Hawa Engineers Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 17, 2024, 8:14 pm

Market Cap	81.5 Cr.
Current Price	231
High / Low	338/117
Stock P/E	29.0
Book Value	55.9
Dividend Yield	0.00 %
ROCE	14.7 %
ROE	10.4 %
Face Value	10.0
PEG Ratio	1.02

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Hawa Engineers Ltd

Competitors of Hawa Engineers Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Hawa Engineers Ltd	81.5 Cr.	231	338/117	29.0	55.9	0.00 %	14.7 %	10.4 %	10.0
Shakti Pumps (India) Ltd	11,763 Cr.	965	984/155	35.8	78.4	0.07 %	31.4 %	24.2 %	10.0
Latteys Industries Ltd	208 Cr.	36.1	48.6/13.0	134	3.40	0.00 %	11.8 %	9.00 %	2.00
Bright Solar Ltd	10.8 Cr.	4.30	12.5/3.90		11.8	0.00 %	10.9 %	11.5 %	10.0
Kirloskar Brothers Ltd	17,967 Cr.	2,262	2,685/837	45.6	233	0.27 %	27.3 %	21.7 %	2.00
Industry Average	10,946.00 Cr	716.40		60.96	76.68	0.13%	19.90%	15.65%	6.00

All Competitor Stocks of Hawa Engineers Ltd

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	15.18	18.76	16.64	22.65	23.76	23.39	24.83	29.98	25.95	27.77	34.89	31.03	27.73
Expenses	14.18	18.19	16.08	21.72	23.00	22.36	23.89	28.73	25.08	26.69	32.88	29.39	26.30
Operating Profit	1.00	0.57	0.56	0.93	0.76	1.03	0.94	1.25	0.87	1.08	2.01	1.64	1.43
OPM %	6.59%	3.04%	3.37%	4.11%	3.20%	4.40%	3.79%	4.17%	3.35%	3.89%	5.76%	5.29%	5.16%
Other Income	0.15	0.18	0.01	0.18	0.06	0.07	0.15	0.17	0.10	0.04	0.10	0.20	0.03
Interest	0.31	0.30	0.28	0.50	0.40	0.62	0.70	0.60	0.55	0.67	0.78	0.97	0.71
Depreciation	0.21	0.21	0.21	0.21	0.21	0.22	0.21	0.21	0.22	0.20	0.19	0.20	0.22
Profit before tax	0.63	0.24	0.08	0.40	0.21	0.26	0.18	0.61	0.20	0.25	1.14	0.67	0.53
Tax %	0.00%	91.67%	0.00%	12.50%	0.00%	0.00%	0.00%	90.16%	0.00%	0.00%	0.00%	70.15%	24.53%
Net Profit	0.63	0.02	0.08	0.37	0.21	0.27	0.18	0.06	0.21	0.25	1.14	0.20	0.40
EPS in Rs	1.79	0.06	0.23	1.05	0.60	0.77	0.51	0.17	0.60	0.71	3.23	0.57	1.13

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 2:22 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	58	48	46	43	50	55	48	45	48	73	102	120	129
Expenses	55	46	43	40	47	52	45	42	45	70	98	114	122
Operating Profit	3	2	2	2	3	3	3	3	3	3	4	6	7
OPM %	6%	5%	5%	6%	6%	6%	7%	6%	6%	4%	4%	5%	5%
Other Income	0	0	0	0	0	0	1	0	0	1	0	0	1
Interest	1	1	1	1	1	1	2	1	1	1	2	3	3
Depreciation	1	0	1	1	1	1	1	1	1	1	1	1	1
Profit before tax	2	1	1	1	1	1	1	1	1	1	1	2	3
Tax %	34%	19%	32%	34%	43%	34%	30%	2%	22%	19%	52%	21%
Net Profit	1	1	1	1	1	1	1	1	1	1	1	2	3
EPS in Rs	3.60	2.58	1.93	1.93	2.01	2.78	2.10	2.41	2.27	3.09	1.99	5.10	7.97
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	100.00%
Change in YoY Net Profit Growth (%)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	100.00%

Hawa Engineers Ltd has shown a consistent positive trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	9%
5 Years:	20%
3 Years:	35%
TTM:	19%

