X

HSIL Ltd. Stock Analysis

Small Cap
Evaluated by 2169 users | BSE: 500187 | NSE: HSIL |
Ceramics/Marble/Granite/Sanitaryware
HSIL stands tall with strong market leadership in the building products market, and a dominant player in the container glass segment.  The building product commands more than 38% of the market in the sanitary ware industry, while the container glass is the second largest player in...

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.
HSIL Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.84%9.47%6.63%5.18%7.14%7.11%6.04%4.81%2.41%5.3%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0521,3391,5741,7461,8571,9592,0722,2501,6051,859
Y-o-Y Gr. Rt.-27.3%17.5%11%6.3%5.5%5.7%8.6%-28.7%15.9%
Adjusted EPS (Rs.) 13.1716.95139.7114.6416.6615.0411.522.388.94
Y-o-Y Gr. Rt.-28.7%-23.3%-25.3%50.8%13.8%-9.7%-23.4%-79.3%275.6%
Book Value per Share (Rs.) 106.16153.41164.91169.8198.58191.9200.57205.99173.74173.85
Adjusted Net Profit 8711285.964.110612010983.317.264.6
Net Op. Cash Flow (Rs. Cr.) 19315321.818426631020557.7250107
Debt to Cash Flow from Ops 1.995.4745.885.982.822.014.4621.33.519.32
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.
HSIL Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.5%0-3.5%15.9%
Adjusted EPS -4.2%-9.4%-15.9%275.6%
Book Value per Share 5.6-2.6-4.70.1
Share Price -8.7% -22.6% -43.3% 58.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 14.6313.068.175.88.288.537.665.671.255.14
Operating Profit Margin (%) 20.3419.2216.8615.9818.5316.8314.3712.3711.3115.97
Net Profit Margin (%) 8.268.365.463.675.76.155.253.71.073.48
Debt to Equity 0.550.830.920.980.520.450.630.830.70.79
Working Capital Days 146149173190192182177195242174
Cash Conversion Cycle 70799911712111810912014389
Entity Percentage Holding
Promoters 53.91%
Institutions 7.69%
Non-Institutions 38.40%
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 HSIL Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that HSIL Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of HSIL Ltd.'s performance infers:

HSIL Ltd. earnings have declined by -9.4%, whereas share price has depreciated -22.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of HSIL Ltd. share prices over the last 10 years. Here is what we found out:

HSIL Ltd. share price has depreciated -5.7% annually over the past ten years.

HSIL stands tall with strong market leadership in the building products market, and a dominant player in the container glass segment.  The building product commands more than 38% of the market in the sanitary ware industry, while the container glass is the second largest player in India.While HSIL predominantly caters to the Indian market, in this era of globalization, both the Building Products Division and the Container Glass Division have expanded their horizons to cater to the

HSIL stands tall with strong market leadership in the building products market, and a dominant player in the container glass segment.  The building product commands more than 38% of the market in the sanitary ware industry, while the container glass is the second largest player in India.While HSIL predominantly caters to the Indian market, in this era of globalization, both the Building Products Division and the Container Glass Division have expanded their horizons to cater to the international market as well.

HSIL is recognized among the top 300 companies in India, while rated amongst the best 100 small and medium sized companies in the world by the Forbes Magazine.

With its recent foray into the retail of home interior solutions, the company has extended their outreach to the end-customer.  EVOK, their retail brand specializes in providing a comfortable and convenient one-stop shopping experience, currently located in NCR, upon consolidating our hold within North India, EVOK plans to become the household name across urban India for value-for-money home interior solutions.

Milestones:

1960:  Hindustan Sanitaryware & Inds Ltd (HSIL) was incorporated as Hindustan Twyfords Ltd in 1960 by the Somany Group in collaboration with Twyfords, Ltd., UK., to introduce Vitreous China Ceramic Sanitaryware for the first time in India. 

1962:  Sanitaryware plant was commissioned at Bahadurgarh and the plant was inaugurated by the then Chief Minister of Punjab Sardar Kairon. 

1981:  HSIL acquired Associated Glass Industries Limited (AGI), a loss making and closed company at Hyderabad. 

1989:  HSIL acquired Krishna Ceramics Ltd, manufacturers of Sanitaryware at Bibinagar (AP), a loss making company 

1990:  HSIL installs first state of the art open flame tunnel kiln from UK to bring in the latest technology for firing of Sanitaryware. 

