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Hindusthan National Glass & Industries Ltd Stock Analysis

Small Cap
Evaluated by 202 users | BSE: 515145 | NSE: HINDNATGLS |
Glass
Hindusthan National Glass (HNG) a CK Somany group was founded by  C K Somany, a visionary entrepreneur in 1952 with the inauguration of India’s first fully automatic glass container manufacturing plant at Rishra, near Calcutta (INDIA). The HNG Group was launched under the banner of...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.6%6.38%-0.64%-2.32%-2.96%-0.01%-0.68%-4.02%-2.26%3.09%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,5521,8891,8261,8141,9981,9791,8611,9602,3922,286
Y-o-Y Gr. Rt.-21.7%-3.3%-0.6%10.1%-1%-6%5.3%22%-4.4%
Adjusted EPS (Rs.) 10.7910.94-18.84-29.9-31.83-20.48-21.43-32.34-26.12-10.14
Y-o-Y Gr. Rt.-1.4%-272.2%NANANANANANANA
Book Value per Share (Rs.) 122.71122.01102.5177.5548.5459.8445.216.38-2.41-13.93
Adjusted Net Profit 94.295.5-165-261-278-179-187-290-234-90.8
Net Op. Cash Flow (Rs. Cr.) 30455.161.4338180308166249219-70
Debt to Cash Flow from Ops 2.1137.3743.967.5814.968.4515.4510.1710.94-34.92
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.
Hindusthan National Glass & Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.4%2.7%7.1%-4.4%
Adjusted EPS -199.3%NANANA
Book Value per Share -178.5-177.9-167.60
Share Price -18.3% -15.4% -29.3% 19.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.538.22-15.25-29.56-43.49-34.57-40.8-106.97-373.99124.22
Operating Profit Margin (%) 17.7516.118.7910.4910.7113.8110.355.955.5411.48
Net Profit Margin (%) 6.075.06-9.01-14.39-13.92-9.04-10.06-14.77-9.78-3.97
Debt to Equity 0.61.933.013.786.364.986.517.25-110.98-19.6
Working Capital Days 141156224230196195203199145157
Cash Conversion Cycle 6478111111907982846072
Entity Percentage Holding
Promoters 70.73%
Non-Institutions 29.27%
Pledged *96.5096.5096.5096.5096.5096.5096.5096.5096.5096.50
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Hindusthan National Glass & Industries Ltd's performance infers:

Hindusthan National Glass & Industries Ltd earnings have grown by 0%, whereas share price has depreciated -15.4% 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 Hindusthan National Glass & Industries Ltd share prices over the last 10 years. Here is what we found out:

Hindusthan National Glass & Industries Ltd share price has depreciated -16.4% annually over the past ten years.

Hindusthan National Glass (HNG) a CK Somany group was founded by  C K Somany, a visionary entrepreneur in 1952 with the inauguration of India’s first fully automatic glass container manufacturing plant at Rishra, near Calcutta (INDIA). The HNG Group was launched under the banner of Hindusthan National Glass Manufacturing Co. Ltd., subsequently renamed Hindusthan National Glass & Industries Ltd. (HNGIL).

The company offers premium glass containers for every kind of

Hindusthan National Glass (HNG) a CK Somany group was founded by  C K Somany, a visionary entrepreneur in 1952 with the inauguration of India’s first fully automatic glass container manufacturing plant at Rishra, near Calcutta (INDIA). The HNG Group was launched under the banner of Hindusthan National Glass Manufacturing Co. Ltd., subsequently renamed Hindusthan National Glass & Industries Ltd. (HNGIL).

The company offers premium glass containers for every kind of application. HNGIL is an acknowledged market leader of today and producing 6 million bottles per day ranging from 5 ml to 3200 ml containers for multifarious industries like pharmaceuticals, beverages, processed foods, cosmetics, liquors etc.

Its manufacturing facilities are strategically located at Bahadurgarh near Delhi (since 1964), Rishikesh, Pondicherry and Nashik with state-of-the-art induction furnace for manufacturing of castings in its own foundry. HNGIL has incorporated its technology from the best suppliers in Europe and USA.

HNG Group operates 10 furnaces and 42 production lines with fully automatic IS (Individual Section) machines up to 12 Sections operating on Double and Triple Gob. 

All the plants have a thorough electronic inspection system right from the batch mixing till the final packing. Quality control and R&D Sections are well equipped with sophisticated instruments enabling production of international quality glassware.