Compounded Profit Growth
10 Years:	7%
5 Years:	21%
3 Years:	32%
TTM:	301%

Stock Price CAGR
10 Years:	%
5 Years:	60%
3 Years:	64%
1 Year:	75%

Return on Equity
10 Years:	7%
5 Years:	7%
3 Years:	7%
Last Year:	10%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 1:28 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	4	4	4	4	4	4	4	4	4	4	4	4	4
Reserves	5	6	7	7	8	9	10	10	11	12	13	15	16
Borrowings	4	7	7	8	12	8	8	8	9	16	17	19	18
Other Liabilities	17	12	11	12	15	18	15	15	16	14	19	29	10
Total Liabilities	30	29	27	31	38	38	36	36	40	46	53	67	47
Fixed Assets	6	6	7	7	8	9	8	7	7	6	6	6	5
CWIP	0	0	0	0	0	0	0	0	0	0	0	0	0
Investments	0	0	0	0	0	1	1	0	0	0	0	0	0
Other Assets	24	23	21	24	30	28	27	28	33	40	47	61	41
Total Assets	30	29	27	31	38	38	36	36	40	46	53	67	47

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	1	2	-0	1	2	7	3	1	-3	-6	2	0
Cash from Investing Activity +	-1	0	-1	-1	-2	-2	0	0	0	0	-0	-0
Cash from Financing Activity +	1	2	-1	0	3	-5	-2	-2	0	6	-1	4
Net Cash Flow	1	4	-3	-0	3	0	1	-1	-2	1	1	4

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-1.00	-5.00	-5.00	-6.00	-9.00	-5.00	-5.00	-5.00	-6.00	-13.00	-13.00	-13.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	96	69	68	82	70	64	54	49	50	78	64	63
Inventory Days	34	43	47	83	81	86	101	125	189	116	114	79
Days Payable	64	53	52	92	99	100	97	107	118	63	46	69
Cash Conversion Cycle	65	59	63	73	52	49	59	68	121	131	132	73
Working Capital Days	76	78	89	101	94	67	79	95	132	121	107	99
ROCE %	24%	14%	12%	12%	12%	13%	14%	10%	10%	10%	12%	15%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	55.97%	55.97%	55.97%	56.04%	62.30%	62.42%	63.18%	63.12%	63.18%	63.08%	63.04%	63.40%
Public	44.03%	44.03%	44.03%	43.96%	37.70%	37.58%	36.81%	36.89%	36.82%	36.93%	36.97%	36.59%
No. of Shareholders	2,291	2,275	2,286	2,271	2,273	2,299	2,294	2,391	2,306	2,380	2,444	2,510

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	5.10	1.98	3.10	2.26	2.40
Diluted EPS (Rs.)	5.10	1.98	3.10	2.26	2.40
Cash EPS (Rs.)	7.41	4.39	5.46	4.62	4.82
Book Value[Excl.RevalReserv]/Share (Rs.)	51.68	46.58	44.60	41.50	39.53
Book Value[Incl.RevalReserv]/Share (Rs.)	51.68	46.58	44.60	41.50	39.53
Revenue From Operations / Share (Rs.)	339.27	289.13	207.68	136.42	133.83
PBDIT / Share (Rs.)	17.14	13.10	10.14	9.11	8.54
PBIT / Share (Rs.)	14.83	10.69	7.78	6.75	6.13
PBT / Share (Rs.)	6.42	4.12	3.83	2.88	2.45
Net Profit / Share (Rs.)	5.10	1.98	3.10	2.26	2.40
PBDIT Margin (%)	5.05	4.53	4.88	6.67	6.38
PBIT Margin (%)	4.37	3.69	3.74	4.94	4.57
PBT Margin (%)	1.89	1.42	1.84	2.10	1.83
Net Profit Margin (%)	1.50	0.68	1.49	1.65	1.79
Return on Networth / Equity (%)	9.87	4.25	6.95	5.45	6.07
Return on Capital Employeed (%)	17.44	14.68	12.86	10.70	10.78
Return On Assets (%)	2.70	1.32	2.40	2.00	2.34
Long Term Debt / Equity (X)	0.09	0.09	0.13	0.15	0.05
Total Debt / Equity (X)	1.05	1.06	1.02	0.61	0.54
Asset Turnover Ratio (%)	2.01	2.08	1.72	1.27	1.30
Current Ratio (X)	1.67	1.75	1.63	1.86	1.75
Quick Ratio (X)	1.12	0.82	0.94	0.94	1.13
Inventory Turnover Ratio (X)	4.01	4.03	3.31	2.61	3.10
Interest Coverage Ratio (X)	2.04	1.99	2.57	2.35	2.32
Interest Coverage Ratio (Post Tax) (X)	1.61	1.30	1.79	1.58	1.65
Enterprise Value (Cr.)	66.92	36.21	27.22	15.05	6.84
EV / Net Operating Revenue (X)	0.55	0.35	0.37	0.31	0.14
EV / EBITDA (X)	11.07	7.84	7.61	4.69	2.27
MarketCap / Net Operating Revenue (X)	0.47	0.24	0.22	0.21	0.13
Price / BV (X)	3.14	1.51	1.03	0.72	0.45
Price / Net Operating Revenue (X)	0.47	0.24	0.22	0.21	0.13
EarningsYield	0.03	0.02	0.06	0.07	0.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hawa Engineers Ltd as of December 18, 2024 is: 171.97

