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INVESTMENT INSIGHTS

Check Before You Invest : Hikal Ltd

BSE: 524735 NSE: HIKAL ISIN: INE475B01022
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Hikal Ltd belong to?
Hikal Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Hikal Ltd a good quality company?
Hikal Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Hikal Ltd undervalued or overvalued?
Hikal Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Hikal Ltd a good buy now?
Hikal Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Hikal Ltd?
Hikal Ltd revenue growth is 4.2% for FY-2025 , which is below its 5 year CAGR of 4.3% , indicating slower growth.
Q.2 Gross Profit margin of Hikal Ltd?
Hikal Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.9% for FY-2025 , which is in line with its 5 year median of 13.9% , indicating stable margins.
Q.3 Operating Profit Margin of Hikal Ltd?
Hikal Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.66% for FY-2025 , which is above its 5 year median of 17.53% indicating increasing margins.
Q.4 Net Profit Margin of Hikal Ltd?
Hikal Ltd Net Profit Margin is 4.88% for FY-2025 , is in line with with its 5 year median of 4.88%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 13.9 13.9
Operating Profit Margin 17.66 17.53
Net Profit Margin 4.88 4.88
Q.5 Return on Asset of Hikal Ltd?
Hikal Ltd Return on Asset is 3.26%, which is below its 5 year historical median of 3.33%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Hikal Ltd?
Hikal Ltd Return on equity is 7.41% for FY-2025 , which is in line with its historical median of 7.41%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Hikal Ltd?
Hikal Ltd Return on capital employed is 9.88% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Hikal Ltd?
Hikal Ltd Cash conversion cycle is 102 days, above its historical median of 93 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.67 0.86
ROE 7.41 7.41
ROCE 9.88 9.88
Cash Conversion Cycle 102 days 93 days
Q.9 Debt to Equity ratio of Hikal Ltd?
Hikal Ltd Debt-to-Equity ratio is 0.60 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Hikal Ltd?
Hikal Ltd Debt to cash flow from operations is 2.72 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hikal Ltd?
Promoters hold 68.85% of the Hikal Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hikal Ltd vs industry peers?
Hikal Ltd revenue CAGR is 4.29% , compared to the industry median CAGR of 5.54% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,859.8 137.1
Gross Profit 258.5 15.1
Operating Profit 328 16
Net Profit 91 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.67 0.8
ROE 7.41 8.91
ROCE 9.88 11.59
Cash Conversion Cycle (days) 101.88 76

Valuation & price assessment

Q.1 Stock return of Hikal Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.9% 1.3% -13.2% -55.5%
Q.3 Valuation ratios of Hikal Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 28.62 40.28
Price to Book 1.96 2.55 2.77
Price to Sales 1.35 1.51 2.65
EV to EBITDA 12.21 10.37 15.67

Check more companies

1. Ajanta Pharma
2. JB Chem & Pharma
3. Emcure Pharma
4. Gland Pharma
5. Wockhardt
6. Pfizer
7. Astrazeneca Pharma I
8. Sai Life Sciences
9. Natco Pharma
10. Eris Lifesciences
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