Hinduja Global Solutions Ltd - Stock Valuation and Financial Performance

BSE: 532859 | NSE: HGS | BPO/ITeS | Small Cap

Hinduja Global Soln. Share Price

865.45 -11.75 -1.34%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Hinduja Global Soln.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Hinduja Global Solutions stock performance -

mw4me loader
P/E Ratio (SA):
0.00
Market Cap:
4,026.1 Cr.
52-wk low:
720.3
52-wk high:
1,174.9

Is Hinduja Global Solutions Ltd an attractive stock to invest in?

1. Is Hinduja Global Solutions Ltd a good quality company?

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

2. Is Hinduja Global Solutions Ltd undervalued or overvalued?

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

3. Is Hinduja Global Solutions Ltd a good buy now?

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

10 Year X-Ray of Hinduja Global Soln.:

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.
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

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 16.6%13.2%11.8%10.6%16.2%13.2%11.2%-1.3%-0.3%4.6%-
Value Creation
Index
0.2-0.1-0.2-0.20.2-0.1-0.2-1.1-1.0-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 8661,0701,3761,5982,0591,8502,1425281,2501,3231,502
Sales YoY Gr.-23.6%28.5%16.1%28.9%-10.1%15.8%-75.3%136.7%5.9%-
Adj EPS 31.826.827.927.650.35048.4-11.1-24.129.3-3.2
YoY Gr.--15.6%4%-1.1%82.7%-0.7%-3.2%-123%NANA-
BVPS (₹) 186.2196.3224.7238.3329.7377.9402.9456.11,012.9839.2659.4
Adj Net
Profit
131111116114209208202-46.5-101154-15
Cash Flow from Ops. 10413128.9228165288514418-164-108-
Debt/CF from Ops. 1.50.89.60.70.90.61.81.8-4.6-4.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.8%-8.5%-14.8%5.9%
Adj EPS -0.9%-10.3%-15.4%NA
BVPS18.2%20.5%27.7%-17.2%
Share Price 12.8% 21.8% 0.3% -18.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
18.314.113.211.917.714.112.4-2.6-3.33.6-0.4
Op. Profit
Mgn %
20.619.417.515.115.518.421.3-11.42.22.92.6
Net Profit
Mgn %
15.110.48.47.210.211.39.4-8.8-8.111.6-1
Debt to
Equity
0.20.10.30.20.10.10.50.40.20.1-
Working Cap
Days
1761771881951892923221,5157731,014280
Cash Conv.
Cycle
342732416611810746511031166

Recent Performance Summary

Sales growth is good in last 4 quarters at 15.69%

Return on Equity is Poor

Sales growth has been subdued in last 3 years -14.83%

Net Profit has been subdued in last 3 years -15.43%

Latest Financials - Hinduja Global Solutions Ltd.

Standalone Consolidated
TTM EPS (₹) -3.2 14.7
TTM Sales (₹ Cr.) 1,502 4,587
BVPS (₹.) 659.4 1,577.4
Reserves (₹ Cr.) 3,021 7,291
P/BV 1.31 0.55
PE 0.00 59.08
From the Market
52 Week Low / High (₹) 720.25 / 1174.85
All Time Low / High (₹) 46.00 / 1974.00
Market Cap (₹ Cr.) 4,026
Equity (₹ Cr.) 46.5
Face Value (₹) 10
Industry PE 65.8

Management X-Ray of Hinduja Global Soln.:

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 Hinduja Global Soln.

