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Last Updated on: 04 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 531743 | NSE: HIRAUTO

Hira Automobile Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 4:32 pm

Market Cap 19.6 Cr.
Current Price 71.2
High / Low71.2/26.1
Stock P/E28.4
Book Value 51.4
Dividend Yield0.00 %
ROCE9.65 %
ROE5.10 %
Face Value 10.0
PEG Ratio1.47

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

View Share Price Target for Hira Automobile Ltd

Competitors of Hira Automobile Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mystic Electronics Ltd 12.4 Cr. 6.259.90/3.3015.6 14.30.00 %1.09 %1.06 % 10.0
Ind-Agiv Commerce Ltd 6.50 Cr. 65.069.4/35.1 57.70.00 %17.9 %% 10.0
IFL Enterprises Ltd 71.3 Cr. 0.952.56/0.92 0.990.00 %5.06 %3.36 % 1.00
Hira Automobile Ltd 19.6 Cr. 71.271.2/26.128.4 51.40.00 %9.65 %5.10 % 10.0
Hindustan Appliances Ltd 357 Cr. 356402/12.22,099 14.50.00 %0.26 %0.90 % 10.0
Industry Average13,726.04 Cr164.87159.9486.960.10%12.82%9.59%8.26

All Competitor Stocks of Hira Automobile Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales38.5949.2860.4076.0556.7059.0961.9571.2159.6862.7967.6372.1156.56
Expenses37.1447.3657.6772.5354.2156.4259.0069.2457.0560.2164.8070.0254.35
Operating Profit1.451.922.733.522.492.672.951.972.632.582.832.092.21
OPM %3.76%3.90%4.52%4.63%4.39%4.52%4.76%2.77%4.41%4.11%4.18%2.90%3.91%
Other Income0.030.030.030.320.020.020.020.370.020.020.020.150.02
Interest1.731.701.612.882.032.142.251.712.061.932.071.731.75
Depreciation0.340.360.350.340.340.340.340.340.340.340.370.300.33
Profit before tax-0.59-0.110.800.620.140.210.380.290.250.330.410.210.15
Tax %0.00%0.00%3.75%16.13%21.43%19.05%26.32%37.93%24.00%21.21%31.71%128.57%26.67%
Net Profit-0.60-0.110.770.520.110.170.280.180.190.270.28-0.060.11
EPS in Rs-2.18-0.402.801.890.400.621.020.650.690.981.02-0.220.40

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 22, 2024, 2:21 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales264305323310322354369277204224249262254
Expenses260300316302314345358269196215239252244
Operating Profit4578810118910101010
OPM %2%2%2%3%3%3%3%3%4%4%4%4%4%
Other Income1110001100000
Interest3346678778888
Depreciation1121222211111
Profit before tax1221112-101111
Tax %31%35%34%44%37%67%19%-59%17%14%26%44%
Net Profit1111101-001111
EPS in Rs3.163.563.922.032.911.455.27-1.381.052.252.722.472.54
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182019-20202022-20232023-2024
YoY Net Profit Growth (%)0.00%0.00%0.00%0.00%-100.00%-100.00%0.00%0.00%
Change in YoY Net Profit Growth (%)0.00%0.00%0.00%0.00%-100.00%0.00%100.00%0.00%

Hira Automobile Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-2%
5 Years:-7%
3 Years:9%
TTM:-1%
Compounded Profit Growth
10 Years:-4%
5 Years:-8%
3 Years:40%
TTM:-25%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:186%
Return on Equity
10 Years:5%
5 Years:2%
3 Years:5%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital333333333333
Reserves45667899991011
Borrowings484570606484917977777882
Other Liabilities27331814127777555
Total Liabilities818596838610211097969496101
Fixed Assets141717171616181514131313
CWIP000000000000
Investments000000000000
Other Assets676880667086928283828388
Total Assets818596838610211097969496101

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-2511-182-5314127115
Cash from Investing Activity +-4-2-2-2-02-42-0-0-2-1
Cash from Financing Activity +29-1010-14-2-4-0-19-12-6-9-2
Net Cash Flow-0-07-80-7-2-40-002

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-44.00-40.00-63.00-52.00-56.00-74.00-80.00-71.00-68.00-67.00-68.00-72.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days131816171920223240383437
Inventory Days665350535052536385767471
Days Payable2128211113121
Cash Conversion Cycle7859586868707493122113106107
Working Capital Days7355616468768099127120108109
ROCE %9%9%9%9%10%10%9%6%8%10%10%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters95.72%95.72%95.72%95.73%95.73%95.73%95.73%95.73%95.73%95.73%95.73%95.73%
Public4.28%4.28%4.28%4.28%4.28%4.28%4.28%4.28%4.28%4.27%4.28%4.27%
No. of Shareholders203203203203205205205204204206209210

