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Last Updated on: 27 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of HOV Services Ltd

About the Company - HOV Services Ltd

HOV Services Ltd. is a Public Limited Listed company incorporated on 10/01/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72200PN1989PLC014448 and registration number is 014448. Currently Company is involved in the business activities of Other information technology and computer service activities n.e.c. Company’s Total Operating Revenue is Rs. 10.06 Cr. and Equity Capital is Rs. 12.60 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Enabled Services3rd Floor, Sharda Arcade, Pune Satara Road, Pune Maharashtra 411037investor.relations@hovsltd.com
http://www.hovsltd.com
Management
NamePosition Held
Mr. Parvinder S ChadhaChairman & Executive Director
Mr. Sunil RajadhyakshaExecutive Director
Mr. Vikram NegiExecutive Director
Mr. Harjit Singh AnandIndependent Director
Mr. Ajay PuriIndependent Director
Mrs. Lakshmi KumarIndependent Director

Basic Stock Data of HOV Services Ltd

Last Updated: July 26, 2024, 10:35 pm

Market Cap 85.8 Cr.
Current Price 68.5
High / Low97.4/44.5
Stock P/E31.9
Book Value 18.1
Dividend Yield0.00 %
ROCE15.8 %
ROE11.8 %
Face Value 10.0
PEG Ratio1.03

Data Source: screener.in

HOV Services Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2.552.282.462.452.502.652.922.983.023.133.574.293.99
Expenses1.941.591.891.921.881.992.352.312.362.633.033.593.35
Operating Profit0.610.690.570.530.620.660.570.670.660.500.540.700.64
OPM %23.92%30.26%23.17%21.63%24.80%24.91%19.52%22.48%21.85%15.97%15.13%16.32%16.04%
Other Income0.300.850.330.320.310.401.461.420.450.580.400.480.42
Interest0.29-0.780.030.030.020.020.010.060.050.040.040.030.03
Depreciation0.160.150.160.160.150.150.130.140.180.160.160.160.16
Profit before tax0.462.170.710.660.760.891.891.890.880.880.740.990.87
Tax %45.65%10.14%28.17%27.27%30.26%30.34%13.23%14.81%44.32%4.55%31.08%26.26%27.59%
Net Profit0.261.950.520.480.530.621.641.610.490.840.520.730.63
EPS in Rs0.211.550.410.380.420.491.301.280.390.670.410.580.50

Last Updated: July 11, 2024, 8:58 am

HOV Services Ltd Quarterly Chart

HOV Services Ltd Profit & Loss

Last Updated: July 10, 2024, 6:00 pm

MonthDec 2011Dec 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales10.5414.0217.3316.4015.1515.4313.6010.5410.979.6610.0612.0614.01
Expenses9.2615.4419.8418.2114.8615.3613.3910.289.457.317.689.6611.61
Operating Profit1.28-1.42-2.51-1.810.290.070.210.261.522.352.382.402.40
OPM %12.14%-10.13%-14.48%-11.04%1.91%0.45%1.54%2.47%13.86%24.33%23.66%19.90%17.13%
Other Income0.991.561.010.571.121.014.180.961.241.721.353.901.91
Interest0.000.000.160.410.610.620.250.000.720.120.090.160.16
Depreciation0.280.500.971.010.970.851.070.530.550.620.620.600.66
Profit before tax1.99-0.36-2.63-2.66-0.17-0.393.070.691.493.333.025.543.49
Tax %40.20%-213.89%-16.73%6.77%-258.82%-151.28%22.80%75.36%55.03%22.52%28.81%17.51%
Net Profit-9.244.00-49.52-155.79-275.64-145.562.380.180.672.572.154.572.58
EPS in Rs-7.403.91-39.11-124.12-219.94-116.151.900.140.532.041.713.632.05
Dividend Payout %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

HOV Services Ltd Profit & Loss Yearly Chart

HOV Services Ltd Growth

Compounded Sales Growth
10 Years:-1%
5 Years:9%
3 Years:19%
TTM:34%
Compounded Profit Growth
10 Years:7%
5 Years:72%
3 Years:2%
TTM:-40%
Stock Price CAGR
10 Years:-4%
5 Years:3%
3 Years:0%
1 Year:45%
Return on Equity
10 Years:-24%
5 Years:3%
3 Years:8%
Last Year:12%

Last Updated: July 17, 2024, 5:37 pm

HOV Services Ltd Balance Sheet

Last Updated: July 10, 2024, 6:00 pm

MonthDec 2011Dec 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12.4912.4912.5012.5112.5312.5312.5412.5912.5912.5912.6012.6012.60
Reserves199.67201.85155.81565.62324.9221.50703.76431.0321.1583.3517.369.9911.05
Borrowings0.008.4610.2312.5913.3712.875.224.293.642.983.061.421.24
Other Liabilities10.9811.365.997.436.915.55287.86159.8914.2816.7412.2513.6611.86
Total Liabilities223.14234.16184.53598.15357.7352.451,009.38607.8051.66115.6645.2737.6736.75
Fixed Assets1.275.154.793.793.1011.8310.7410.1910.319.8210.9910.399.98
CWIP0.000.000.000.000.000.000.000.000.000.000.000.000.00
Investments191.91205.17161.19572.78332.5120.32987.24586.2326.5991.8918.097.006.90
Other Assets29.9623.8418.5521.5822.1220.3011.4011.3814.7613.9516.1920.2819.87
Total Assets223.14234.16184.53598.15357.7352.451,009.38607.8051.66115.6645.2737.6736.75

