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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of The Hi-Tech Gears Ltd

Basic Stock Data

Last Updated: June 12, 2024, 10:19 pm

Market Cap 1,934 Cr.
Current Price 1,030
High / Low1,280/328
Stock P/E51.9
Book Value 248
Dividend Yield0.23 %
ROCE12.5 %
ROE9.08 %
Face Value 10.0
PEG Ratio0.76

Competitors of The Hi-Tech Gears Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shanthi Gears Ltd 4,192 Cr. 546645/40051.0 45.00.93 %33.9 %25.4 % 1.00
JTEKT India Ltd 4,482 Cr. 176188/12657.1 30.00.29 %15.9 %12.4 % 1.00
Industry Average4,337.00 Cr361.0054.0537.500.61%24.90%18.90%1.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales250207252223289292314277287264284273287
Expenses208186232217254260275239253230248232246
Operating Profit4121206353239383333354141
OPM %17%10%8%3%12%11%12%14%12%13%12%15%14%
Other Income02132232137823
Interest26678889991487
Depreciation11121214152024241515151516
Profit before tax2863-121461081012852021
Tax %-3%42%204%-12%20%94%64%67%-62%24%15%25%16%
Net Profit293-3-1311043179721518
EPS in Rs15.311.84-1.46-6.965.990.201.881.378.874.9638.487.949.50

Last Updated: June 9, 2024, 6:53 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:12 am

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1954717499147227469711,1691,107
Expenses1784156548006386568891,028964
Operating Profit175695113849082141142
OPM %9%12%13%12%12%12%8%12%13%
Other Income77201711108885
Interest5424293323263340
Depreciation92639424343528260
Profit before tax933525919341134127
Tax %40%38%34%39%56%15%110%32%
Net Profit6203436829-123113
EPS in Rs10.7318.2418.964.4115.34-0.5912.3160.25
Dividend Payout %42%23%19%18%34%13%-256%20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)70.00%5.88%-77.78%262.50%-103.45%2400.00%
Change in YoY Net Profit Growth (%)0.00%-64.12%-83.66%340.28%-365.95%2503.45%

Growth

Compounded Sales Growth
10 Years:%
5 Years:4%
3 Years:14%
TTM:-5%
Compounded Profit Growth
10 Years:%
5 Years:4%
3 Years:9%
TTM:66%
Stock Price CAGR
10 Years:23%
5 Years:31%
3 Years:65%
1 Year:168%
Return on Equity
10 Years:%
5 Years:6%
3 Years:5%
Last Year:9%

Last Updated: June 8, 2024, 6:55 pm

Balance Sheet

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital91919191919191919
Reserves30183222253257302312336416
Borrowings90319366440352427471457344
Other Liabilities52160128155161174201171160
Total Liabilities1816807348677899221,002983939
Fixed Assets105403423444446468528496467
CWIP71113193471381314
Investments0004810121212
Other Assets70267298400301373424462446
Total Assets1816807348677899221,002983939

Reserves and Borrowings Chart

The Hi-Tech Gears Ltd Cash Flow

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 15541547184375654
Cash from Investing Activity -48-119-72-85-40-51-56-41
Cash from Financing Activity 33261860-1512511-41
Net Cash Flow1-40-3922-71210-27

Free Cash Flow

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

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 2023
Debtor Days3482756846736565
Inventory Days12485668792918875
Days Payable15886757910211210973
Cash Conversion Cycle081667637524567
Working Capital Days392853518544962
ROCE %13%12%8%8%5%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters56.00%56.00%56.00%56.22%56.22%56.22%56.22%56.22%56.22%56.26%56.26%56.26%
FIIs0.00%0.00%0.00%0.02%0.00%0.00%0.00%0.00%0.00%0.00%0.02%0.00%
DIIs0.01%0.01%0.01%0.00%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.02%0.02%0.02%0.02%
Public43.99%43.99%43.99%43.76%43.78%43.78%43.76%43.77%43.77%43.72%43.69%43.72%
No. of Shareholders5,2437,1267,7857,5837,4637,5547,7366,6436,3097,1767,4147,284

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)0.300.610.901.031.09
Total Debt / Equity (X)0.641.221.341.161.09
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) (%)0.000.000.000.0095.68
Dividend Payout Ratio (CP) (%)0.000.000.000.0015.43
Earning Retention Ratio (%)0.000.000.000.004.32
Cash Earning Retention Ratio (%)0.000.000.000.0084.57
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.)1687.70827.56761.72620.24364.19
EV / Net Operating Revenue (X)1.520.700.780.830.50
EV / EBITDA (X)10.565.548.506.183.83
MarketCap / Net Operating Revenue (X)1.300.400.410.430.18
Retention Ratios (%)0.000.000.000.004.31
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: 1,171.39

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: 13.73% compared to the current price 1030

Intrinsic Value: 1,976.09

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: 91.85% compared to the current price ₹1030

Last 5 Year EPS CAGR: 68.70%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (530.00 cr) and profit (42.00 cr) over the years.
  1. The stock has a low average ROCE of 6.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 43.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 53.00, which may not be favorable.
  4. The company has higher borrowings (362.89) compared to reserves (256.78), which may suggest financial risk.

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 The Hi-Tech Gears Ltd:
    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: 24.9%)
      • 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%: 24.50% (Industry Average ROE: 18.9%)
      • 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: 51.9 (Industry average Stock P/E: 54.05)
      • 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: 0.64
      • 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

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, Sector -7, 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. Anuj KapuriaExecutive 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. Bidadi Anjani KumarDirector
Mr. Subir Kumar ChowdhuryExecutive Director & President

FAQ

What is the latest fair value of The Hi-Tech Gears Ltd?

The latest fair value of The Hi-Tech Gears Ltd is ₹1171.39.

What is the Market Cap of The Hi-Tech Gears Ltd?

The Market Cap of The Hi-Tech Gears Ltd is 1,934 Cr..

What is the current Stock Price of The Hi-Tech Gears Ltd as on 13 June 2024?

The current stock price of The Hi-Tech Gears Ltd as on 13 June 2024 is ₹1,030.

What is the High / Low of The Hi-Tech Gears Ltd stocks in FY 2024?

In FY 2024, the High / Low of The Hi-Tech Gears Ltd stocks is 1,280/328.

What is the Stock P/E of The Hi-Tech Gears Ltd?

The Stock P/E of The Hi-Tech Gears Ltd is 51.9.

What is the Book Value of The Hi-Tech Gears Ltd?

The Book Value of The Hi-Tech Gears Ltd is 248.

What is the Dividend Yield of The Hi-Tech Gears Ltd?

The Dividend Yield of The Hi-Tech Gears Ltd is 0.23 %.

What is the ROCE of The Hi-Tech Gears Ltd?

The ROCE of The Hi-Tech Gears Ltd is 12.5 %.

What is the ROE of The Hi-Tech Gears Ltd?

The ROE of The Hi-Tech Gears Ltd is 9.08 %.

What is the Face Value of The Hi-Tech Gears Ltd?

The Face Value of The Hi-Tech Gears 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 The Hi-Tech Gears 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