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Last Updated on: 17 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500191 | NSE: HMT

HMT Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 16, 2024, 11:44 pm

Market Cap 2,808 Cr.
Current Price 79.0
High / Low105/41.0
Stock P/E
Book Value 49.3
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for HMT Ltd

Competitors of HMT Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
VST Tillers Tractors Ltd 3,968 Cr. 4,5884,851/2,96135.6 1,0700.44 %17.6 %13.5 % 10.0
HMT Ltd 2,808 Cr. 79.0105/41.0 49.30.00 %%% 10.0
Escorts Kubota Ltd 43,393 Cr. 3,8794,422/2,64741.2 8300.46 %16.1 %12.0 % 10.0
Industry Average16,723.00 Cr2,848.6738.40649.770.30%16.85%12.75%10.00

All Competitor Stocks of HMT Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales115255823226381084636324932
Expenses3968711305651551376857559553
Operating Profit-28-16-16-48-24-25-17-29-22-20-23-46-21
OPM %-253%-31%-29%-58%-73%-94%-44%-27%-47%-56%-71%-94%-67%
Other Income1010146949916231110102,70414
Interest2125228171917161717171820
Depreciation3232222422222
Profit before tax-43-33-27636-33-36-20-26-30-29-322,638-29
Tax %0%0%0%0%0%0%0%31%0%0%0%-0%0%
Net Profit-43-33-27636-33-36-20-34-30-29-322,641-29
EPS in Rs-1.20-0.93-0.7617.86-0.93-1.03-0.56-0.94-0.84-0.81-0.8974.27-0.81

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales354269275228190195263260204176204163149
Expenses512593567307727318275299274261298274259
Operating Profit-158-324-292-79-537-123-12-39-70-85-94-111-110
OPM %-45%-120%-106%-34%-283%-63%-5%-15%-35%-49%-46%-68%-74%
Other Income2235340-136474824527158702572,7352,738
Interest32826229153626667658474696871
Depreciation1413121011109101010988
Profit before tax-478-246-556-278-562-151156157-105533-1152,5482,549
Tax %0%8%0%0%-3%-0%0%1%4%0%7%-0%
Net Profit-480-265-557-278-544-151155156-110533-1232,5512,552
EPS in Rs-6.32-3.48-4.63-2.31-4.52-1.264.364.38-3.0914.97-3.4671.7371.76
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)44.79%-110.19%50.09%-95.68%72.24%202.65%0.65%-170.51%584.55%-123.08%2173.98%
Change in YoY Net Profit Growth (%)0.00%-154.98%160.28%-145.77%167.93%130.41%-202.00%-171.16%755.06%-707.62%2297.06%

HMT 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:-5%
5 Years:-9%
3 Years:-7%
TTM:-31%
Compounded Profit Growth
10 Years:6%
5 Years:%
3 Years:-6%
TTM:-6%
Stock Price CAGR
10 Years:10%
5 Years:46%
3 Years:37%
1 Year:20%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital7607601,2041,2041,2041,204356356356356356356
Reserves-3,878-4,142-5,149-5,461-6,002-6,098-5,107-4,959-5,069-4,536-4,659-2,108
Borrowings1,6861,9732,2053234,4014,5144,3444,3764,4053,7533,7641,029
Other Liabilities2,0752,1002,4134,7701,0941,0271,1559761,0091,0871,2511,326
Total Liabilities643691673836697647748748700660711604
Fixed Assets12511294887666596660534440
CWIP13131379111576743
Investments211111000000
Other Assets503565565740611569673675635600663560
Total Assets643691673836697647748748700660711604

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -136-170-223-117-661-108-43-269-71-50103-847
Cash from Investing Activity -957-158298188-2745-28-44
Cash from Financing Activity 12424420735454184-246-357-74828
Net Cash Flow-2279-9236-115-168-116-92-1379-63

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-159.00-325.00-294.00-402.00-541.00-127.00-16.00-43.00-74.00-88.00-97.00-112.00

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 Days127124145160185196231211302323333299
Inventory Days5008337586381,0291,1481,243754720667383432
Days Payable170245214304508528628405390361236355
Cash Conversion Cycle456713689494706816846560632630480376
Working Capital Days-1,594-2,100-2,516-6,843-8,556-8,622-6,505-6,511-2,179-1,405-1,519-2,211
ROCE %

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters93.69%93.69%93.69%93.69%93.69%93.69%93.69%93.69%93.69%93.69%93.69%93.69%
Government0.00%0.00%0.00%0.00%5.61%5.61%5.61%5.61%5.61%5.61%5.61%5.61%
Public6.31%6.31%6.31%6.31%0.71%0.70%0.70%0.71%0.71%0.71%0.70%0.70%
No. of Shareholders18,25718,29518,33018,35918,47517,99617,99718,14318,16118,78520,12321,510