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)2.462.732.241.05-1.40
Diluted EPS (Rs.)2.462.732.241.05-1.40
Cash EPS (Rs.)7.337.697.286.244.90
Book Value[Excl.RevalReserv]/Share (Rs.)49.6947.1544.4342.1941.72
Book Value[Incl.RevalReserv]/Share (Rs.)49.6947.1544.4342.1941.72
Revenue From Operations / Share (Rs.)952.36904.19814.68741.781006.08
PBDIT / Share (Rs.)37.6638.1936.4031.8530.14
PBIT / Share (Rs.)32.7933.2331.3526.6623.84
PBT / Share (Rs.)4.493.712.581.29-3.43
Net Profit / Share (Rs.)2.462.732.231.04-1.40
PBDIT Margin (%)3.954.224.464.292.99
PBIT Margin (%)3.443.673.843.592.36
PBT Margin (%)0.470.410.310.17-0.34
Net Profit Margin (%)0.250.300.270.14-0.13
Return on Networth / Equity (%)4.955.785.032.47-3.35
Return on Capital Employeed (%)20.2321.3419.7917.3920.08
Return On Assets (%)0.660.780.650.29-0.39
Long Term Debt / Equity (X)2.032.092.342.391.57
Total Debt / Equity (X)5.745.626.046.246.74
Asset Turnover Ratio (%)2.662.612.352.112.67
Current Ratio (X)1.551.551.601.521.27
Quick Ratio (X)0.750.700.780.730.61
Inventory Turnover Ratio (X)0.030.040.030.030.04
Interest Coverage Ratio (X)1.331.291.261.261.12
Interest Coverage Ratio (Post Tax) (X)1.091.091.081.040.96
Enterprise Value (Cr.)85.8375.7375.470.000.00
EV / Net Operating Revenue (X)0.320.300.330.000.00
EV / EBITDA (X)8.287.207.530.000.00
MarketCap / Net Operating Revenue (X)0.040.010.010.000.00
Price / BV (X)0.810.350.280.000.00
Price / Net Operating Revenue (X)0.040.010.010.000.00
EarningsYield0.060.160.170.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hira Automobile Ltd as of December 4, 2024 is: 75.94

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 4, 2024, Hira Automobile Ltd is Undervalued by 6.66% compared to the current share price 71.20

Intrinsic Value of Hira Automobile Ltd as of December 4, 2024 is: 90.61

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 4, 2024, Hira Automobile Ltd is Undervalued by 27.26% compared to the current share price 71.20

Last 5 Year EPS CAGR: 19.32%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (285.92 cr) and profit (1.00 cr) over the years.
  1. The stock has a low average ROCE of 9.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 86.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 84.67, which may not be favorable.
  4. The company has higher borrowings (71.25) compared to reserves (7.75), 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 Hira Automobile Ltd:
    1. Net Profit Margin: 0.25%
      • 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: 20.23% (Industry Average ROCE: 12.82%)
      • 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%: 4.95% (Industry Average ROE: 9.59%)
      • 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): 1.09
      • 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: 0.75
      • 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: 28.4 (Industry average Stock P/E: 159.94)
      • 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: 5.74
      • 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

Hira Automobiles Ltd. is a Public Limited Listed company incorporated on 06/07/1989 and has its registered office in the State of Chandigarh, India. Company’s Corporate Identification Number(CIN) is L50101CH1989PLC009500 and registration number is 009500. Currently company belongs to the Industry of Trading. Company’s Total Operating Revenue is Rs. 224.32 Cr. and Equity Capital is Rs. 2.75 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Trading & Distributors# 0598, Sector - 18B, Chandigarh Chandigarh 160018hiraaccounts@gmail.com
http://www.hiraautomobiles.com
Management
NamePosition Held
Mr. Rahul Inder Singh SidhuChairman & Managing Director
Mrs. Neha SidhuDirector
Mrs. Rupinder KaurIndependent Director
Mrs. Gurpreet KaurIndependent Director
Mr. Daljeet SinghIndependent Director

FAQ

What is the latest intrinsic value of Hira Automobile Ltd?

The latest intrinsic value of Hira Automobile Ltd as on 19 November 2024 is ₹75.94, which is 6.66% higher than the current market price of ₹71.20.

What is the Market Cap of Hira Automobile Ltd?

The Market Cap of Hira Automobile Ltd is 19.6 Cr..

What is the current Stock Price of Hira Automobile Ltd as on 19 November 2024?

The current stock price of Hira Automobile Ltd as on 19 November 2024 is ₹71.2.

What is the High / Low of Hira Automobile Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hira Automobile Ltd stocks is 71.2/26.1.

What is the Stock P/E of Hira Automobile Ltd?

The Stock P/E of Hira Automobile Ltd is 28.4.

What is the Book Value of Hira Automobile Ltd?

The Book Value of Hira Automobile Ltd is 51.4.

What is the Dividend Yield of Hira Automobile Ltd?

The Dividend Yield of Hira Automobile Ltd is 0.00 %.

What is the ROCE of Hira Automobile Ltd?

The ROCE of Hira Automobile Ltd is 9.65 %.

What is the ROE of Hira Automobile Ltd?

The ROE of Hira Automobile Ltd is 5.10 %.

What is the Face Value of Hira Automobile Ltd?

The Face Value of Hira Automobile 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 Hira Automobile 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