X

Hinduja Global Solutions Ltd. Stock Analysis

Small Cap
Evaluated by 868 users | BSE: 532859 | NSE: HGS |
BPO/ITeS
Hinduja Global Solutions started its operations with one client and 25 employees in the year 2000. Today, it is a leading provider of outsourcing solutions to a global clientele of Fortune 500 companies, From its inception, Hinduja Global Solutions had set its sights high, and was focused on...

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.
Hinduja Global Solutions Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.07%8.71%8.02%16.55%13.2%11.8%10.61%16.24%13.39%12.14%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5456317038661,0701,3761,5982,0592,1962,381
Y-o-Y Gr. Rt.-15.9%11.4%23.2%23.6%28.5%16.1%28.9%6.7%8.4%
Adjusted EPS (Rs.) 34.7527.6925.163.5253.655.7255.12100.67101.07103.92
Y-o-Y Gr. Rt.--20.3%-9.4%153.1%-15.6%4%-1.1%82.6%0.4%2.8%
Book Value per Share (Rs.) 311.42317.39322.8372.39392.53449.44476.69659.37755.69805.89
Adjusted Net Profit 71.55751.7131111116114209211217
Net Op. Cash Flow (Rs. Cr.) 85.871.497.810413128.9228165288514
Debt to Cash Flow from Ops 0.711.831.441.520.849.640.690.860.611.77
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.
Hinduja Global Solutions Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 17.8%17.3%14.2%8.4%
Adjusted EPS 12.9%14.2%23.5%2.8%
Book Value per Share 11.115.519.16.6
Share Price 9.8% 8% 6.5% 21.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 11.48.817.8418.2914.0513.2311.8817.7214.2913.31
Operating Profit Margin (%) 22.8116.2117.2320.6319.4317.4515.0815.5116.520.85
Net Profit Margin (%) 13.139.037.3515.1210.378.47.1510.179.599.11
Debt to Equity 0.10.20.210.210.140.30.160.10.110.54
Working Capital Days 174179181176177188195189246289
Cash Conversion Cycle 47323334273241669997
Entity Percentage Holding
Promoters 67.24%
Institutions 11.50%
Non-Institutions 21.26%
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 Hinduja Global Solutions Ltd. and arrived at the following conclusion:

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

The 5-year analysis of Hinduja Global Solutions Ltd.'s performance infers:

Hinduja Global Solutions Ltd. earnings have grown by 14.2%, whereas share price has appreciated 8% 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 Hinduja Global Solutions Ltd. share prices over the last 10 years. Here is what we found out:

Hinduja Global Solutions Ltd. share price has appreciated 5.8% annually over the past ten years.

Hinduja Global Solutions started its operations with one client and 25 employees in the year 2000. Today, it is a leading provider of outsourcing solutions to a global clientele of Fortune 500 companies,

From its inception, Hinduja Global Solutions had set its sights high, and was focused on building client's businesses. The success graph grew rapidly.

Between 2000 and 2003, Hinduja Global Solutions acquired businesses of major international clients, some of who were among the leaders

Hinduja Global Solutions started its operations with one client and 25 employees in the year 2000. Today, it is a leading provider of outsourcing solutions to a global clientele of Fortune 500 companies,

From its inception, Hinduja Global Solutions had set its sights high, and was focused on building client's businesses. The success graph grew rapidly.

Between 2000 and 2003, Hinduja Global Solutions acquired businesses of major international clients, some of who were among the leaders in the insurance & telecom industries, thus establishing itself as a major player to reckon with.2003 also marked the company’s entry into international markets, with the establishment of its center in Manila.

The company’s vision is to be a globally preferred business process transformation partner for its clients, creating value in their business through innovative outsourcing solutions.

The company is a part of Hinduja Group that was founded in 1914 by a young entrepreneur from Shikarpur, Parmanand Deepchand Hinduja. He spotted opportunities and seized them wherever they surfaced. He traveled to Mumbai in 1914, and quickly learnt the ropes of business. The business journey which began in Sind, entered the international arena in 1919, with an office in Iran, the first outside of India. Merchant banking and trade were the twin pillars of the business. The Group remained headquartered in Iran until 1979, when it moved to Europe.

Products  and services offered by the company are:

Consumer Electronics:

  • Parts / Accessories Sales

Health Insurance

  • Insurance Policy Sales

Banking and Financial Services

  • Credit Card Sales

Extensive and Intensive Technical Support for various consumer electronic products. including -

  • Installation
  • Configuration

Provide technical support for software applications

  • Installation
  • Configuration
  • How to use the application

Awards & Achievements:

Industry Recognition:

  • Number one of the ITES Companies in India,
  • Winner most Innovative BPO Philippines
  • Top 15 ITES BPO exporters FY07/08
  • Top 10 employer’s employee satisfaction HR practices
  • 1 of the 200 'best under a billion forbes Asia'
  • Gold Medalist Compentency Development
  • Top 2 call centre companies globally (last 3 years)
  • Gold Medalist Lean Six Sigma 

  Quality Certification:

  • ISO 9001:2000 – UKAS
  • ISO 9001:2000 – ANAB
  • ISO 27001 
  • HIPAA – Health Insurance
  • Six Sigma Process Improvement 
  • ISO 27001 – Underway
  • SAS 70   

  Milestones of the company:

2000 Launch of HTMT brand First International Customer with 23 seatsISO 9001:2000 certification

2001-2004 Acquisition of Philippines center1500 seat facility in Bangalore India Employee strength 1700

2005-2006 Acquired source oneBS 7799 certification Strategic foray into national markets 300 seat DR center in Mauritius HIPAA certification Employee strength, 7000

2007-2008 Acquired Affina Foray into more verticals Expansion into Tier 2 cities in India First Healthcare contact center in Manila ISO 27001 certification Most Innovation BPO company ICT

2009 Employee Strength 14500  Entry into the UK market Expansion into China Inorganic growth – Acquisition underway

2010-12 Acquired careline services
Expanded into Tier III centres in India- Guntur and Nagarcoil.
Operations commence at global village SEZ in Banglore.
New centres at Llolio ( Philippines) and Siliguri (India).
Acquired one line supoprt HCCA & EBOS E-SCM level-4

2014- Hinduja Global Solutions (HGS), announced the opening of a new center in Princeton, New Jersey in the US.


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

Callback