Hinduja Global Solutions Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:27 am

Market Cap	3,230 Cr.
Current Price	694
High / Low	1,012/593
Stock P/E
Book Value	1,648
Dividend Yield	1.01 %
ROCE	2.49 %
ROE	1.26 %
Face Value	10.0
PEG Ratio	0.00

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
N2N Technologies Ltd	5.83 Cr.	18.0	33.0/18.0		16.8	0.00 %	0.69 %	0.63 %	10.0
eMudhra Ltd	7,829 Cr.	945	1,024/415	96.9	83.3	0.13 %	17.7 %	14.4 %	5.00
BNR Udyog Ltd	19.6 Cr.	65.4	118/51.7	26.9	35.7	0.00 %	63.6 %	53.8 %	10.0
BGIL Films & Technologies Ltd	7.22 Cr.	6.37	10.3/3.28		16.9	0.00 %	4.44 %	3.46 %	10.0
Aurum Proptech Ltd	644 Cr.	220	250/125		97.4	0.00 %	12.0 %	27.1 %	5.00
Industry Average	10,078.58 Cr	721.18		36.18	190.10	0.42%	17.89%	16.59%	7.60

All Competitor Stocks of

Quarterly Result

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	1,066	1,052	1,110	1,149	1,168	1,119	1,070	1,133	1,180	1,204	1,099	1,092
Expenses	978	994	1,074	1,098	1,092	1,037	1,034	1,057	1,082	1,088	1,032	1,075
Operating Profit	88	58	36	50	75	82	36	77	98	115	66	17
OPM %	8%	6%	3%	4%	6%	7%	3%	7%	8%	10%	6%	2%
Other Income	132	172	5,802	172	248	78	98	114	108	91	159	345
Interest	40	40	37	40	35	38	24	39	46	48	51	56
Depreciation	85	82	92	106	118	118	114	124	135	142	133	131
Profit before tax	96	108	5,709	76	170	5	-3	28	25	16	41	174
Tax %	-14%	-28%	-0%	55%	-40%	-1,040%	-1,020%	41%	25%	50%	-112%	7%
Net Profit	110	137	5,733	34	239	52	26	17	18	8	88	162
EPS in Rs	25.61	32.00	1,370.42	8.28	56.79	9.68	4.82	3.20	3.81	2.18	19.45	35.59

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

Quarterly Chart

Profit & Loss - Annual Report

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	1,983	2,505	2,808	3,321	3,711	3,849	4,470	4,986	2,602	4,273	4,505	4,616	4,574
Expenses	1,760	2,183	2,495	3,010	3,293	3,440	4,052	4,320	2,520	4,002	4,257	4,255	4,278
Operating Profit	224	322	313	311	418	409	419	667	81	271	248	360	296
OPM %	11%	13%	11%	9%	11%	11%	9%	13%	3%	6%	6%	8%	6%
Other Income	28	34	25	26	23	21	47	58	353	6,225	581	472	703
Interest	44	39	39	40	43	35	40	94	35	161	141	188	201
Depreciation	77	86	105	136	143	141	178	291	117	345	455	534	541
Profit before tax	131	231	193	160	255	254	247	339	282	5,991	232	110	256
Tax %	31%	27%	15%	37%	30%	22%	29%	39%	-19%	-1%	-44%	-19%
Net Profit	91	170	165	100	179	199	176	206	336	6,061	334	131	276
EPS in Rs	21.98	41.15	39.86	24.31	43.27	48.23	42.49	48.43	80.39	1,446.78	63.22	28.63	61.03
Dividend Payout %	45%	24%	25%	31%	12%	10%	12%	21%	25%	15%	24%	24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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%

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:	18%
3 Years:	-25%
1 Year:	-30%

