Hikal Ltd - Stock Valuation and Financial Performance

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

Hikal Share Price

264.50 -0.85 -0.32%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Hikal

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Hikal stock performance -

mw4me loader
P/E Ratio (CD):
45.58
Market Cap:
3,265 Cr.
52-wk low:
258.6
52-wk high:
328.6

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 Fair zone.

3. Is Hikal Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Hikal Ltd is likely to Fall 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 11.9%7.8%8%9.4%9.1%10.8%9.1%10.5%11%6.1%-
Value Creation
Index
-0.2-0.4-0.4-0.3-0.4-0.2-0.4-0.3-0.2-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 8298729261,0141,2961,5901,5071,7201,9432,0231,794
Sales YoY Gr.-5.1%6.2%9.5%27.8%22.7%-5.2%14.1%12.9%4.1%-
Adj EPS 6.23.43.55.96.58.77.710.712.96.25.8
YoY Gr.--45.9%3.3%70.3%9.6%33.5%-11.3%39.8%20.1%-51.8%-
BVPS (₹) 32.334.637.249.154.361.366.275.786.691.994.2
Adj Net
Profit
76.641.542.872.979.810794.513215976.572
Cash Flow from Ops. 154102186163139186285229294315-
Debt/CF from Ops. 3.55.42.73.74.63.62.32.72.32.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.4%9.3%10.3%4.1%
Adj EPS -0%-0.9%-6.9%-51.8%
BVPS12.3%11.1%11.6%6.1%
Share Price 15.4% 8.6% 22.5% -6.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
1687.812.512.5151215.115.976.2
Op. Profit
Mgn %
24.821.119.819.918.919.118.118.817.512.714.5
Net Profit
Mgn %
9.24.84.67.26.26.76.37.78.23.84
Debt to
Equity
1.41.31.1110.90.80.70.60.7-
Working Cap
Days
22123622921820620322620519819386
Cash Conv.
Cycle
9510710210610710511394908022

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 10.31%

Debt to equity has declined versus last 3 years average to 0.66

Return on Equity has declined versus last 3 years average to 6.20%

Net Profit has been subdued in last 3 years -6.85%

Sales growth is not so good in last 4 quarters at -7.44%

Latest Financials - Hikal Ltd.

Standalone Consolidated
TTM EPS (₹) 5.8 5.8
TTM Sales (₹ Cr.) 1,794 1,794
BVPS (₹.) 94.2 94.2
Reserves (₹ Cr.) 1,137 1,137
P/BV 2.81 2.81
PE 45.52 45.58
From the Market
52 Week Low / High (₹) 258.60 / 328.60
All Time Low / High (₹) 0.89 / 742.00
Market Cap (₹ Cr.) 3,265
Equity (₹ Cr.) 24.7
Face Value (₹) 2
Industry PE 48.2

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

Login/Register to view analysis.

Analyst's Notes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales8298729261,0141,2961,5901,5071,7201,9432,023
Operating Expenses 6426897458151,0541,2911,2341,3981,6021,766
Manufacturing Costs120121116124159216216233280298
Material Costs3764274655096998547769089961,107
Employee Cost 7989108117128136157164203222
Other Costs 6752556669868592123138
Operating Profit 187182181198242298273323341257
Operating Profit Margin (%) 22.6%20.9%19.5%19.6%18.7%18.8%18.1%18.8%17.5%12.7%
Other Income 34223424555
Interest 68606248495852363148
Depreciation 556467698693828596109
Exceptional Items 000-400-15000
Profit Before Tax 98605380111149127206219105
Tax 34191213344642735827
Profit After Tax 64404168771038413316078
PAT Margin (%) 7.7%4.6%4.5%6.7%6.0%6.5%5.6%7.7%8.3%3.9%
Adjusted EPS (₹)5.23.33.35.56.38.46.910.813.06.4
Dividend Payout Ratio (%)12%20%20%15%13%14%18%19%12%19%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 5055325646056697568179331,0681,133
Share Capital 16161616162525252525
Reserves 4885165475896537327929091,0431,109
Minority Interest0000000000
Debt470432469550574600561514559663
Long Term Debt255201297320297298303263287490
Short Term Debt216231172230277302258251273173
Trade Payables131137128130165160201230249313
Others Liabilities 176202138114190259301338452361
Total Liabilities 1,2821,3041,2981,3991,5971,7751,8792,0162,3282,471

Fixed Assets

Gross Block1,0321,0961,1477377889601,0651,1271,3881,564
Accumulated Depreciation38845752469155247330415508615
Net Fixed Assets644639623668634713735713879948
CWIP 6162666311879161254295412
Investments 33343111115
Inventories311314291264303364312267329317
Trade Receivables89128112256287350340486438442
Cash Equivalents 28141916273264374960
Others Assets146144183128226236266259327287
Total Assets 1,2821,3041,2981,3991,5971,7751,8792,0162,3282,471

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 154102186163139186285229294315
PBT 98605380111149142206219105
Adjustment 112127134127140159136127126163
Changes in Working Capital -36-7111-24-87-9046-581976
Tax Paid -20-13-13-20-26-33-24-47-70-29
Cash Flow From Investing Activity -23-43-64-102-110-125-164-156-284-292
Capex -51-49-59-105-106-128-158-158-273-302
Net Investments 00000000-107
Others 286-53-44-61-13
Cash Flow From Financing Activity -124-69-124-63-25-55-101-97-6-8
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -110-18747-9-520-2746169
Interest Paid -69-60-61-53-50-58-52-49-45-64
Dividend Paid -7-4-8-13-11-14-20-15-27-12
Others 6213-61-444422-49-620-100
Net Cash Flow 7-10-2-24620-24415
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)17.279.819.3212.7412.1214.4610.7415.2216.047.12
ROCE (%)17.7712.511.9211.8712.8115.2512.4416.1515.218.47
Asset Turnover Ratio0.670.680.720.770.870.940.820.880.890.84
PAT to CFO Conversion(x)2.412.554.542.41.811.813.391.721.844.04
Working Capital Days
Receivable Days38454765767384888779
Inventory Days12413011898807782615658
Payable Days11811510493776985878893

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 28-Mar-2024 16:01 is ₹264.5.
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 28-Mar-2024 16:01 the market cap of Hikal stood at ₹3,265.
The latest P/E ratio of Hikal as of 28-Mar-2024 16:01 is 45.52.
The latest P/B ratio of Hikal as of 28-Mar-2024 16:01 is 2.81.
The 52-week high of Hikal is ₹328.6 and the 52-week low is ₹258.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Hikal is ₹1,794 ( 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.

Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt.Ltd.