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Check Before You Invest : Hind Rectifiers Ltd

BSE: 504036 NSE: HIRECT ISIN: INE835D01023
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Hind Rectifiers Ltd belong to?
Hind Rectifiers Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Hind Rectifiers Ltd a good quality company?
Hind Rectifiers Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Hind Rectifiers Ltd undervalued or overvalued?
Hind Rectifiers Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Hind Rectifiers Ltd a good buy now?
Hind Rectifiers 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 Hind Rectifiers Ltd?
Hind Rectifiers Ltd revenue growth is 26.6% for FY-2025 , which is above its 5 year CAGR of 17% , indicating faster growth.
Q.2 Gross Profit margin of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Gross profit margin which is the profit after deduction of direct costs, is 9% for FY-2025 , which is above its 5 year median of 4.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.83% for FY-2025 , which is above its 5 year median of 6.93% indicating increasing margins.
Q.4 Net Profit Margin of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Net Profit Margin is 5.69% for FY-2025 , is above with its 5 year median of 2.1%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 9 4.2
Operating Profit Margin 10.83 6.93
Net Profit Margin 5.69 2.1
Q.5 Return on Asset of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Return on Asset is 9.99%, which is above its 5 year historical median of 3.24%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Return on equity is 26.28% for FY-2025 , which is above its historical median of 7.54%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Return on capital employed is 22.35% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Cash conversion cycle is 81 days, below its historical median of 99 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.76 1.55
ROE 26.28 7.54
ROCE 22.35 10.12
Cash Conversion Cycle 81 days 99 days
Q.9 Debt to Equity ratio of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Debt-to-Equity ratio is 1.00 , which is above with the industry average of 0.34 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Hind Rectifiers Ltd?
Hind Rectifiers Ltd Debt to cash flow from operations is 4.46 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hind Rectifiers Ltd?
Promoters hold 43.93% of the Hind Rectifiers Ltd, with 6.81% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hind Rectifiers Ltd vs industry peers?
Hind Rectifiers Ltd revenue CAGR is 16.95% , compared to the industry median CAGR of 13.21% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 655.4 143.5
Gross Profit 59 14
Operating Profit 71 13
Net Profit 37 8
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.76 1.05
ROE 26.28 9.8
ROCE 22.35 13.56
Cash Conversion Cycle (days) 81.43 102

Valuation & price assessment

Q.1 Stock return of Hind Rectifiers Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 39.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 39.2% 70% 106.1% 83.1%
Q.3 Valuation ratios of Hind Rectifiers 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 59.78 15.62 50.19
Price to Book 14.8 2.22 3.60
Price to Sales 3.53 0.77 2.68
EV to EBITDA 33.85 9.58 19.22

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