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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

The Hi-Tech Gears Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:43 am

Market Cap 1,555 Cr.
Current Price 828
High / Low 1,280/398
Stock P/E27.4
Book Value 261
Dividend Yield0.60 %
ROCE12.5 %
ROE12.2 %
Face Value 10.0
PEG Ratio0.40

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

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Him Teknoforge Ltd 203 Cr. 230 274/11523.8 2370.17 %8.63 %4.10 % 2.00
The Hi-Tech Gears Ltd 1,555 Cr. 828 1,280/39827.4 2610.60 %12.5 %12.2 % 10.0
Shanthi Gears Ltd 3,809 Cr. 496 704/47342.1 49.11.01 %33.5 %25.0 % 1.00
JTEKT India Ltd 4,123 Cr. 162 226/13852.5 30.00.37 %15.9 %12.4 % 1.00
Bharat Gears Ltd 151 Cr. 98.5 134/94.233.4 79.70.00 %1.65 %9.13 % 10.0
Industry Average1,968.20 Cr362.9035.84131.360.43%14.44%12.57%4.80

All Competitor Stocks of

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales207252223289292314277287264284273287261
Expenses186232217254260275239253230248232246220
Operating Profit2120635323938333335414141
OPM %10%8%3%12%11%12%14%12%13%12%15%14%16%
Other Income21322321378232
Interest66788899914876
Depreciation12121415202424151515151616
Profit before tax63-12146108101285202121
Tax %42%204%12%20%94%64%67%-62%24%15%25%16%33%
Net Profit3-3-131104317972151814
EPS in Rs1.84-1.46-6.965.990.201.881.378.874.9638.487.949.507.58

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1954717499147227469711,1691,107
Expenses1784156548006386568891,028957
Operating Profit175695113849082141150
OPM %9%12%13%12%12%12%8%12%14%
Other Income77201711108887
Interest5424293323263338
Depreciation92639424343528261
Profit before tax933525919341134138
Tax %40%38%34%39%56%15%110%32%17%
Net Profit6203436829-123114
EPS in Rs10.7318.2418.964.4115.34-0.5912.3160.84
Dividend Payout %42%23%19%18%34%13%-256%20%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)70.00%5.88%-77.78%262.50%-103.45%2400.00%395.65%
Change in YoY Net Profit Growth (%)0.00%-64.12%-83.66%340.28%-365.95%2503.45%-2004.35%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:4%
3 Years:14%
TTM:-4%
Compounded Profit Growth
10 Years:%
5 Years:11%
3 Years:20%
TTM:62%
Stock Price CAGR
10 Years:11%
5 Years:40%
3 Years:49%
1 Year:80%
Return on Equity
10 Years:%
5 Years:7%
3 Years:7%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:30 pm

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital9191919191919191919
Reserves30183222253257302312336447471
Borrowings90319366440352427471457298261
Other Liabilities52160128155161174201171144129
Total Liabilities1816807348677899221,002983908879
Fixed Assets105403423444446468528496462469
CWIP71113193471381342
Investments000481012121212
Other Assets70267298400301373424462430396
Total Assets1816807348677899221,002983908879

Reserves and Borrowings Chart

Cash Flow

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +15541547184375654117
Cash from Investing Activity +-48-119-72-85-40-51-56-41143
Cash from Financing Activity +33261860-1512511-41-280
Net Cash Flow1-40-3922-71210-27-19

Free Cash Flow

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-73.00-263.00-271.00-327.00-268.00-337.00-389.00-316.00-148.00

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 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days348275684673656566
Inventory Days1248566879291887579
Days Payable1588675791021121097369
Cash Conversion Cycle08166763752456776
Working Capital Days39285351854496274
ROCE %13%12%8%8%5%8%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters56.00%56.22%56.22%56.22%56.22%56.22%56.22%56.26%56.26%56.26%56.23%56.23%
FIIs0.00%0.02%0.00%0.00%0.00%0.00%0.00%0.00%0.02%0.00%0.06%0.01%
DIIs0.01%0.00%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Government0.00%0.00%0.00%0.00%0.01%0.01%0.02%0.02%0.02%0.02%0.02%0.02%
Public43.99%43.76%43.78%43.78%43.76%43.77%43.77%43.72%43.69%43.73%43.70%43.75%
No. of Shareholders7,7857,5837,4637,5547,7366,6436,3097,1767,4147,2849,56711,872

