SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Hawa Engineers Ltd

BSE: 539176 NSE: ISIN: INE230I01018
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Hawa Engineers Ltd belong to?
Hawa Engineers Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Hawa Engineers Ltd a good quality company?
Hawa Engineers Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Hawa Engineers Ltd undervalued or overvalued?
Hawa Engineers Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 13.69 25.88
Price to Book 1.42 1.86
Price to Sales 0.26 0.32
EV to EBITDA 5.24 7.86
Q.4 Is Hawa Engineers Ltd a good buy now?
Hawa Engineers Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Hawa Engineers Ltd?
Hawa Engineers Ltd revenue growth is 1.2% for FY-2025, which is below its 5-year CAGR of 20.73%, indicating slower growth.

Q.2 Gross Profit margin of Hawa Engineers Ltd?
Hawa Engineers Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.7% for FY-2025, which is in line with its 5-year median of 2.7%, indicating stable margins.

Q.3 Operating Profit Margin of Hawa Engineers Ltd?
Hawa Engineers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.3% for FY-2025, which is in line with its 5-year median of 4.3% indicating stable margins.

Q.4 Net Profit Margin of Hawa Engineers Ltd?
Hawa Engineers Ltd Net Profit Margin is 1.32% for FY-2025, is below its 5-year median of 1.49%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 2.7 2.7
Operating Profit Margin (%) 4.3 4.3
Net Profit Margin (%) 1.32 1.49

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Hawa Engineers Ltd?
Hawa Engineers Ltd Return on Asset is 2.5%, which is in line with its 5-year historical median of 2.5%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Hawa Engineers Ltd?
Hawa Engineers Ltd Return on capital employed is 14.55% for FY-2025, which is above its 5-year historical median of 11.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Hawa Engineers Ltd?
Hawa Engineers Ltd Return on equity is 8.39% for FY-2025, which is above its 5-year historical median of 7.2%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Hawa Engineers Ltd?
Hawa Engineers Ltd Cash conversion cycle is 71 days, below its 5-year historical median of 82 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.9 1.9
ROE (%) 8.39 7.2
ROCE (%) 14.55 11.5
Cash Conversion Cycle 71 days 82 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Hawa Engineers Ltd?
Hawa Engineers Ltd Debt-to-Equity ratio is 0.82, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Hawa Engineers Ltd?
Hawa Engineers Ltd Debt to cash flow from operations is 2.49, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Hawa Engineers Ltd?

Q.1 Promoter shareholding and pledge status of Hawa Engineers Ltd?
Promoters hold 58.16% of the Hawa Engineers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Hawa Engineers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Hawa Engineers Ltd vs industry peers?
Hawa Engineers Ltd revenue CAGR is 20.73%, compared to the industry median CAGR of 3.04%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1.2 3
Gross Profit Growth (%) 5.8 23
Operating Profit Growth (%) -7.3 21.7
Net Profit Growth (%) -11.1 26.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.9 0.89
ROE (%) 8.39 11.8
ROCE (%) 14.55 14.41
Cash Conversion Cycle (days) 71.49 99

Valuation & price assessment

Q.1 Stock return of Hawa Engineers Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
11.6% 22.5% -1.5% -34.5%
Q.2 Valuation ratios of Hawa Engineers Ltd vs historical?
The current P/E ratio of 13.69 is lower than its historical median of 25.88, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 13.69 25.88 29.36
Price to Book 1.42 1.86 2.91
Price to Sales 0.26 0.32 2.93
EV to EBITDA 5.24 7.86 15.77

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×