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Johnson Controls - Hitachi Air Conditioning India Ltd. Stock Analysis

Mid Cap
Evaluated by 1274 users | BSE: 523398 | NSE: JCHAC |
Air Conditioners
Hitachi Home and Life Solutions (India), popularly known as Hitachi, is engaged in manufacturing a range of electronic home solutions.Hitachi Home and Life Solutions (India), incorporated in 1984, is a subsidiary of Hitachi Home & Life Solutions Inc, Japan. The company is among the leading...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Johnson Controls - Hitachi Air Conditioning India Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 14.16%4.96%6.73%6.58%20.99%12.24%16.98%20.2%13.69%11.34%
Value Creation Index 0.03-0.64-0.51-0.520.53-0.110.240.470.00NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7647989301,1001,5731,6411,9172,1852,2412,197
Y-o-Y Gr. Rt.-4.5%16.5%18.3%43%4.3%16.9%14%2.6%-2%
Adjusted EPS (Rs.) 12.412.767.666.2129.4219.2430.6638.4133.3133.11
Y-o-Y Gr. Rt.--77.8%177.5%-18.9%373.8%-34.6%59.4%25.3%-13.3%-0.6%
Book Value per Share (Rs.) 75.374.9779.1688.27115.07131.64161.91196.84225.45253.23
Adjusted Net Profit 28.36.317.616.98052.383.410490.690
Net Op. Cash Flow (Rs. Cr.) -8.926.267.75854.761.617297.2-81140
Debt to Cash Flow from Ops -10.593.792.452.152.552.610.350.13-2.341.13
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Johnson Controls - Hitachi Air Conditioning India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.5%6.9%4.7%-2%
Adjusted EPS 11.5%2.4%2.6%-0.6%
Book Value per Share 14.417.116.112.3
Share Price 33.9% 9.1% -4.5% 10.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 17.793.678.637.0928.9315.5920.8921.4115.7813.83
Operating Profit Margin (%) 7.684.355.355.538.977.688.99.387.68.15
Net Profit Margin (%) 3.710.791.891.545.093.194.354.784.044.1
Debt to Equity 0.550.580.910.520.450.450.140.020.310.23
Working Capital Days 173196182169146178163169204227
Cash Conversion Cycle 42322821345240396171
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 74.25%
Institutions 16.89%
Non-Institutions 8.86%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Johnson Controls - Hitachi Air Conditioning India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Johnson Controls - Hitachi Air Conditioning India Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Johnson Controls - Hitachi Air Conditioning India Ltd.'s performance infers:

Johnson Controls - Hitachi Air Conditioning India Ltd. earnings have grown by 2.4%, whereas share price has appreciated 9.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Johnson Controls - Hitachi Air Conditioning India Ltd. share prices over the last 10 years. Here is what we found out:

Johnson Controls - Hitachi Air Conditioning India Ltd. share price has appreciated 21.8% annually over the past ten years.

Hitachi Home and Life Solutions (India), popularly known as Hitachi, is engaged in manufacturing a range of electronic home solutions.

Hitachi Home and Life Solutions (India), incorporated in 1984, is a subsidiary of Hitachi Home & Life Solutions Inc, Read More

Hitachi Home and Life Solutions (India), popularly known as Hitachi, is engaged in manufacturing a range of electronic home solutions.

Hitachi Home and Life Solutions (India), incorporated in 1984, is a subsidiary of Hitachi Home & Life Solutions Inc, Japan. The company is among the leading air-conditioning companies in India, which exports to SAARC, Middle East and few more countries globally.

Headquartered in Ahmedabad (Gujarat), the company's manufacturing unit are located at Kadi (Gujarat) and Jammu. The company has installed capacity of 250,000 units a year.

Hitachi Home & Life has a marketing network of 18 branches, 250 sales and service dealers, more than 800 showroom dealers and 350 service points.

Products

Air-Conditioning- The company produces range of products such as window ACs, split ACa, tower and packaged air conditioners

Hitachi manufactures 2- and 3-door refrigerators. It also manufactures fully automatic machines.

Milestones

1984- The company was incorporated as Acquest Air conditioning Systems.

1991- The company launched its first side throw Air Conditioner (AC).

1992- The company launched the first Hi Wall Mounted Split AC.

1996- The company introduced the first ceiling mounted split AC. 

1997- It launched its first Home AC brand – Nidra.

1999- The company launched 'Hitachi' brand of airconditioners in India.  

2001- Hitachi conducted first ever mass marketing of ACs with remote microprocessor controlled intelligence – Logicool.

2003- The company changed its name to Hitachi Home and Life Solutions (India).

2004- It introduced small split ACs in the world by using Lambda technology and named it as Hitachi Atom.

It introduced the most powerful and silent window AC using Twin Turbo Technology and named it as Quadricool.

2005- Hitachi launched Quadricool -- a window AC that used twin motor technology.

For a cleaner and healthier environment, Hitachi launched UV Fresh technology in Atom.

The company launched Atom + One technology in split ACs that would cool two rooms with one unit.

The company also launched Atom XL - A small cooling solution for the large areas.

It introduced Hitachi refrigerators in India

The company launched fully automatic washing machines in India.

2010
Launched i-TEC, India's First Inverter airconditioner which is made in India & designed for 520 C with Hitachi's patented PAM technology
Launched Fully loaded Kaze range of air conditioners for the mass premium segment
Started manufacturing of water cooled chiller of 40 HP – 120 HP capacities in India
Introduced Company Owned and Company Operated Service Centres - Hitachi Customer Satisfaction (HCS)

2011
Launched i-Clean, India's  First air conditioner with Automatic filter cleaning technology by which it cleans its filter automatically
Launched Summer, India's  First 5 star rated Window air conditioner

2012
Introduced India's First star rated Cassette air conditioner
Introduced  5 star rated Summer TM window air conditioner with twin motor technology
Introduced Inverter technology in refrigerators

2013
Launched i-Clean Inverter AC and i-Clean Hot & Cold Inverter AC
Launched India's First French Door Bottom Freezer Refrigerator.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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