Check Before You Invest : Hemant Surgical Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Hemant Surgical Industries Ltd belong to?

Hemant Surgical Industries Ltd belongs to the Healthcare sector, operating specifically within the Medical Equipment/Supplies/Accessories segment.

Q.2 Is Hemant Surgical Industries Ltd a good quality company?

Hemant Surgical Industries Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Hemant Surgical Industries Ltd undervalued or overvalued?

Hemant Surgical Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Hemant Surgical Industries Ltd a good buy now?

Hemant Surgical Industries 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 Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd revenue growth is 0.9% for FY-2025, which is below its 5-year CAGR of 13.68%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Return on capital employed is 16.58% for FY-2025, which is below its 5-year historical median of 29.87%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Return on Asset is 6.57%, which is below its 5-year historical median of 9.49%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Return on equity is 13.8% for FY-2025, which is below its 5-year historical median of 25.06%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Cash conversion cycle is 77 days, above its 5-year historical median of 30 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.86	1.42
ROE	13.8	25.06
ROCE	16.58	29.87
Cash Conversion Cycle	77 days	30 days

Q.6 Gross Profit margin of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.3% for FY-2025, which is above its 5-year median of 10%, indicating increasing margins.

Q.7 Operating Profit Margin of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.73% for FY-2025, which is in line with its 5-year median of 9.68% indicating stable margins.

Q.8 Net Profit Margin of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Net Profit Margin is 7.63% for FY-2025, is above with its 5-year median of 7%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.3	10
Operating Profit Margin	9.73	9.68
Net Profit Margin	7.63	7

Q.9 Debt to Equity ratio of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Debt-to-Equity ratio is 0.49, which is above with the industry average of 0.36, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Hemant Surgical Industries Ltd?

Hemant Surgical Industries Ltd Debt to cash flow from operations is 3.46, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hemant Surgical Industries Ltd?

Promoters hold 58.90% of the Hemant Surgical Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hemant Surgical Industries Ltd vs industry peers?

Hemant Surgical Industries Ltd revenue CAGR is 13.68%, compared to the industry median CAGR of 13.8%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	0.9	13.8
Gross Profit Growth	-14.3	28.3
Operating Profit Growth	-10	17.4
Net Profit Growth	-20	29.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.86	0.73
ROE	13.8	15.79
ROCE	16.58	20.14
Cash Conversion Cycle (days)	76.65	89

Valuation & price assessment

Q.1 Stock return of Hemant Surgical Industries Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 205.58% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	205.6%

Q.3 Valuation ratios of Hemant Surgical Industries Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	48.29	22.63	33.40
Price to Book	3.44	3.30	3.47
Price to Sales	3.69	1.64	3.50
EV to EBITDA	28.94	13.46	19.31

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