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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of The Hi-Tech Gears Ltd

About the Company - The Hi-Tech Gears Ltd

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

The Hi-Tech Gears Ltd. Share Price Update

Share PriceValue
Today₹424.30
Previous Day₹453.15

Basic Stock Data of The Hi-Tech Gears Ltd

Market Cap 923 Cr.
Current Price 492
High / Low519/241
Stock P/E19.5
Book Value 232
Dividend Yield0.49 %
ROCE8.13 %
ROE6.55 %
Face Value 10.0

Data Source: screener.in

Competitors of The Hi-Tech Gears Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shanthi Gears Ltd 4,031 Cr. 525645/31753.0 42.60.95 %32.1 %23.8 % 1.00
Industry Average4 Cr5255342.60.95%32.1%23.8%1

The Hi-Tech Gears Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales198224250207252223289292314277287264284
Expenses172199208186232217254260275239253230248
Operating Profit2724412120635323938333335
OPM %14%11%17%10%8%3%12%11%12%14%12%13%12%
Other Income53021322321378
Interest77266788899914
Depreciation11121112121415202424151515
Profit before tax1492863-12146108101285
Tax %25%54%-3%42%204%-12%20%94%64%67%-62%24%15%
Net Profit104293-3-131104317972
EPS in Rs5.482.2015.311.84-1.46-6.965.990.201.881.378.874.9638.48

The Hi-Tech Gears Ltd Quarterly Chart

The Hi-Tech Gears Ltd Profit & Loss

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1954717499147227469711,1691,111
Expenses1784156548006386568891,028972
Operating Profit175695113849082141139
OPM %9%12%13%12%12%12%8%12%13%
Other Income77201711108885
Interest5424293323263340
Depreciation92639424343528269
Profit before tax933525919341134115
Tax %40%38%34%39%56%15%110%32%
Net Profit6203436829-123101
EPS in Rs10.7318.2418.964.4115.34-0.5912.3153.68
Dividend Payout %42%23%19%18%34%13%-256%20%

The Hi-Tech Gears Ltd 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%

The Hi-Tech Gears Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:9%
3 Years:17%
TTM:-6%
Compounded Profit Growth
10 Years:%
5 Years:-8%
3 Years:40%
TTM:167%
Stock Price CAGR
10 Years:20%
5 Years:11%
3 Years:39%
1 Year:96%
Return on Equity
10 Years:%
5 Years:6%
3 Years:5%
Last Year:7%

The Hi-Tech Gears Ltd Balance Sheet

MonthMar 2006Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital91919191919191919
Reserves30183222253257302312336416
Borrowings90319366440352427471457344
Other Liabilities52160128155161174201171160
Total Liabilities1816807348677899221,002983939
Fixed Assets105403423444446468528496467
CWIP71113193471381314
Investments-0004810121212
Other Assets70267298400301373424462446
Total Assets1816807348677899221,002983939

The Hi-Tech Gears Ltd 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

The Hi-Tech Gears Ltd 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%

The Hi-Tech Gears Ltd Financial Efficiency Indicators Chart

The Hi-Tech Gears Ltd 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

The Hi-Tech Gears Ltd Shareholding Pattern Chart

No. of The Hi-Tech Gears Ltd Shareholders

This stock is not held by any mutual fund

The Hi-Tech Gears Ltd ROCE Trend

The Hi-Tech Gears Ltd EPS Trend

The Hi-Tech Gears Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)12.32-0.5915.344.4118.96
Diluted EPS (Rs.)12.30-0.5915.344.4118.96
Cash EPS (Rs.)56.0927.2738.2927.3441.44
Book Value[Excl.RevalReserv]/Share (Rs.)188.85176.23170.90147.18144.79
Book Value[Incl.RevalReserv]/Share (Rs.)188.85176.23170.90147.18144.79
Revenue From Operations / Share (Rs.)622.99517.17397.24384.71486.85
PBDIT / Share (Rs.)79.5347.7653.4850.7069.37
PBIT / Share (Rs.)35.7619.9030.5327.7746.89
PBT / Share (Rs.)18.095.8118.1210.1131.18
Net Profit / Share (Rs.)12.32-0.5815.344.4118.96
NP After MI And SOA / Share (Rs.)12.32-0.5815.344.4118.96
PBDIT Margin (%)12.769.2313.4613.1714.24
PBIT Margin (%)5.733.847.687.219.63
PBT Margin (%)2.901.124.562.626.40
Net Profit Margin (%)1.97-0.113.861.143.89
NP After MI And SOA Margin (%)1.97-0.113.861.143.89
Return on Networth / Equity (%)6.52-0.338.972.9913.09
Return on Capital Employeed (%)11.145.658.668.7614.72
Return On Assets (%)2.34-0.103.121.044.10
Long Term Debt / Equity (X)0.610.901.031.091.14
Total Debt / Equity (X)1.221.341.161.091.48
Asset Turnover Ratio (%)1.180.780.730.700.94
Current Ratio (X)1.161.201.351.431.35
Quick Ratio (X)0.840.851.000.990.95
Inventory Turnover Ratio (X)4.803.883.542.884.59
Dividend Payout Ratio (NP) (%)0.000.000.0095.6822.25
Dividend Payout Ratio (CP) (%)0.000.000.0015.4310.18
Earning Retention Ratio (%)0.000.000.004.3277.75
Cash Earning Retention Ratio (%)0.000.000.0084.5789.82
Interest Coverage Ratio (X)4.503.394.312.874.42
Interest Coverage Ratio (Post Tax) (X)1.700.952.241.252.21
Enterprise Value (Cr.)827.56761.72620.24364.19895.29
EV / Net Operating Revenue (X)0.700.780.830.500.97
EV / EBITDA (X)5.548.506.183.836.88
MarketCap / Net Operating Revenue (X)0.400.410.430.180.60
Retention Ratios (%)0.000.000.004.3177.74
Price / BV (X)1.341.221.010.482.03
Price / Net Operating Revenue (X)0.400.410.430.180.60
EarningsYield0.040.000.080.060.06

The Hi-Tech Gears Ltd Profitability Ratios (%)

The Hi-Tech Gears Ltd Liquidity Ratios

The Hi-Tech Gears Ltd Liquidity Ratios (%)

The Hi-Tech Gears Ltd Interest Coverage Ratios (X)

The Hi-Tech Gears Ltd Valuation Ratios

Fair Value / Intrinsic Value of The Hi-Tech Gears Ltd

Fair Value: ₹297.77

The stock is overvalued by 39.48% compared to the current price ₹492

*Investments are subject to market risks

Strength and Weakness of The Hi-Tech Gears Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (530.00 cr) and profit (40.67 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 32.17 and average Dividend Yield of 6.82%.
  2. The stock has a low average ROCE of 6.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 43.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 53.00, which may not be favorable.
  5. The company has higher borrowings (362.89) compared to reserves (256.78), which may suggest financial risk.

Should I Buy The Hi-Tech Gears Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in The Hi-Tech Gears Ltd:
    1. Net Profit Margin: 1.97%
      • 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: 11.14% (Industry Average ROCE: 32.1%)
      • 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. Interest Coverage Ratio (Post Tax): 1.70
      • 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.
    4. Quick Ratio: 0.84
      • 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.
    5. ✓ Stock P/E: 17.5 (Industry average Stock P/E: 53)
      • 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.
    6. ✗ Total Debt / Equity: 1.22
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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