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-3.4614.97-3.094.384.36
Diluted EPS (Rs.)-3.4614.97-3.094.384.36
Cash EPS (Rs.)-3.1915.26-2.814.654.63
Book Value[Excl.RevalReserv]/Share (Rs.)-121.01-117.55-132.56-129.47-133.61
Book Value[Incl.RevalReserv]/Share (Rs.)-121.01-117.55-132.56-129.47-133.61
Revenue From Operations / Share (Rs.)5.734.945.737.327.39
PBDIT / Share (Rs.)-1.10-1.71-0.400.250.92
PBIT / Share (Rs.)-1.37-1.98-0.67-0.010.66
PBT / Share (Rs.)-3.28-4.08-3.04-1.85-0.98
Net Profit / Share (Rs.)-3.4614.98-3.094.384.37
NP After MI And SOA / Share (Rs.)-3.4614.97-3.094.384.36
PBDIT Margin (%)-19.27-34.56-7.023.4512.58
PBIT Margin (%)-23.85-40.16-11.78-0.209.06
PBT Margin (%)-57.30-82.53-52.95-25.32-13.30
Net Profit Margin (%)-60.29303.12-53.8259.8959.15
NP After MI And SOA Margin (%)-60.30302.83-53.8259.8858.95
Return on Networth / Equity (%)0.00-12.730.00-3.38-3.26
Return on Capital Employeed (%)1.141.700.510.01-0.53
Return On Assets (%)-17.6583.00-16.0721.4221.57
Long Term Debt / Equity (X)0.000.000.00-0.02-0.04
Total Debt / Equity (X)-0.87-0.88-0.01-0.03-0.05
Asset Turnover Ratio (%)0.300.010.020.020.02
Current Ratio (X)0.120.100.110.120.12
Quick Ratio (X)0.100.070.080.090.09
Inventory Turnover Ratio (X)0.780.050.140.180.14
Interest Coverage Ratio (X)-0.56-0.81-0.170.130.48
Interest Coverage Ratio (Post Tax) (X)-0.81-0.94-0.33-0.020.34
Enterprise Value (Cr.)4381.404503.52954.62243.66676.93
EV / Net Operating Revenue (X)21.5025.634.680.932.58
EV / EBITDA (X)-111.51-74.14-66.6827.0920.47
MarketCap / Net Operating Revenue (X)4.265.255.351.182.53
Price / BV (X)-0.20-0.22-0.23-0.06-0.13
Price / Net Operating Revenue (X)4.265.255.351.182.53
EarningsYield-0.140.57-0.100.500.23

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of HMT Ltd as of October 16, 2024 is: ₹113.14

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 October 16, 2024, HMT Ltd is Undervalued by 43.22% compared to the current share price ₹79.00

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

Intrinsic Value of HMT Ltd as of October 16, 2024 is: ₹268.91

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 October 16, 2024, HMT Ltd is Undervalued by 240.39% compared to the current share price ₹79.00

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

Last 5 Year EPS CAGR: 137.68%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -3.75, which is a positive sign.
  1. The stock has a low average ROCE of 0.00%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 616.50, which may not be favorable.
  3. The company has higher borrowings (3,064.42) compared to reserves (-4,764.00), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (225.38) and profit (-126.23).

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 HMT Ltd:
    1. Net Profit Margin: -60.29%
      • 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: 1.14% (Industry Average ROCE: 16.85%)
      • 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%: 0% (Industry Average ROE: 12.75%)
      • 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): -0.81
      • 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: 0.1
      • 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: 38.4)
      • 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: -0.87
      • 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

HMT Ltd. is a Public Limited Listed company incorporated on 07/02/1953 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L29230KA1953GOI000748 and registration number is 000748. Currently company belongs to the Industry of Auto - Tractors. Company’s Total Operating Revenue is Rs. 12.58 Cr. and Equity Capital is Rs. 355.60 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto - TractorsHMT Bhavan No. 59, Bellary Road, Bengaluru Karnataka 560032cosey@hmtindia.com
http://www.hmtindia.com
Management
NamePosition Held
Mr. Pankaj GuptaChairman & Managing Director
Ms. Arti BhatnagarDirector
Ms. Mukta ShekharDirector
Ms. Rita SaxenaDirector - Finance

FAQ

What is the latest fair value of HMT Ltd?

The latest fair value of HMT Ltd is ₹113.14.

What is the Market Cap of HMT Ltd?

The Market Cap of HMT Ltd is 2,808 Cr..

What is the current Stock Price of HMT Ltd as on 16 October 2024?

The current stock price of HMT Ltd as on 16 October 2024 is ₹79.0.

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

In FY 2024, the High / Low of HMT Ltd stocks is 105/41.0.

What is the Stock P/E of HMT Ltd?

The Stock P/E of HMT Ltd is .

What is the Book Value of HMT Ltd?

The Book Value of HMT Ltd is 49.3.

What is the Dividend Yield of HMT Ltd?

The Dividend Yield of HMT Ltd is 0.00 %.

What is the ROCE of HMT Ltd?

The ROCE of HMT Ltd is %.

What is the ROE of HMT Ltd?

The ROE of HMT Ltd is %.

What is the Face Value of HMT Ltd?

The Face Value of HMT 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 HMT 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