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Check Before You Invest : Hindustan Hardy Ltd

BSE: 505893 NSE: ISIN: INE724D01011
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Hindustan Hardy Ltd belong to?
Hindustan Hardy Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Hindustan Hardy Ltd a good quality company?
Hindustan Hardy Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Hindustan Hardy Ltd undervalued or overvalued?
Hindustan Hardy Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Hindustan Hardy Ltd a good buy now?
Hindustan Hardy 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

Q.1 Revenue growth of Hindustan Hardy Ltd?
Hindustan Hardy Ltd revenue growth is 20.1% for FY-2025 , which is above its 5 year CAGR of 15.8% , indicating faster growth.
Q.2 Gross Profit margin of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.4% for FY-2025 , which is above its 5 year median of 11.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12% for FY-2025 , which is above its 5 year median of 11.15% indicating increasing margins.
Q.4 Net Profit Margin of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Net Profit Margin is 8.09% for FY-2025 , is above with its 5 year median of 7.14%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 12.4 11.2
Operating Profit Margin 12 11.15
Net Profit Margin 8.09 7.14
Q.5 Return on Asset of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Return on Asset is 13.32(x), which is above its 5 year historical median of 11.97(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Return on equity is 24.96% for FY-2025 , which is in line with its historical median of 24.96%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Return on capital employed is 28.27% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Cash conversion cycle is 72 , below its historical median of 72 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.65 1.73
ROE 24.96 24.96
ROCE 28.27 28.27
Cash Conversion Cycle 72 72
Q.9 Debt to Equity ratio of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Debt-to-Equity ratio is 0.26 , which is lower with the industry average of 0.4 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Hindustan Hardy Ltd?
Hindustan Hardy Ltd Debt to cash flow from operations is 4.67 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindustan Hardy Ltd?
Promoters hold 66.16% of the Hindustan Hardy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindustan Hardy Ltd vs industry peers?
Hindustan Hardy Ltd revenue CAGR is 15.81% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 81.5 492.3
Gross Profit 10 44.4
Operating Profit 10 47
Net Profit 7 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.65 1.23
ROE 24.96 11.57
ROCE 28.27 13.36
Cash Conversion Cycle 72.46 47

Valuation & price assessment

Q.1 Stock return of Hindustan Hardy Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 25% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 25% 41.3% 43.8% 8%
Q.3 Valuation ratios of Hindustan Hardy Ltd vs historical?
The current P/E is higher 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 13.27 7.99 39.31
Price to Book 3.4 3.11 2.88
Price to Sales 1.16 0.73 1.29
EV to EBITDA 8.87 5.62 11.85

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