BSE:504036

Stock Analysis Report

Executive Summary

Hind Rectifiers Limited develops, designs, manufactures, and markets semi-conductor devices, power electronic equipment, and railway transportation equipment in India and internationally.

Snowflake

Outstanding track record with mediocre balance sheet.

Rewards

Revenue is forecast to grow by 1.91% next year

Earnings grew by 176.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -2.2% per year for the next 3 years

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹4B)


Share Price & News

How has Hind Rectifiers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 504036's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.8%

504036

0.4%

IN Electrical

-1.2%

IN Market


1 Year Return

79.8%

504036

-21.8%

IN Electrical

4.0%

IN Market

Return vs Industry: 504036 exceeded the Indian Electrical industry which returned -21.8% over the past year.

Return vs Market: 504036 exceeded the Indian Market which returned 4% over the past year.


Shareholder returns

504036IndustryMarket
7 Day15.8%0.4%-1.2%
30 Day31.5%9.9%4.8%
90 Day68.7%8.9%7.5%
1 Year80.5%79.8%-19.6%-21.8%6.1%4.0%
3 Year164.4%155.4%12.5%8.7%34.2%27.3%
5 Year184.1%174.3%-7.5%-12.4%37.4%24.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Hind Rectifiers undervalued compared to its fair value and its price relative to the market?

17.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 504036 (₹215.9) is trading above our estimate of fair value (₹3.41)

Significantly Below Fair Value: 504036 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 504036 is poor value based on its PE Ratio (17.2x) compared to the Electrical industry average (14.3x).

PE vs Market: 504036 is poor value based on its PE Ratio (17.2x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: 504036's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 504036 is overvalued based on its PB Ratio (4x) compared to the IN Electrical industry average (0.8x).


Next Steps

Future Growth

How is Hind Rectifiers forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 504036's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: 504036's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: 504036's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 504036's revenue (6.3% per year) is forecast to grow slower than the Indian market (11.2% per year).

High Growth Revenue: 504036's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 504036's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hind Rectifiers performed over the past 5 years?

62.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 504036 has high quality earnings.

Growing Profit Margin: 504036's current net profit margins (6.9%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: 504036 has become profitable over the past 5 years, growing earnings by 62.9% per year.

Accelerating Growth: 504036's earnings growth over the past year (176.7%) exceeds its 5-year average (62.9% per year).

Earnings vs Industry: 504036 earnings growth over the past year (176.7%) exceeded the Electrical industry 16.9%.


Return on Equity

High ROE: 504036's Return on Equity (23.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hind Rectifiers's financial position?


Financial Position Analysis

Short Term Liabilities: 504036's short term assets (₹1.7B) exceeds its short term liabilities (₹1.1B)

Long Term Liabilities: 504036's short term assets (1.7B) exceeds its long term liabilities (186.0M)


Debt to Equity History and Analysis

Debt Level: 504036's debt to equity ratio (77%) is considered high

Reducing Debt: 504036's debt to equity ratio has increased from 22.4% to 77% over the past 5 years.

Debt Coverage: 504036's debt is not well covered by operating cash flow (4.7%).

Interest Coverage: 504036's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: 504036 has a high level of physical assets or inventory.

Debt Coverage by Assets: 504036's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Hind Rectifiers's current dividend yield, its reliability and sustainability?

0.19%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.4%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 504036's dividend (0.19%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: 504036's dividend (0.19%) is low compared to the top 25% of dividend payers in the Indian market (2.4%).


Stability and Growth of Payments

Stable Dividend: 504036 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 504036 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 504036 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 504036's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Hind Rectifiers's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Sh. Nevatia 0

1.4yrs

Tenure

₹2,386,000

Compensation

Mr. Sh. Suramya Nevatia has been Chief Executive Officer at Hind Rectifiers Ltd. Mr. Sh. Suramya Nevatia has done graduation from H. R. College of Commerce & Economics, Mumbai in 2009 and MSC in Marketing  ...


CEO Compensation Analysis

Compensation vs Market: Sh.'s total compensation ($USD33.07K) is about average for companies of similar size in the Indian market ($USD33.44K).

Compensation vs Earnings: Insufficient data to compare Sh.'s compensation with company performance.


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: 504036's management team is considered experienced (3 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

63yo

Average Age

Experienced Board: 504036's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹121,03120 Mar 19
Shailesh Mehta
EntityIndividual
Shares1,002
Max Price₹120.79
Buy₹345,61004 Mar 19
Sushil Kumar Nevatia
EntityIndividual
Role
Chairman of the Board
Chairman & MD
Shares3,000
Max Price₹115.20
Buy₹1,550,31217 Jan 19
Raj Mittal
EntityIndividual
Shares12,500
Max Price₹124.02
Buy₹271,06107 Jan 19
Suramya Nevatia
EntityIndividual
Shares2,577
Max Price₹105.18
Buy₹118,22118 Dec 18
Suramya Nevatia
EntityIndividual
Shares1,078
Max Price₹109.67
Buy₹693,01508 Dec 18
Suramya Nevatia
EntityIndividual
Shares6,345
Max Price₹109.22

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sushil Kumar Nevatia (86yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹14.51m
  • Saurabh Nevatia

    Chief Executive Officer of Nasik Plant

    • Tenure: 0yrs
  • A. Nemani

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: ₹2.79m
  • Meenakshi Anchlia

    Company Secretary & Compliance Officer

    • Tenure: 3.8yrs
    • Compensation: ₹840.00k
  • Akshada Nevatia (31yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹2.91m
  • Sh. Nevatia

    Chief Executive Officer

    • Tenure: 1.4yrs
    • Compensation: ₹2.39m

Board Members

  • Pradeep Goyal (64yo)

    Independent Non-Executive Director

    • Tenure: 11.7yrs
    • Compensation: ₹42.00k
  • Vijay Bhartia (78yo)

    Independent Non-Executive Director

    • Tenure: 12.6yrs
    • Compensation: ₹65.00k
  • Binod Patodia (74yo)

    Independent Non-Executive Director

    • Tenure: 12.6yrs
    • Compensation: ₹5.00k
  • Sushil Kumar Nevatia (86yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹14.51m
  • Pawan Golyan (62yo)

    Non-Independent Non-Executive Director

    • Tenure: 0yrs
  • Parimal Merchant (59yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: ₹48.00k
  • Vandan Shah (56yo)

    Additional Non-Executive & Non-Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹30.00k
  • Akshada Nevatia (31yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹2.91m

Company Information

Hind Rectifiers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hind Rectifiers Limited
  • Ticker: 504036
  • Exchange: BSE
  • Founded: 1958
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: ₹3.507b
  • Shares outstanding: 16.56m
  • Website: https://www.hirect.com

Number of Employees


Location

  • Hind Rectifiers Limited
  • Lake Road
  • Bhandup (West)
  • Mumbai
  • Maharashtra
  • 400078
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
504036BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005
HIRECTNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2005

Biography

Hind Rectifiers Limited develops, designs, manufactures, and markets semi-conductor devices, power electronic equipment, and railway transportation equipment in India and internationally. It offers power s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 12:33
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
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.