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
Sales8661,0701,3761,5982,0591,8502,1425281,2501,323
Operating Expenses 6888621,1361,3751,7401,5111,6865951,2241,285
Manufacturing Costs62741081161289511228404399
Material Costs0000000041
Employee Cost 5296658561,0391,3451,1551,379457585646
Other Costs 96124172220267260195110231238
Operating Profit 179208240223318340456-672738
Operating Profit Margin (%) 20.6%19.4%17.5%13.9%15.5%18.4%21.3%-12.6%2.1%2.9%
Other Income 6629312721428650173398
Interest 1816151610115817125101
Depreciation 42618278847917743221233
Exceptional Items 0000000000
Profit Before Tax 185161174156246292308-76-147103
Tax 50485254336578-25-62-139
Profit After Tax 135113122102213227230-51-85242
PAT Margin (%) 15.5%10.5%8.9%6.4%10.3%12.3%10.7%-9.7%-6.8%18.3%
Adjusted EPS (₹)32.627.229.524.551.154.455.2-12.2-20.446.0
Dividend Payout Ratio (%)31%37%25%20%10%9%18%-164%-1,202%33%

Balance Sheet

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

Equity and Liabilities

Shareholders Fund 7688139329891,3721,5751,6821,9044,2334,407
Share Capital 21212121212121214253
Reserves 7477939119681,3511,5541,6611,8844,1924,355
Minority Interest0000000000
Debt14076238145138175793618643264
Long Term Debt5560593014770961813594
Short Term Debt851617814113828840509170
Trade Payables45638081126138149135230221
Others Liabilities 2373103874415146158461,0302,0261,721
Total Liabilities 1,1901,2631,6361,6552,1512,5023,4693,6887,1336,613

Fixed Assets

Gross Block4755754074374975801,1771,2061,8771,929
Accumulated Depreciation25833285121149235273381816924
Net Fixed Assets2172433223163483459048251,0621,006
CWIP 1121100352
Investments 447436438434400403399394741740
Inventories00000000811
Trade Receivables151149279288730827798828286375
Cash Equivalents 5710284313557871622,331478
Others Assets3174235675725368691,2811,4762,7014,000
Total Assets 1,1901,2631,6361,6552,1512,5023,4693,6887,1336,613

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 10413129228165288514418-164-108
PBT 1851611741562462973403233,151217
Adjustment 963766263119180216-2,536111
Changes in Working Capital -45-32-17257-108-77104-11-343-280
Tax Paid -45-61-50-48-36-50-110-110-435-157
Cash Flow From Investing Activity -5-60-120-58-58-354-345-461,425378
Capex -60-91-117-84-65-78-60-63-21150
Net Investments 111-173-6-4376-1,3911,407
Others 5520142313-272-323113,026-1,079
Cash Flow From Financing Activity -63-118-36-155-48-6-146-300-583-725
Net Proceeds from Shares 0401221111
Net Proceeds from Borrowing 122100000000
Interest Paid -18-16-15-16-10-10-67-62-167-106
Dividend Paid -63-57-44-19-25-25-57-37-445-109
Others 6-6923-122-1527-24-20127-512
Net Cash Flow 37-47-1271559-722372678-455
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)18.7914.2414.0310.5718.0115.414.14-2.85-2.785.59
ROCE (%)23.419.1117.7414.5519.218.5316.85-2.26-0.574.14
Asset Turnover Ratio0.780.870.950.971.080.80.720.150.230.19
PAT to CFO Conversion(x)0.771.160.242.240.771.272.23N/AN/A-0.45
Working Capital Days
Receivable Days595157659015413956216391
Inventory Days0000000023
Payable Days0000000000

Hinduja Global Solutions Ltd Stock News

Hinduja Global Solutions Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Hinduja Global Soln. on 12-Apr-2024 16:59 is ₹865.5.
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 12-Apr-2024 16:59 the market cap of Hinduja Global Soln. stood at ₹4,026.1.
The latest P/E ratio of Hinduja Global Soln. as of 12-Apr-2024 16:59 is 0.00.
The latest P/B ratio of Hinduja Global Soln. as of 12-Apr-2024 16:59 is 1.31.
The 52-week high of Hinduja Global Soln. is ₹1,174.9 and the 52-week low is ₹720.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Hinduja Global Soln. is ₹1,502 ( Cr.) .

About Hinduja Global Solutions Ltd

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.


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