Return on Equity
10 Years:	25%
5 Years:	29%
3 Years:	30%
Last Year:	1%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 3:30 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	21	21	21	21	21	21	21	21	21	42	53	47	47
Reserves	1,215	1,431	1,054	1,168	1,317	1,499	1,623	1,699	2,064	8,034	8,494	7,441	7,621
Borrowings	551	634	641	838	662	586	592	605	1,180	1,409	998	2,107	2,172
Other Liabilities	280	343	358	410	441	515	719	1,720	1,077	2,121	1,743	1,461	1,689
Total Liabilities	2,066	2,430	2,073	2,436	2,440	2,620	2,955	4,045	4,342	11,605	11,288	11,056	11,529
Fixed Assets	942	1,088	772	936	949	919	1,033	1,733	1,578	2,176	2,812	2,756	2,962
CWIP	4	2	4	14	32	1	5	5	3	9	13	13	9
Investments	8	7	9	10	5	11	15	10	5	2,482	2,753	3,300	3,517
Other Assets	1,113	1,332	1,289	1,476	1,454	1,689	1,902	2,297	2,756	6,938	5,710	4,986	5,041
Total Assets	2,066	2,430	2,073	2,436	2,440	2,620	2,955	4,045	4,342	11,605	11,288	11,056	11,529

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	132	235	191	146	409	343	170	884	692	530	111	192
Cash from Investing Activity +	98	-130	-62	-186	-120	-55	-226	-366	-217	1,871	32	178
Cash from Financing Activity +	-268	-14	-90	-69	-246	-136	-83	-310	-476	-867	-1,108	-808
Net Cash Flow	-37	91	40	-109	43	152	-138	208	-1	1,534	-964	-438

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-327.00	-312.00	-328.00	-527.00	-244.00	-177.00	-173.00	62.00	80.00	270.00	-750.00	358.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	66	68	53	50	46	78	95	72	173	61	59	59
Inventory Days
Days Payable
Cash Conversion Cycle	66	68	53	50	46	78	95	72	173	61	59	59
Working Capital Days	44	50	45	49	37	28	51	45	156	61	197	167
ROCE %	10%	14%	12%	11%	15%	15%	13%	20%	1%	2%	2%	2%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	67.13%	67.13%	67.13%	67.13%	66.59%	66.59%	67.72%	67.72%	67.72%	67.72%	67.99%	67.99%
FIIs	7.00%	6.08%	8.10%	15.44%	13.40%	12.40%	12.51%	12.41%	12.39%	12.49%	12.51%	12.88%
DIIs	0.43%	0.11%	0.09%	0.07%	0.28%	0.29%	0.28%	0.28%	0.27%	0.23%	0.23%	0.23%
Public	25.43%	26.67%	24.67%	17.36%	19.73%	20.72%	19.51%	19.60%	19.63%	19.56%	19.27%	18.90%
No. of Shareholders	24,106	71,608	71,668	60,389	69,979	1,25,388	70,885	69,894	67,696	65,503	63,625	65,101