HOV Services Ltd Reserves and Borrowings Chart

HOV Services Ltd Cash Flow

MonthDec 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -5.77-7.35-3.64-1.251.259.892.68-2.611.67-0.112.19-1.35
Cash from Investing Activity -11.941.011.231.690.950.630.64-10.840.881.192.611.39
Cash from Financing Activity 8.260.301.10-0.70-1.12-7.87-1.288.36-2.12-2.09-1.29-0.50
Net Cash Flow-9.45-6.04-1.31-0.271.092.662.04-5.090.43-1.013.51-0.46

HOV Services Ltd Financial Efficiency Indicators

MonthDec 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days108.0460.6695.26126.24102.66115.6797.31193.65187.03188.67184.62187.48
Inventory Days0.00
Days Payable
Cash Conversion Cycle108.0460.6695.26126.24102.66115.6797.31193.65187.03188.67184.62187.48
Working Capital Days-125.2210.329.7947.221.4238.92-9.35-277.16-241.82-237.65-209.74-67.70
ROCE %-0.17%-1.23%-0.58%0.09%0.12%0.87%0.12%0.91%5.06%4.70%19.46%

HOV Services Ltd Financial Efficiency Indicators Chart

HOV Services Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters50.44%50.44%50.44%50.42%50.42%50.41%50.41%50.41%50.41%50.41%50.41%50.41%
Public49.56%49.56%49.56%49.58%49.58%49.59%49.58%49.58%49.57%49.58%49.59%49.58%
No. of Shareholders7,8458,2918,2308,3528,6068,5528,4928,5239,0278,6319,9699,470

HOV Services Ltd Shareholding Pattern Chart

No. of HOV Services Ltd Shareholders

This stock is not held by any mutual fund

HOV Services Ltd ROCE Trend

HOV Services Ltd EPS Trend

HOV Services Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)2.133.631.712.040.53
Diluted EPS (Rs.)2.133.631.712.040.53
Cash EPS (Rs.)2.634.112.202.540.97
Book Value[Excl.RevalReserv]/Share (Rs.)18.1417.9323.7876.2126.80
Book Value[Incl.RevalReserv]/Share (Rs.)18.1417.9323.7876.2126.80
Revenue From Operations / Share (Rs.)12.809.577.997.678.71
PBDIT / Share (Rs.)3.504.932.963.092.81
PBIT / Share (Rs.)3.004.452.462.592.37
PBT / Share (Rs.)2.904.332.392.501.80
Net Profit / Share (Rs.)2.133.631.712.040.53
NP After MI And SOA / Share (Rs.)2.133.631.712.040.53
PBDIT Margin (%)27.3851.5537.0240.2432.22
PBIT Margin (%)23.4746.5430.8233.7827.17
PBT Margin (%)22.6745.2129.9232.5620.63
Net Profit Margin (%)16.6637.9021.3626.646.11
NP After MI And SOA Margin (%)16.6637.9021.3626.646.11
Return on Networth / Equity (%)11.7520.227.172.681.98
Return on Capital Employeed (%)16.0723.739.723.168.16
Return On Assets (%)7.5212.134.742.191.29
Long Term Debt / Equity (X)0.000.000.000.010.06
Total Debt / Equity (X)0.000.000.020.010.06
Asset Turnover Ratio (%)0.430.330.140.130.03
Current Ratio (X)1.631.110.780.910.69
Quick Ratio (X)1.631.110.780.910.69
Interest Coverage Ratio (X)34.3138.9741.0633.044.93
Interest Coverage Ratio (Post Tax) (X)21.5829.1124.6121.363.02
Enterprise Value (Cr.)61.1743.8750.9968.8427.58
EV / Net Operating Revenue (X)3.793.645.077.132.51
EV / EBITDA (X)13.857.0613.6917.717.80
MarketCap / Net Operating Revenue (X)4.484.385.477.782.66
Price / BV (X)3.162.341.840.780.86
Price / Net Operating Revenue (X)4.484.385.477.782.66
EarningsYield0.030.080.030.030.02

HOV Services Ltd Profitability Ratios (%)

HOV Services Ltd Liquidity Ratios

HOV Services Ltd Liquidity Ratios (%)

HOV Services Ltd Interest Coverage Ratios (%)

HOV Services Ltd Valuation Ratios

Fair Value

Fair Value: 69.49

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.

Undervalued: 1.45% compared to the current price 68.5

Intrinsic Value: 91.09

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 32.97% compared to the current price 68.5

Last 5 Year EPS CAGR: 31.07%

*Investments are subject to market risks

Strength and Weakness of HOV Services Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -88.41, which is a positive sign.
  2. The company has higher reserves (212.22 cr) compared to borrowings (6.60 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (13.06 cr) and profit (1.26 cr) over the years.
  1. The stock has a low average ROCE of 2.45%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 137.27, which may not be favorable.

FAQ

What is the latest fair value of HOV Services Ltd?

The latest fair value of HOV Services Ltd is ₹69.49.

What is the Market Cap of HOV Services Ltd?

The Market Cap of HOV Services Ltd is 85.8 Cr..

What is the current Stock Price of HOV Services Ltd as on 27 July 2024?

The current stock price of HOV Services Ltd as on 27 July 2024 is 68.5.

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

In FY 2024, the High / Low of HOV Services Ltd stocks is 97.4/44.5.

What is the Stock P/E of HOV Services Ltd?

The Stock P/E of HOV Services Ltd is 31.9.

What is the Book Value of HOV Services Ltd?

The Book Value of HOV Services Ltd is 18.1.

What is the Dividend Yield of HOV Services Ltd?

The Dividend Yield of HOV Services Ltd is 0.00 %.

What is the ROCE of HOV Services Ltd?

The ROCE of HOV Services Ltd is 15.8 %.

What is the ROE of HOV Services Ltd?

The ROE of HOV Services Ltd is 11.8 %.

What is the Face Value of HOV Services Ltd?

The Face Value of HOV Services 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 HOV Services 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