BSE:500500

Stock Analysis Report

Executive Summary

Hindustan Motors Limited manufactures and sells vehicles and related spare parts, and steel products and components in India.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Hindustan Motors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500500's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

36.5%

500500

-3.5%

IN Auto

-1.1%

IN Market


1 Year Return

-44.5%

500500

-45.3%

IN Auto

-31.7%

IN Market

Return vs Industry: 500500 matched the Indian Auto industry which returned -45.5% over the past year.

Return vs Market: 500500 underperformed the Indian Market which returned -32.1% over the past year.


Shareholder returns

500500IndustryMarket
7 Day36.5%-3.5%-1.1%
30 Day-10.2%-34.3%-25.1%
90 Day-23.7%-43.1%-30.6%
1 Year-44.5%-44.5%-44.1%-45.3%-30.3%-31.7%
3 Year-58.2%-58.2%-50.6%-52.4%-20.1%-24.4%
5 Year-42.8%-42.8%-38.4%-41.3%-11.0%-15.7%

Price Volatility Vs. Market

How volatile is Hindustan Motors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hindustan Motors undervalued compared to its fair value and its price relative to the market?

3.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 500500's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 500500's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 500500 is good value based on its PE Ratio (3.7x) compared to the Auto industry average (12.8x).

PE vs Market: 500500 is good value based on its PE Ratio (3.7x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500500's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500500 has negative assets, so we can't compare its PB Ratio to the IN Auto industry average.


Next Steps

Future Growth

How is Hindustan Motors forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hindustan Motors has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hindustan Motors performed over the past 5 years?

57.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500500 has a large one-off gain of ₹332.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 500500 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 500500 has become profitable over the past 5 years, growing earnings by 57.9% per year.

Accelerating Growth: 500500 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 500500 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto industry (0%).


Return on Equity

High ROE: 500500's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Hindustan Motors's financial position?


Financial Position Analysis

Short Term Liabilities: 500500 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 500500 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 500500 is debt free.

Reducing Debt: 500500's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: 500500 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 500500 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Hindustan Motors's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500500's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500500's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500500's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500500's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500500's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Bhikam Mishra

1.92s

Tenure

₹3,193,837

Compensation

Mr. Bhikam Chand Mishra is the Chief Executive Officer of Hindustan Motors Ltd., since May 26, 2018 and served as its Chief Financial Officer since November 11, 2014 until May 25, 2018. Mr. Mishra holds a  ...


CEO Compensation Analysis

Compensation vs Market: Bhikam's total compensation ($USD41.86K) is about average for companies of similar size in the Indian market ($USD47.77K).

Compensation vs Earnings: Bhikam's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bhikam Mishra
Chief Executive Officer1.92yrs₹3.19mno data
Mahesh Kejriwal
Chief Financial Officer1.92yrs₹846.93kno data
Prativa Sharma
Compliance Officer & Company Secretary2.58yrs₹389.25kno data
T. Vardhan
Executive Vice President of Corporate Finance and Director of Hm Export Limitedno data₹2.21mno data
Shanti Singhi
President of Adminno datano datano data
B. Khargonkar
Executive Vice President of Power Unit Plantno data₹3.37mno data
P. Vijayan
Chief Operating Officer of Chennai Car Plantno data₹2.60mno data

1.9yrs

Average Tenure

66yo

Average Age

Experienced Management: 500500's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
T. Vardhan
Executive Vice President of Corporate Finance and Director of Hm Export Limitedno data₹2.21mno data
Shanti Singhi
President of Adminno datano datano data
A. Sankaranarayanan
Non-Independent & Non-Executive Director23.25yrs₹110.00k0.00062% 5.3k
Uttam Bose
Non-Independent & Non-Executive Director5.58yrs₹70.00kno data
Raj Johri
Independent & Non-Executive Director6.17yrs₹120.00kno data
Mou Mukherjee
Independent & Non-Executive Director5.08yrs₹110.00kno data

5.9yrs

Average Tenure

71yo

Average Age

Experienced Board: 500500's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Hindustan Motors Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hindustan Motors Limited
  • Ticker: 500500
  • Exchange: BSE
  • Founded: 1942
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹849.243m
  • Shares outstanding: 208.66m
  • Website: https://www.hindmotor.com

Number of Employees


Location

  • Hindustan Motors Limited
  • Birla Building
  • 13th Floor
  • Kolkata
  • West Bengal
  • 700001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500500BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1995
HINDMOTORSNSEI (National Stock Exchange of India)YesEquity SharesININRApr 1995

Biography

Hindustan Motors Limited manufactures and sells vehicles and related spare parts, and steel products and components in India. The company offers passenger cars under the Ambassador name; and light commercial vehicles under the Winner name. It also provides grey iron, SG iron, steel, and aluminum pressure die castings for passenger cars, LCVs, HCV, and tractor segments; and intricate castings, such as 3-cylinder and 4-cylinder blocks, heads, gear box housings, manifolds, SG iron casings, covers, wheel hubs, aluminum gear box extensions, steering arms, etc. In addition, the company offers profile forgings for passenger car, LCV, HCV, and tractor segments; and intricate forgings, such as 2-cylinder, 3-cylinder, and 4-cylinder crankshafts, as well as camshafts, stub axles, spindles, draw hooks, and various types of gears and shafts. Further, it is involved in the trading of spare parts of vehicles. The company was incorporated in 1942 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 12:47
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.