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Check Before You Invest : HRH Next Services Ltd

BSE: 0 NSE: HRHNEXT ISIN: INE0R3501012
  |   Sector:  IT & ITES   |   Industry:  BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does HRH Next Services Ltd belong to?
HRH Next Services Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.
Q.2 Is HRH Next Services Ltd a good quality company?
HRH Next Services Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is HRH Next Services Ltd undervalued or overvalued?
HRH Next Services Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is HRH Next Services Ltd a good buy now?
HRH Next Services 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 HRH Next Services Ltd?
HRH Next Services Ltd revenue growth is 27.5% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of HRH Next Services Ltd?
HRH Next Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.5% for FY-2025 , which is above its 5 year median of 11.8% , indicating increasing margins.
Q.3 Operating Profit Margin of HRH Next Services Ltd?
HRH Next Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.56% for FY-2025 , which is above its 5 year median of 14.35% indicating increasing margins.
Q.4 Net Profit Margin of HRH Next Services Ltd?
HRH Next Services Ltd Net Profit Margin is 5.43% for FY-2025 , is above with its 5 year median of 4.06%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 12.5 11.8
Operating Profit Margin 14.56 14.35
Net Profit Margin 5.43 4.06
Q.5 Return on Asset of HRH Next Services Ltd?
HRH Next Services Ltd Return on Asset is 6.8%, which is above its 5 year historical median of 5.88%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of HRH Next Services Ltd?
HRH Next Services Ltd Return on equity is 10.91% for FY-2025 , which is below its historical median of 11.73%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of HRH Next Services Ltd?
HRH Next Services Ltd Return on capital employed is 15.33% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of HRH Next Services Ltd?
HRH Next Services Ltd Cash conversion cycle is 44 days, below its historical median of 44 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.25 1.86
ROE 10.91 11.73
ROCE 15.33 17.01
Cash Conversion Cycle 44 days 44 days
Q.9 Debt to Equity ratio of HRH Next Services Ltd?
HRH Next Services Ltd Debt-to-Equity ratio is 0.26 , which is above with the industry average of 0.06 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of HRH Next Services Ltd?
HRH Next Services Ltd Debt to cash flow from operations is -11.03 , 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 HRH Next Services Ltd?
Promoters hold 55.59% of the HRH Next Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of HRH Next Services Ltd vs industry peers?
HRH Next Services Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 4.16% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 57.8 35.5
Gross Profit 7.2 4.4
Operating Profit 8.4 4.4
Net Profit 3.1 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.25 0.73
ROE 10.91 11.15
ROCE 15.33 15.65
Cash Conversion Cycle (days) 44.01 40

Valuation & price assessment

Q.1 Stock return of HRH Next Services Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -48.36% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -48.4%
Q.3 Valuation ratios of HRH Next Services 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 11.94 34.07 19.99
Price to Book 1.03 3.47 2.65
Price to Sales 0.65 1.39 3.59
EV to EBITDA 5.05 9.81 16.03

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