73%28.60%46.06%1640.76%-1798.36%33.71%

Hinduja Global Solutions Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:1%
3 Years:21%
TTM:0%
Compounded Profit Growth
10 Years:-5%
5 Years:-11%
3 Years:-39%
TTM:-108%
Stock Price CAGR
10 Years:8%
5 Years:19%
3 Years:-21%
1 Year:-25%
Return on Equity
10 Years:25%
5 Years:29%
3 Years:30%
Last Year:1%

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 Capital212121212121212121425347
Reserves1,2151,4311,0541,1681,3171,4991,6231,6992,0648,0348,4947,441
Borrowings5516346418386625865926051,1801,4099982,107
Other Liabilities2803433584104415157191,7201,0772,1211,7431,461
Total Liabilities2,0662,4302,0732,4362,4402,6202,9554,0454,34211,60511,28811,056
Fixed Assets9421,0887729369499191,0331,7331,5782,1762,8122,756
CWIP4241432155391313
Investments87910511151052,4822,7533,300
Other Assets1,1131,3321,2891,4761,4541,6891,9022,2972,7566,9385,7104,986
Total Assets2,0662,4302,0732,4362,4402,6202,9554,0454,34211,60511,28811,056

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +132235191146409343170884692530111192
Cash from Investing Activity +98-130-62-186-120-55-226-366-2171,87132178
Cash from Financing Activity +-268-14-90-69-246-136-83-310-476-867-1,108-808
Net Cash Flow-379140-10943152-138208-11,534-964-438

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-327.00-312.00-328.00-527.00-244.00-177.00-173.0062.0080.00270.00-750.00358.00

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 Days6668535046789572173615959
Inventory Days
Days Payable
Cash Conversion Cycle6668535046789572173615959
Working Capital Days445045493728514515661197167
ROCE %10%14%12%11%15%15%13%20%1%2%2%2%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters67.13%67.13%67.13%67.13%66.59%66.59%67.72%67.72%67.72%67.72%67.99%67.99%
FIIs7.00%6.08%8.10%15.44%13.40%12.40%12.51%12.41%12.39%12.49%12.51%12.88%
DIIs0.43%0.11%0.09%0.07%0.28%0.29%0.28%0.28%0.27%0.23%0.23%0.23%
Public25.43%26.67%24.67%17.36%19.73%20.72%19.51%19.60%19.63%19.56%19.27%18.90%
No. of Shareholders24,10671,60871,66860,38969,9791,25,38870,88569,89467,69665,50363,62565,101

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 Fund14,7610.31.38342024-11-1243314.71%
Groww Nifty Total Market Index Fund340.010342024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)27.5263.661460.01161.0096.85
Diluted EPS (Rs.)27.5263.661459.48160.8296.79
Cash EPS (Rs.)142.97150.371489.28308.26238.12
Book Value[Excl.RevalReserv]/Share (Rs.)1642.821656.951868.26998.63829.98
Book Value[Incl.RevalReserv]/Share (Rs.)1642.821656.951868.26998.63829.98
Revenue From Operations / Share (Rs.)992.20857.79780.882677.032389.79
PBDIT / Share (Rs.)177.98141.9762.96409.54346.93
PBIT / Share (Rs.)63.2155.2734.03262.24207.35
PBT / Share (Rs.)23.7535.398.93212.65152.07
Net Profit / Share (Rs.)28.1963.661460.35160.9698.54
NP After MI And SOA / Share (Rs.)28.6363.221460.35160.9696.78
PBDIT Margin (%)17.9316.558.0615.2914.51
PBIT Margin (%)6.376.444.359.798.67
PBT Margin (%)2.394.121.147.946.36
Net Profit Margin (%)2.847.42187.016.014.12
NP After MI And SOA Margin (%)2.887.37187.016.014.04
Return on Networth / Equity (%)1.773.8878.1616.1111.74
Return on Capital Employeed (%)3.503.061.7517.2814.52
Return On Assets (%)1.192.9262.817.734.95
Long Term Debt / Equity (X)0.010.010.000.090.17
Total Debt / Equity (X)0.170.030.000.140.29
Asset Turnover Ratio (%)0.410.420.130.650.70
Current Ratio (X)2.332.663.692.131.88
Quick Ratio (X)2.322.653.692.131.88
Dividend Payout Ratio (NP) (%)8.5549.617.4211.1828.01
Dividend Payout Ratio (CP) (%)1.7020.927.285.8311.47
Earning Retention Ratio (%)91.4550.3992.5888.8271.99
Cash Earning Retention Ratio (%)98.3079.0892.7294.1788.53
Interest Coverage Ratio (X)4.515.439.539.687.68
Interest Coverage Ratio (Post Tax) (X)1.712.863.914.983.18
Enterprise Value (Cr.)4018.674673.63761.443347.381019.79
EV / Net Operating Revenue (X)0.871.040.230.590.20
EV / EBITDA (X)4.856.272.893.921.41
MarketCap / Net Operating Revenue (X)0.741.201.310.640.20
Retention Ratios (%)91.4450.3892.5788.8171.98
Price / BV (X)0.450.630.541.720.60
Price / Net Operating Revenue (X)0.741.201.310.640.20
EarningsYield0.030.061.430.090.19

