Hikal Ltd - Stock Valuation and Financial Performance

BSE: 524735 | NSE: HIKAL | Pharmaceuticals & Drugs | Small Cap

Hikal Share Price

380.35 14.05 3.84%
as on 31-Oct'24 16:01

DeciZen - make an informed investing decision on Hikal

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Hikal stock performance -

mw4me loader
P/E Ratio (CD):
69.19
Market Cap:
4,689.7 Cr.
52-wk low:
258.6
52-wk high:
410.9

Is Hikal Ltd an attractive stock to invest in?

1. Is Hikal Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Hikal Ltd is a average quality company.

2. Is Hikal Ltd undervalued or overvalued?

The key valuation ratios of Hikal Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Hikal Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Hikal Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Hikal:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Hikal Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 12.5%11.9%11.9%12.8%15.3%12.4%16.2%15.2%8.5%7.8%-
Value Creation
Index
-0.1-0.2-0.2-0.10.1-0.10.20.1-0.4-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 8729261,0141,2961,5901,5071,7201,9432,0231,7851,786
Sales YoY Gr.-6.2%9.5%27.8%22.7%-5.2%14.1%12.9%4.1%-11.8%-
Adj EPS 3.43.55.96.58.77.710.712.96.25.65.5
YoY Gr.-3.3%70.3%9.6%33.5%-11.3%39.8%20.1%-51.8%-9.4%-
BVPS (₹) 34.637.249.154.361.366.275.786.691.996.396.7
Adj Net
Profit
41.542.872.979.810794.513215976.569.368
Cash Flow from Ops. 102186163139186285229294315187-
Debt/CF from Ops. 5.42.73.74.63.62.32.72.32.44.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.3%2.3%1.2%-11.8%
Adj EPS 5.9%-8.3%-19.4%-9.4%
BVPS12.1%9.5%8.4%4.8%
Share Price 15.1% 25.9% -11.4% 35.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
87.812.512.5151215.115.9765.7
Op. Profit
Mgn %
21.119.819.918.919.118.118.817.512.71515.4
Net Profit
Mgn %
4.84.67.26.26.76.37.78.23.83.93.8
Debt to
Equity
1.31.1110.90.80.70.60.70.7-
Working Cap
Days
23622921820620322620519818519889
Cash Conv.
Cycle
1071021061071051139490809319

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 0.69

Return on Equity has declined versus last 3 years average to 5.70%

Sales growth has been subdued in last 3 years 1.23%

Net Profit has been subdued in last 3 years -19.37%

Sales growth is not so good in last 4 quarters at -10.31%

Latest Financials - Hikal Ltd.

Standalone Consolidated
TTM EPS (₹) 5.5 5.5
TTM Sales (₹ Cr.) 1,786 1,786
BVPS (₹.) 96.7 96.7
Reserves (₹ Cr.) 1,168 1,168
P/BV 3.93 3.93
PE 69.12 69.19
From the Market
52 Week Low / High (₹) 258.60 / 410.90
All Time Low / High (₹) 0.89 / 742.00
Market Cap (₹ Cr.) 4,690
Equity (₹ Cr.) 24.7
Face Value (₹) 2
Industry PE 46.8

Management X-Ray of Hikal:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Hikal

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales8729261,0141,2961,5901,5071,7201,9432,0231,785
Operating Expenses 6897458151,0541,2911,2341,3981,6021,7661,518
Manufacturing Costs121116124159216216233280298304
Material Costs4274655096998547769089961,107825
Employee Cost 89108117128136157164203222247
Other Costs 52556669868592123138143
Operating Profit 182181198242298273323341257267
Operating Profit Margin (%) 20.9%19.5%19.6%18.7%18.8%18.1%18.8%17.5%12.7%15.0%
Other Income 2234245552
Interest 60624849585236314856
Depreciation 6467698693828596109118
Exceptional Items 00-400-150000
Profit Before Tax 60538011114912720621910596
Tax 19121334464273582726
Profit After Tax 40416877103841331607870
PAT Margin (%) 4.6%4.5%6.7%6.0%6.5%5.6%7.7%8.3%3.9%3.9%
Adjusted EPS (₹)3.33.35.56.38.46.910.813.06.45.6
Dividend Payout Ratio (%)20%20%15%13%14%18%19%12%19%21%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 5325646056697568179331,0681,1331,188
Share Capital 16161616252525252525
Reserves 5165475896537327929091,0431,1091,163
Minority Interest0000000000
Debt432469550574600561514559663711
Long Term Debt201297320297298303263287490423
Short Term Debt231172230277302258251273173289
Trade Payables137128130165160201230249313279
Others Liabilities 202138114190259301338452276309
Total Liabilities 1,3041,2981,3991,5971,7751,8792,0162,3282,3852,487

Fixed Assets

Gross Block1,0961,1477377889601,0651,1271,3881,5641,802
Accumulated Depreciation45752469155247330415508615732
Net Fixed Assets6396236686347137357138799481,071
CWIP 62666311879161254295412414
Investments 33431111155
Inventories314291264303364312267329317304
Trade Receivables128112256287350340486438442550
Cash Equivalents 14191627326437496021
Others Assets144183128226236266259327202122
Total Assets 1,3041,2981,3991,5971,7751,8792,0162,3282,3852,487