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.)60.8612.32-0.5915.344.41
Diluted EPS (Rs.)60.7312.30-0.5915.344.41
Cash EPS (Rs.)93.4256.0927.2738.2927.34
Book Value[Excl.RevalReserv]/Share (Rs.)248.24188.85176.23170.90147.18
Book Value[Incl.RevalReserv]/Share (Rs.)248.24188.85176.23170.90147.18
Revenue From Operations / Share (Rs.)589.47622.99517.17397.24384.71
PBDIT / Share (Rs.)85.1479.5347.7653.4850.70
PBIT / Share (Rs.)52.5635.7619.9030.5327.77
PBT / Share (Rs.)73.4518.095.8118.1210.11
Net Profit / Share (Rs.)60.8412.32-0.5815.344.41
NP After MI And SOA / Share (Rs.)60.8412.32-0.5815.344.41
PBDIT Margin (%)14.4412.769.2313.4613.17
PBIT Margin (%)8.915.733.847.687.21
PBT Margin (%)12.462.901.124.562.62
Net Profit Margin (%)10.321.97-0.113.861.14
NP After MI And SOA Margin (%)10.321.97-0.113.861.14
Return on Networth / Equity (%)24.506.52-0.338.972.99
Return on Capital Employeed (%)16.0511.145.658.668.76
Return On Assets (%)12.572.34-0.103.121.04
Long Term Debt / Equity (X)0.110.610.901.031.09
Total Debt / Equity (X)0.411.221.341.161.09
Asset Turnover Ratio (%)1.171.180.780.730.70
Current Ratio (X)1.421.161.201.351.43
Quick Ratio (X)0.990.840.851.000.99
Inventory Turnover Ratio (X)4.444.803.883.542.88
Dividend Payout Ratio (NP) (%)4.100.000.000.0095.68
Dividend Payout Ratio (CP) (%)2.670.000.000.0015.43
Earning Retention Ratio (%)95.900.000.000.004.32
Cash Earning Retention Ratio (%)97.330.000.000.0084.57
Interest Coverage Ratio (X)4.234.503.394.312.87
Interest Coverage Ratio (Post Tax) (X)1.991.700.952.241.25
Enterprise Value (Cr.)1583.85827.56761.72620.24364.19
EV / Net Operating Revenue (X)1.430.700.780.830.50
EV / EBITDA (X)9.915.548.506.183.83
MarketCap / Net Operating Revenue (X)1.300.400.410.430.18
Retention Ratios (%)95.890.000.000.004.31
Price / BV (X)3.101.341.221.010.48
Price / Net Operating Revenue (X)1.300.400.410.430.18
EarningsYield0.070.040.000.080.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 877.71

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 22, 2024, is Undervalued by 6.00% compared to the current share price 828.00

Intrinsic Value of as of December 22, 2024 is: 1,483.55

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 22, 2024, is Undervalued by 79.17% compared to the current share price 828.00

Last 5 Year EPS CAGR: 69.02%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (530.00 cr) and profit (43.22 cr) over the years.
  1. The stock has a low average ROCE of 7.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 46.44, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 55.56, which may not be favorable.
  4. The company has higher borrowings (348.10) compared to reserves (281.30), which may suggest financial risk.
  • 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: 10.32%
      • 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: 16.05% (Industry Average ROCE: 14.44%)
      • 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%: 24.5% (Industry Average ROE: 12.57%)
      • 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): 1.99
      • 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: 0.99
      • 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: 27.4 (Industry average Stock P/E: 35.84)
      • 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: 0.41
      • 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

The Hi-Tech Gears Ltd. is a Public Limited Listed company incorporated on 23/10/1986 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L29130HR1986PLC081555 and registration number is 004536. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 644.60 Cr. and Equity Capital is Rs. 18.77 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Gears & DrivePlot No. 24, 25 & 26, Gurgaon Haryana 122050secretarial@thehitechgears.com
http://www.thehitechgears.com
Management
NamePosition Held
Mr. Deep KapuriaExecutive Chairman
Mr. Anant Jaivant TalaulicarVice Chairman
Mr. Pranav KapuriaManaging Director
Mr. Amresh Kumar VermaExecutive Director
Mr. Girish NarangExecutive Director
Mr. Anuj KapuriaExecutive Director
Mr. Bidadi Anjani KumarNon Executive Director
Mr. Kawal JainNon Executive Director
Mr. Anil Kumar KhannaIndependent Director
Mr. Sandeep DinodiaIndependent Director
Mr. Vinit TanejaIndependent Director
Mr. Krishan Chandra VermaIndependent Director
Ms. Malini SudIndependent Director
Mr. Rajiv BatraIndependent Director
Mr. Ramesh Shankarmal PilaniIndependent Director
Mr. Deval Mahadev DesaiIndependent Director
Mr. Sameer GuptaIndependent Director
Mr. Arjun JunejaIndependent Director
Mr. Vikram Rupchand JaisinghaniIndependent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹877.71, which is 6.00% higher than the current market price of ₹828.00. The stock has a market capitalization of 1,555 Cr. and recorded a high/low of 1,280/398 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹471 Cr and total liabilities of ₹879 Cr.

What is the Market Cap of ?

The Market Cap of is 1,555 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 828.

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

In FY 2024-2025, the High / Low of stocks is 1,280/398.

What is the Stock P/E of ?

The Stock P/E of is 27.4.

What is the Book Value of ?

The Book Value of is 261.

What is the Dividend Yield of ?

The Dividend Yield of is 0.60 %.

What is the ROCE of ?

The ROCE of is 12.5 %.

What is the ROE of ?

The ROE of is 12.2 %.

What is the Face Value of ?

The Face Value of 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 . 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