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hinduja Global Solutions Ltd as of November 17, 2024 is: 314.49

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 17, 2024, Hinduja Global Solutions Ltd is Overvalued by 56.26% compared to the current share price 719.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Hinduja Global Solutions Ltd as of November 17, 2024 is: 329.38

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 17, 2024, Hinduja Global Solutions Ltd is Overvalued by 54.19% compared to the current share price 719.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 4.73%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (3,086.58 cr) compared to borrowings (900.25 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (3.08 cr) and profit (207.31 cr) over the years.
  1. The stock has a low average ROCE of 9.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 77.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 73.33, 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 Hinduja Global Solutions Ltd:
    1. Net Profit Margin: 2.84%
      • 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: 3.5% (Industry Average ROCE: 18.81%)
      • 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%: 1.77% (Industry Average ROE: 17.48%)
      • 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): 1.71
      • 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: 2.32
      • 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: 0 (Industry average Stock P/E: 35.15)
      • 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: 0.17
      • 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

Hinduja Global Solutions Ltd. is a Public Limited Listed company incorporated on 13/01/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L92199MH1995PLC084610 and registration number is 084610. Currently Company is involved in the business activities of Other information service activities. Company’s Total Operating Revenue is Rs. 618.29 Cr. and Equity Capital is Rs. 41.80 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Enabled ServicesTower C (1st Floor), Plot C-21, G Block, Mumbai Maharashtra 400051investor.relations@teamhgs.com
http://www.hgs.cx
Management
NamePosition Held
Mr. Ashok P HindujaChairman
Mr. Partha DeSarkarWhole Time Director
Mr. Vynsley FernandesWhole Time Director
Mr. Paul AbrahamNon Executive Director
Mr. Sudhanshu TripathiNon Executive Director
Mr. Anil HarishIndependent Director
Ms. Bhumika BatraIndependent Director
Dr. Ganesh NatarajanIndependent Director
Mr. Pradeep UdhasIndependent Director
Mr. Munesh KhannaIndependent Director

FAQ

What is the latest intrinsic value of Hinduja Global Solutions Ltd?

The latest intrinsic value of Hinduja Global Solutions Ltd as on 17 November 2024 is ₹314.49, which is 56.26% lower than the current market price of ₹719.00.

What is the Market Cap of Hinduja Global Solutions Ltd?

The Market Cap of Hinduja Global Solutions Ltd is 3,345 Cr..

What is the current Stock Price of Hinduja Global Solutions Ltd as on 17 November 2024?

The current stock price of Hinduja Global Solutions Ltd as on 17 November 2024 is ₹719.

What is the High / Low of Hinduja Global Solutions Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hinduja Global Solutions Ltd stocks is 1,040/708.

What is the Stock P/E of Hinduja Global Solutions Ltd?

The Stock P/E of Hinduja Global Solutions Ltd is .

What is the Book Value of Hinduja Global Solutions Ltd?

The Book Value of Hinduja Global Solutions Ltd is 1,648.

What is the Dividend Yield of Hinduja Global Solutions Ltd?

The Dividend Yield of Hinduja Global Solutions Ltd is 0.97 %.

What is the ROCE of Hinduja Global Solutions Ltd?

The ROCE of Hinduja Global Solutions Ltd is 2.49 %.

What is the ROE of Hinduja Global Solutions Ltd?

The ROE of Hinduja Global Solutions Ltd is 1.26 %.

What is the Face Value of Hinduja Global Solutions Ltd?

The Face Value of Hinduja Global Solutions 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 Hinduja Global Solutions 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