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Motilal Oswal Nifty Microcap 250 Index Fund	14,761	0.3	1.38	34	2024-12-17	43314.71%
Groww Nifty Total Market Index Fund	34	0.01	0	34	2024-12-17	0%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	27.52	63.66	1460.01	161.00	96.85
Diluted EPS (Rs.)	27.52	63.66	1459.48	160.82	96.79
Cash EPS (Rs.)	142.97	150.37	1489.28	308.26	238.12
Book Value[Excl.RevalReserv]/Share (Rs.)	1642.82	1656.95	1868.26	998.63	829.98
Book Value[Incl.RevalReserv]/Share (Rs.)	1642.82	1656.95	1868.26	998.63	829.98
Revenue From Operations / Share (Rs.)	992.20	857.79	780.88	2677.03	2389.79
PBDIT / Share (Rs.)	177.98	141.97	62.96	409.54	346.93
PBIT / Share (Rs.)	63.21	55.27	34.03	262.24	207.35
PBT / Share (Rs.)	23.75	35.39	8.93	212.65	152.07
Net Profit / Share (Rs.)	28.19	63.66	1460.35	160.96	98.54
NP After MI And SOA / Share (Rs.)	28.63	63.22	1460.35	160.96	96.78
PBDIT Margin (%)	17.93	16.55	8.06	15.29	14.51
PBIT Margin (%)	6.37	6.44	4.35	9.79	8.67
PBT Margin (%)	2.39	4.12	1.14	7.94	6.36
Net Profit Margin (%)	2.84	7.42	187.01	6.01	4.12
NP After MI And SOA Margin (%)	2.88	7.37	187.01	6.01	4.04
Return on Networth / Equity (%)	1.77	3.88	78.16	16.11	11.74
Return on Capital Employeed (%)	3.50	3.06	1.75	17.28	14.52
Return On Assets (%)	1.19	2.92	62.81	7.73	4.95
Long Term Debt / Equity (X)	0.01	0.01	0.00	0.09	0.17
Total Debt / Equity (X)	0.17	0.03	0.00	0.14	0.29
Asset Turnover Ratio (%)	0.41	0.42	0.13	0.65	0.70
Current Ratio (X)	2.33	2.66	3.69	2.13	1.88
Quick Ratio (X)	2.32	2.65	3.69	2.13	1.88
Dividend Payout Ratio (NP) (%)	8.55	49.61	7.42	11.18	28.01
Dividend Payout Ratio (CP) (%)	1.70	20.92	7.28	5.83	11.47
Earning Retention Ratio (%)	91.45	50.39	92.58	88.82	71.99
Cash Earning Retention Ratio (%)	98.30	79.08	92.72	94.17	88.53
Interest Coverage Ratio (X)	4.51	5.43	9.53	9.68	7.68
Interest Coverage Ratio (Post Tax) (X)	1.71	2.86	3.91	4.98	3.18
Enterprise Value (Cr.)	4018.67	4673.63	761.44	3347.38	1019.79
EV / Net Operating Revenue (X)	0.87	1.04	0.23	0.59	0.20
EV / EBITDA (X)	4.85	6.27	2.89	3.92	1.41
MarketCap / Net Operating Revenue (X)	0.74	1.20	1.31	0.64	0.20
Retention Ratios (%)	91.44	50.38	92.57	88.81	71.98
Price / BV (X)	0.45	0.63	0.54	1.72	0.60
Price / Net Operating Revenue (X)	0.74	1.20	1.31	0.64	0.20
EarningsYield	0.03	0.06	1.43	0.09	0.19

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 314.62

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 December 21, 2024, is Overvalued by 54.67% compared to the current share price 694.00

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

Intrinsic Value of as of December 21, 2024 is: 329.51

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 December 21, 2024, is Overvalued by 52.52% compared to the current share price 694.00

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

Strength	Weakness
The company has higher reserves (3,435.38 cr) compared to borrowings (998.08 cr), indicating strong financial stability. The company has shown consistent growth in sales (3.08 cr) and profit (207.31 cr) over the years.	The stock has a low average ROCE of 9.75%, which may not be favorable. The stock has a high average Working Capital Days of 77.50, which may not be favorable. The stock has a high average Cash Conversion Cycle of 73.33, which may not be favorable.

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 :
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: 17.89%)
  - 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: 16.59%)
  - 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: 23.52)
  - 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.

INDUSTRY	ADDRESS	CONTACT
IT Enabled Services	Tower C (1st Floor), Plot C-21, G Block, Mumbai Maharashtra 400051	investor.relations@teamhgs.com http://www.hgs.cx

Management
Name	Position Held
Mr. Ashok P Hinduja	Chairman
Mr. Partha DeSarkar	Whole Time Director
Mr. Vynsley Fernandes	Whole Time Director
Mr. Paul Abraham	Non Executive Director
Mr. Sudhanshu Tripathi	Non Executive Director
Mr. Anil Harish	Independent Director
Ms. Bhumika Batra	Independent Director
Dr. Ganesh Natarajan	Independent Director
Mr. Pradeep Udhas	Independent Director
Mr. Munesh Khanna	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹314.62, which is 54.67% lower than the current market price of ₹694.00. The stock has a market capitalization of 3,230 Cr. and recorded a high/low of 1,012/593 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹7,621 Cr and total liabilities of ₹11,529 Cr.

What is the Market Cap of ?

The Market Cap of is 3,230 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 694.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 1,012/593.

What is the Stock P/E of ?

The Stock P/E of is .

What is the Book Value of ?

The Book Value of is 1,648.

What is the Dividend Yield of ?

The Dividend Yield of is 1.01 %.

What is the ROCE of ?

The ROCE of is 2.49 %.

What is the ROE of ?

The ROE of is 1.26 %.

What is the Face Value of ?

The Face Value of is 10.0.