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 102186163139186285229294315187
PBT 60538011114914220621910596
Adjustment 127134127140159136127126163175
Changes in Working Capital -7111-24-87-9046-581976-53
Tax Paid -13-13-20-26-33-24-47-70-29-30
Cash Flow From Investing Activity -43-64-102-110-125-164-156-284-292-174
Capex -49-59-105-106-128-158-158-273-302-204
Net Investments 0000000-1070
Others 6-53-44-61-1330
Cash Flow From Financing Activity -69-124-63-25-55-101-97-6-8-27
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -18747-9-520-2746169-49
Interest Paid -60-61-53-50-58-52-49-45-64-78
Dividend Paid -4-8-13-11-14-20-15-27-12-15
Others 13-61-444422-49-620-100115
Net Cash Flow -10-2-24620-24415-14
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)9.819.3212.7412.1214.4610.7415.2216.047.126
ROCE (%)12.511.9211.8712.8115.2512.4416.1515.218.477.82
Asset Turnover Ratio0.680.720.770.870.940.820.880.890.860.73
PAT to CFO Conversion(x)2.554.542.41.811.813.391.721.844.042.67
Working Capital Days
Receivable Days454765767384888779101
Inventory Days1301189880778261565863
Payable Days11510493776985878893131

Hikal Ltd Stock News

Hikal Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Hikal on 31-Oct-2024 16:01 is ₹380.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 31-Oct-2024 16:01 the market cap of Hikal stood at ₹4,689.7.
The latest P/E ratio of Hikal as of 31-Oct-2024 16:01 is 69.12.
The latest P/B ratio of Hikal as of 31-Oct-2024 16:01 is 3.93.
The 52-week high of Hikal is ₹410.9 and the 52-week low is ₹258.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Hikal is ₹1,786 ( Cr.) .

About Hikal Ltd

Established in 1988 Hikal is a reliable partner to companies in the Pharmaceuticals, Biotech, Agrochemicals and Specialty Chemicals industries. They provide world-class Active Ingredients, Intermediates and R&D services and solutions in a safe, secure and confidential manner. Their advanced infrastructure has been inspected and approved by globally recognized bodies such as the USFDA.

Hikal is a company built on enduring relationships. They are committed to delivering value as a complementary partner. By delivering on this commitment, they have earned the respect and recognition of leading companies from around the world.

Hikal is engaged in R&D, manufacturing and marketing of fine chemicals for the Pharmaceutical and Agrochemical industries. It collaborates with innovator companies and offer solutions in Contract Research, Custom Synthesis and Custom Manufacturing. Its people have extensive expertise in multi-disciplinary project management.

  • Discovery Research Support It supplies molecules for discovery research on a contract basis. It is the preferred partner of leading multinational companies in different phases of new drug discovery and development. Backed by state-of-the-art instrumentation and an experienced team of scientists, we focus on research on new molecules.
  • Process Development It has a successful track record in developing non-infringing processes and scaling them up from laboratory to kilo scale to commercial scale production. Its engineering expertise enables it to successfully set up chemical plants, manage and develop a wide range of processes that conform to stringent quality and safety guidelines.
  • Analytical Method Development It undertakes method validation of new substances. The activities include in-process analysis, identification and quantification of impurities.
  • Custom Manufacturing It also undertakes custom manufacturing of key intermediates and active substances for pharmaceutical and agrochemical companies worldwide. Its intermediates are being used in new candidate drugs in Phase 1, Phase 2 and Phase 3 stage of clinical trials as well as in commercialized drugs.

Products of the company include:

  • Pharmaceuticals Products: Gabapentin  ,Bupropion Hydrochloride ,Gemfibrozil, Pentoxifylline, Ondansetron Hydrochloride , Ondansetron Base, Triprolidine Hydrochloride ,Acebutolol Hydrochloride, Cinnarizine ,Flunarizine Hydrochloride and Levetiracetam
  • Agrochemicals Products: Diuron ,Ethion ,Isoproturon  ,Metoxuron  ,Quinalphos and Thiabendazole 

Different divisions of the company are:

Pharmaceuticals Division

Hikal is a partner of choice to the global pharmaceutical industry. They support the pharmaceutical industry from the early lead generation stage till the launch of new chemical entities. Hikal's specialization spans the entire spectrum from conventional synthesis to complex chiral chemistry and is backed by state-of-the-art analytical facilities.

Agrochemicals Division

They are the preferred choice of leading Crop Protection companies in the world. Multinational companies leverage their expertise in developing non-infringing processes for molecules and analytical development.

R&D Division:

R&D is a core competency of Hikal. They assign top most priority to investments in world-class scientists and laboratory instrumentation. Their R&D team is mentored by a Scientific Advisory Board of eminent scientists.

They have an impressive R&D record. Their scientists have published several publications and received patents. They have developed several innovative and cost effective processes for several well known APIs.

Hikal has a global footprint. Its presence in strategic markets enables it to serve the customers better. Hikal has a majority stake in Marsing & Co A/S, a key player in the marketing of Active Pharmaceutical Ingredients (APIs) and raw materials for pharma majors and the chemical industry. Based in Denmark, the company has a distribution network in 100 countries across Europe, Latin America, Africa and the Middle East.

Awards & Achievements:

The companies facilities are ISO 17025, ISO 9000-2000, ISO 14001 and OHSAS 18001 certified.

Recent developments

The domestic credit rating agency, ICRA has assigned LBBB+ to Rs 1,017.4 million and $ 33.1 million long term loans of HIKAL. ICRA has assigned LBBB+ rating outstanding on the Rs. 650 million fund-based bank limits of HIKAL. ICRA also has assigned A2 rating outstanding on the Rs 1,210 million fund based and Rs 480 million non-fund based bank limits.

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