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 18, 2024, Hawa Engineers Ltd is Overvalued by 25.55% compared to the current share price 231.00

Intrinsic Value of Hawa Engineers Ltd as of December 18, 2024 is: 221.07

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 18, 2024, Hawa Engineers Ltd is Overvalued by 4.30% compared to the current share price 231.00

Last 5 Year EPS CAGR: 28.55%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has shown consistent growth in sales (66.54 cr) and profit (1.31 cr) over the years.	The stock has a low average ROCE of 13.17%, which may not be favorable. The stock has a high average Working Capital Days of 94.83, which may not be favorable. The stock has a high average Cash Conversion Cycle of 78.75, which may not be favorable. The company has higher borrowings (10.85) compared to reserves (9.92), 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 Hawa Engineers Ltd:
1. Net Profit Margin: 1.5%
  - 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: 17.44% (Industry Average ROCE: 19.9%)
  - 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%: 9.87% (Industry Average ROE: 15.65%)
  - 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): 1.61
  - 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: 1.12
  - 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: 29 (Industry average Stock P/E: 60.96)
  - 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: 1.05
  - 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

Hawa Engineers Ltd. is a Public Limited Listed company incorporated on 26/03/1993 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L29120GJ1993PLC019199 and registration number is 019199. Currently company belongs to the Industry of Pumps. Company’s Total Operating Revenue is Rs. 73.24 Cr. and Equity Capital is Rs. 3.53 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pumps	Plot No. 129, Near Kashiram Textile Mill, Ahmedabad Gujarat 382405	cs@hawaengltd.com http://www.hawaengltd.com

Management
Name	Position Held
Mr. Aslam Kagdi	Chairman & M.D & CFO
Mr. Asad Kagdi	Joint Managing Director
Mr. Mohammedkhan Pathan	Whole Time Director
Mr. Anwarahmed Mohammed Javid Daruwala	Independent Director
Mrs. Sabana Amjad Rehmani	Independent Woman Director
Mr. Abdul Motibhai Desai	Independent Director
Mr. Johebhasan Aabidbhai Kureshi	Independent Director

FAQ

What is the latest intrinsic value of Hawa Engineers Ltd?

The latest intrinsic value of Hawa Engineers Ltd as on 17 December 2024 is ₹171.97, which is 25.55% lower than the current market price of ₹231.00. The stock has a market capitalization of 81.5 Cr. and recorded a high/low of ₹338/117 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹16 Cr and total liabilities of ₹47 Cr.

What is the Market Cap of Hawa Engineers Ltd?

The Market Cap of Hawa Engineers Ltd is 81.5 Cr..

What is the current Stock Price of Hawa Engineers Ltd as on 17 December 2024?

The current stock price of Hawa Engineers Ltd as on 17 December 2024 is 231.

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

In FY 2024-2025, the High / Low of Hawa Engineers Ltd stocks is 338/117.

What is the Stock P/E of Hawa Engineers Ltd?

The Stock P/E of Hawa Engineers Ltd is 29.0.

What is the Book Value of Hawa Engineers Ltd?

The Book Value of Hawa Engineers Ltd is 55.9.

What is the Dividend Yield of Hawa Engineers Ltd?

The Dividend Yield of Hawa Engineers Ltd is 0.00 %.

What is the ROCE of Hawa Engineers Ltd?

The ROCE of Hawa Engineers Ltd is 14.7 %.

What is the ROE of Hawa Engineers Ltd?

The ROE of Hawa Engineers Ltd is 10.4 %.

What is the Face Value of Hawa Engineers Ltd?

The Face Value of Hawa Engineers Ltd is 10.0.