Well-equipped workshop to manufacture moulds for bottles of all designs & shapes, backed up by own power generating plants.

The far-sighted and dynamic approach of C K Somany, the highly focused management strategies and the leadership qualities of his sons Sanjay Somany and Mukul Somany have turned every challenge into a winning formula.

As a result of which, in the 5 ml-3200 ml segment, HNG Group is the undisputed market leader catering to around 70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry majors like, CocaCola, Dabur, GlaxoWellcome, Nestle, Pepsi, Reckitt Benckiser (India) Ltd., Smithkline Beecham, UB Group etc. Exports to South East, Middle East, Africa and First World Countries in Europe & North America.

HNGIL has a wide and diversified customer base to its credit. Its clientele includes leading companies like :

Pepsi Co., Coca-Cola, Cadbury’s, Nestle ,Raun Pollack, Dabur, Bayer, Lakme, Glaxo, Pfizer, Reckitt & Coleman, Shaw Wallace, UB group

Product range of the company includes:

Premium glass containers like glass bottles/vials, for use in beverages industry, cosmetics, pharmaceuticals, liquor and processed food industry.

Other companies under the HNG wing are Glass Equipment (India) Ltd. (GEIL), Ceramic Decorators Ltd. (CDL), Somany Foam Limited (SFL) and Quality Minerals Ltd. (QML). Besides, there are number of Investment Companies, Partnership Firms and Charitable Trusts which are also part of the HNG Group.

  • Glass Equipment ( India) Limited- GEIL's state-of-the-art technology accounts for manufacture of sophisticated equipment for glass plants. It is also expert in manufacturing of critical spares for Glass container manufacturing industries and provides solutions in setting up glass plants on a turnkey basis.
  • Ceramic Decorators Limited- CDL provides decorative printing on bottles with the latest machines and Lehrs.
  • Somany Foam Limited- Project being set up at BHEL Industrial Area, Haridwar to manufacture all types of FOAM with an Capital outlay of Rs.36 Crores.
  • HNG Float Glass Limited- HNG group is planning to come up with an integrated 600 TPD Float Glass Project in the State of Gujarat at a capital outlay of Rs.550 crores. The commercial production for architectural processing and building glass will start by 1st quarter of 2008-09.

 

In order to keep pace with changing technology and demands, the Group has acquired the Glass Division of L & T at Nashik in October 2005, having one furnace of 320 TPD melting capacity.

HNGIL has also entered into a scheme of amalgamation with Ace Glass Containers (ACE)

Milestones:

  • 1946     Incorporation of HNG in Rishra (near Kolkata) on the 23rd days of  February
  • 1952     Commissioning of India's first fully automated glass manufacturing plant  with an installed capacity of 30 TPD
  • 2001     Installed capacity was raised to 1100 TPD Certified with ISO 9001:2000
  • 2002     Production strength was raised to 1800 TPD with the acquisition of Owens Brockway (India) Ltd.
  • 2003     Unveiling of TPM with an objective to improve the draw-to-pack efficiency  by nearly 300 basis points
  • 2005     Acquisition of Larsen & Toubro Plant (Nashik) led to the escalation of   installed capacity to 2150 TPD
  • 2006     Debottlenecking further raised the installed capacity of HNG to 2435 TPD
  • 2007     Lean Six Sigma was launched to reduce non-value added time (between   production completion and revenue generation)
  • 2007     Acquisition of Neemrana Plant through the merger of Haryana Sheet   GlassInstalled capacity increased to 2540 TPD
  • 2008    ERP was introduced to facilitate timely decision making, superior   inventories management and eliminate data redundancies
  • 2008     Received ISO 22000 certification
  • 2009     Developed CAD/CAM facilities to design a variety of bottles in different  sizes, customized to the precise requirements of pharmaceuticals,  processed foods, liquor and soft drink industries
  • 2009     Implementation of SAP
  • 2010     Installed capacity increased to 2825 TPD through Brownfield expansions
  • 2010     Singed largest deals in the Indian Glass Industry worth Rs 2.5 billion
  • 2013     Installed capacity increased to 4395 TPD with the introduction of SNR and NDP plant of 650 TPD capacities each.

Awards /achievements

HNG has been ranked at No.307 amongst the Top 1000 companies, published in the latest edition of Business Standard for March'09.

HNGIL is to be awarded as the best company in “Glass & Ceramics” category by Dun & Bradstreet.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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