BSE:505720

Stock Analysis Report

Executive Summary

Hercules Hoists Limited manufactures and sells material handling equipment primarily in India.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Hercules Hoists's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 505720's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

505720

5.7%

IN Machinery

9.3%

IN Market


1 Year Return

-56.4%

505720

-39.6%

IN Machinery

-29.6%

IN Market

Return vs Industry: 505720 underperformed the Indian Machinery industry which returned -39.8% over the past year.

Return vs Market: 505720 underperformed the Indian Market which returned -30.6% over the past year.


Shareholder returns

505720IndustryMarket
7 Day2.5%5.7%9.3%
30 Day-31.5%-27.6%-23.3%
90 Day-50.1%-30.7%-28.0%
1 Year-55.6%-56.4%-38.5%-39.6%-28.2%-29.6%
3 Year-67.5%-68.6%-35.9%-38.6%-15.8%-20.5%
5 Year-70.7%-72.2%-23.4%-28.1%-4.7%-9.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Hercules Hoists undervalued compared to its fair value and its price relative to the market?

16.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 505720 (₹50.45) is trading above our estimate of fair value (₹32.19)

Significantly Below Fair Value: 505720 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 505720 is poor value based on its PE Ratio (16.4x) compared to the Machinery industry average (10x).

PE vs Market: 505720 is poor value based on its PE Ratio (16.4x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 505720's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 505720 is good value based on its PB Ratio (0.4x) compared to the IN Machinery industry average (0.8x).


Next Steps

Future Growth

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

16.2%

Forecasted Capital Goods 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 Hercules Hoists 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 Hercules Hoists performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 505720 has a large one-off gain of ₹35.0M impacting its December 31 2019 financial results.

Growing Profit Margin: 505720's current net profit margins (11.5%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: 505720's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: 505720's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 505720 had negative earnings growth (-25.1%) over the past year, making it difficult to compare to the Machinery industry average (-6.2%).


Return on Equity

High ROE: 505720's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Hercules Hoists's financial position?


Financial Position Analysis

Short Term Liabilities: 505720's short term assets (₹1.1B) exceed its short term liabilities (₹108.9M).

Long Term Liabilities: 505720's short term assets (₹1.1B) exceed its long term liabilities (₹94.7M).


Debt to Equity History and Analysis

Debt Level: 505720 is debt free.

Reducing Debt: 505720 has no debt compared to 5 years ago when its debt to equity ratio was 0%.

Debt Coverage: 505720 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 505720 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 505720 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 505720's debt is covered by short term assets.


Next Steps

Dividend

What is Hercules Hoists's current dividend yield, its reliability and sustainability?

2.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 505720's dividend (2.97%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 505720's dividend (2.97%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

Stable Dividend: 505720's dividend payments have been volatile in the past 10 years.

Growing Dividend: 505720's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.7%), 505720's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Prakash Subramaniam (59yo)

7s

Tenure

Mr. Prakash Subramaniam has been the Chief Executive Officer and President at Hercules Hoists Limited since April 01, 2013. Mr. Subramaniam served as Joint President at Hercules Hoists Limited. 


Leadership Team

NamePositionTenureCompensationOwnership
Hariprasad Nevatia
Whole Time Director18.42yrs₹332.00k0.0050% 80.7k
Prakash Subramaniam
President & CEO7yrsno datano data
Vijay Singh
Chief Financial Officer5.92yrsno datano data
Vivek Mahendru
Vice President of Operationsno datano datano data
Kiran Mukadam
Compliance Officer & Company Secretary0.92yrno datano data
Debi Padhy
General Manager of Sales & Marketingno datano datano data

5.9yrs

Average Tenure

Experienced Management: 505720's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hariprasad Nevatia
Whole Time Director18.42yrs₹332.00k0.0050% 80.7k
Shekharkumar Bajaj
Chairmanno data₹170.00k11.69% 188.6m
Gaurav Nevatia
Non-Executive & Independent Director13.5yrs₹290.00kno data
Niravnayan Bajaj
Additional Director0.83yrno datano data
Shruti Jatia
Additional Non Executive & Independent Director5.42yrs₹90.00kno data
Vandan Shah
Independent Director4.17yrs₹170.00k0.16% 2.6m

5.4yrs

Average Tenure

52yo

Average Age

Experienced Board: 505720's board of directors are considered experienced (5.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hercules Hoists Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hercules Hoists Limited
  • Ticker: 505720
  • Exchange: BSE
  • Founded: 1962
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹1.614b
  • Shares outstanding: 32.00m
  • Website: https://www.indef.com

Number of Employees


Location

  • Hercules Hoists Limited
  • Shelton Cubix, 501-504
  • Plot No. 87
  • Navi Mumbai
  • Maharashtra
  • 400614
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505720BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1998
HERCULESNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1998

Biography

Hercules Hoists Limited manufactures and sells material handling equipment primarily in India. It operates through two segments, Material Handling Equipment and Windmill Power. The company offers chain pulley blocks, ratchet lever hoists, pulling – lifting machines, and pull push or geared trolleys; and electrical solutions, such as electrical chain and wire rope hoists, hand operated, overhead travelling cranes, and electrical overhead travelling cranes, jib cranes, floor operated stackers for storage and retrieval, manipulators, and others. Its products are used in cargo terminals and ports, automotive, cement and construction, chemicals, energy and power, engineering and machine, building, food processing, logistics, mining metallurgy and metal processing, nuclear, oil and gas, petrochemicals, paper, rubber and plastics, and wood processing industries. The company distributes its products under the Indef, Stier, iCrane, and IStacker brands. It also generates power through four wind farms. Hercules Hoists Limited was founded in 1962 and is based in Navi Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 12:39
End of Day Share Price2020/04/01 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.