1998:  HSIL receives Quality Management Systems certification. ISO 9002  1999: 

Rated one of Forbes Global 100 Best Small & Medium Companies (Revenues less than U.S.$500 million per annum).  1999:  HSIL acquired Raasi Ceramics at Hyderabad to further strengthen its market share in the South 

1999:  HSIL receives Environment Management Systems EN ISO 14001

1996 certification 

2001 HSIL receives Quality Management Systems certification. ISO 9001:2000. 

2003:  HSIL signs a strategic partnership with Sanitec of Europe to bring in their largest selling European brand 'KERAMAG' to India. 

2003:  HSIL receives OHSAS 18001: 1999 certifications. 

2004:  HSIL is awarded 'Business Superbrand ' by the super Brand Council. 

2005:  HSIL voted the fastest growing building products company in sanitaryware & tiles category by Construction World Magazine  

2006:  HSIL signs strategic partnership with 'TEUCO' the world leaders in Wellness Products to offer complete range of wellness products in India. 

2006:  Trusted by millions of household, Hindware awarded ‘Consumer Validated Super brand’ status. Award given by London based brand institute. Hindware is awared 'Consumer Superbrand' by the Super Brand Council. 

2006:  Hindware receives the 'Mera Brand Award' - Indias Most preferred brand. 

2006:  Hindware rated 75th amongst “The 100 most valuable brands in India” by the 4P’s journal (the only bathroom brand in this selection). 

2007:  HSIL forays, through its subsidiary - Hindware Home Retail Pvt Ltd, into the retail sector. Launches Home Interior Fashion Mega stores providing speciality home interior solutions under the EVOK Brand. 

2007:  HSIL figures Most Admired 100 companies list by 4P B&M magazine. 

2007:  Hindware rated 75th amongst “The 100 most valuable brands in India” by the 4P’s journal (the only bathroom brand in this selection).  

2007:  Hindware Receives Readers Digest Trusted Brand GOLD Award. 

2007:  HSIL voted the fastest growing building products company in sanitaryware & tiles category by Construction World Magazine 3 years continuously 2005-07.  

2008:  The first EVOK store is opened at Faridabad, Haryana. 

2008:  The Second EVOK store gets started at Delhi. 

2008:  Hindware Receives Readers Digest Trusted Brand GOLD Award. 

2008:  Hindware Poncho Design for Kids awarded the Elle Decor International Design Award. 

2009:  HSIL sets up second green field container glass factory at Bhongir, Andhra Pradesh with a production capacity of 425 tonnes/ day. 

2009:  Hindustan Sanitaryware & Inds Ltd is renamed as HSIL LIMITED   2009:  'Hindware Lacasa' the companys First brand store opens at Cochin.  

2009:  Trusted by millions of household, Hindware awarded ‘Consumer Validated Super brand’ status. Award given by London based brand institute. Hindware is awared 'Consumer Superbrand' by the Super Brand Council Only sanitaryware brand to get the award 

2009:  Hindware Receives Readers Digest Trusted Brand PLATINUM Award, Only Sanitaryware Company to get the Platinum Award 

2009:  HSIL wins the Golden Peacock Environment Management Award.  2009:  EVOK opens it next store at Gurgaon and Gaziabad 

2009:  'Hindware Lacasa' the companys second brand store opens at Mumbai. 

2010 - HSIL - Acquisition in UK.
-

2011 - Hind Sanitry - Share Purchase Agreement with M/s Garden Poly.
- Hindware launches a vibrant new Identity.

Products of the company include:

• Sanitaryare• Faucets• Wellness Product• Kitchen Appliances

Awards and Recognition:

• Golden Peacock Awards• Selected Business Superbrand India 2008

• Elle Deco International Design Award for Best Product Design

• Reader's Digest Trusted Brand

• Mera Brand  

• Most Admired 100 Companies

• P's B & M India's 100 Most Valuable Awards

2010
-HSIL is awarded the ‘Business Superbrand’ by the Super Brand Council

2011
- HSIL Ltd receives the ‘The Bizz Award 2011’ in Italy.
- HSIL Ltd honoured with the Golden Peacock Innovation Award 2011.
- Hindware awarded ‘Consumer Validated Super brand’ status by London based Super Brand Council.
-HSIL is awarded the ‘Business Superbrand’ by the Super Brand Council

2012
- Mr. R. K Somany, recognised as the Corporate Icon of the Year by Power Brands.
- R K Somany recognised as the Corporate Icon of the Year.

2013
-Hindware awarded ‘Consumer Validated Super brand’ status by London based Super Brand Council.
-Hindware bags Reader’s Digest 2013 most trusted brand ‘Gold’ award
-Hindware tiles awarded Griha certification a first in its category"

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

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