SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Hindustan Bio Sciences Ltd

BSE: 532041 NSE: ISIN: INE597C01021
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Hindustan Bio Sciences Ltd belong to?
Hindustan Bio Sciences Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Hindustan Bio Sciences Ltd a good quality company?
Hindustan Bio Sciences Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Hindustan Bio Sciences Ltd undervalued or overvalued?
Hindustan Bio Sciences Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 61.58 -
Price to Book 9.37 7.43
Price to Sales 8.16 8.91
EV to EBITDA 70.84 38.54
Q.4 Is Hindustan Bio Sciences Ltd a good buy now?
Hindustan Bio Sciences 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd revenue growth is -22.9% for FY-2025, which is below its 5-year CAGR of -16.03%, indicating slower growth.

Q.2 Gross Profit margin of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.1% for FY-2025, which is above its 5-year median of -3.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.55% for FY-2025, which is above its 5-year median of -3.06% indicating increasing margins.

Q.4 Net Profit Margin of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Net Profit Margin is 12.38% for FY-2025, is above its 5-year median of -4.39%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.1 -3.5
Operating Profit Margin (%) 12.55 -3.06
Net Profit Margin (%) 12.38 -4.39

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Return on Asset is 2.97%, which is above its 5-year historical median of -1.29%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Return on capital employed is 2.94% for FY-2025, which is above its 5-year historical median of -1.1%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Return on equity is 11.78% for FY-2025, which is above its 5-year historical median of -5.28%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Cash conversion cycle is 198 days, above its 5-year historical median of 140 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 (x) 0.24 0.24
ROE (%) 11.78 -5.28
ROCE (%) 2.94 -1.1
Cash Conversion Cycle 198 days 140 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Debt-to-Equity ratio is 2.77, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Hindustan Bio Sciences Ltd?
Hindustan Bio Sciences Ltd Debt to cash flow from operations is 92.44, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Hindustan Bio Sciences Ltd?

Q.1 Promoter shareholding and pledge status of Hindustan Bio Sciences Ltd?
Promoters hold 12.19% of the Hindustan Bio Sciences Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Hindustan Bio Sciences Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Hindustan Bio Sciences Ltd vs industry peers?
Hindustan Bio Sciences Ltd revenue CAGR is -16.03%, compared to the industry median CAGR of 5.35%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -22.9 5.4
Gross Profit Growth (%) 66.7 14
Operating Profit Growth (%) 66.7 11.5
Net Profit Growth (%) 66.7 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.24 0.79
ROE (%) 11.78 9.17
ROCE (%) 2.94 11.52
Cash Conversion Cycle (days) 197.75 76

Valuation & price assessment

Q.1 Stock return of Hindustan Bio Sciences Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
14% 15.7% -7% -3%
Q.2 Valuation ratios of Hindustan Bio Sciences Ltd vs historical?
The current P/E ratio of 61.58 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 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 61.58 - 31.09
Price to Book 9.37 7.43 2.85
Price to Sales 8.16 8.91 2.82
EV to EBITDA 70.84 38.54 15.99

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×