Hindware Home Innovation Valuation

Q: What is the Fair Price of 542905 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

542905 (₹254.05) is trading above our estimate of [[fair value]] (₹203.49)

Is 542905 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 542905 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 542905 (₹254.05) is trading above our estimate of fair value (₹203.49)

Significantly Below Fair Value: 542905 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 542905?

Key metric: As 542905 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 542905. This is calculated by dividing 542905's market cap by their current revenue.
What is 542905's PS Ratio?
PS Ratio	0.7x
Sales	₹27.53b
Market Cap	₹18.37b

542905 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	16.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 542905's PS Ratio compare to its peers?

The above table shows the PS ratio for 542905 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	8.2x
540980 Yamuna Syndicate	23.5x	n/a	₹14.6b
CREATIVE Creative Newtech	0.8x	n/a	₹12.7b
512229 Veritas (India)	0.6x	n/a	₹24.7b
541276 Hardwyn India	8x	n/a	₹12.6b
542905 Hindware Home Innovation	0.7x	11.4%	₹18.4b

Price-To-Sales vs Peers: 542905 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (8.2x).

Price to Sales Ratio vs Industry

How does 542905's PS Ratio compare vs other companies in the IN Trade Distributors Industry?

37 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.7x	3.2%
542905 Hindware Home Innovation	0.7x	11.4%	US$217.52m
512229 Veritas (India)	0.6x	n/a	US$292.46m
HINDWAREAP Hindware Home Innovation	0.7x	11.4%	US$217.52m

37 Companies		Estimated Growth	Market Cap
Industry Avg.	1.7x	7.0%
542905 Hindware Home Innovation	0.7x	80.8%	US$217.52m

No more companies

Price-To-Sales vs Industry: 542905 is good value based on its Price-To-Sales Ratio (0.7x) compared to the Indian Trade Distributors industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is 542905's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

542905 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	2.5x

Price-To-Sales vs Fair Ratio: 542905 is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (2.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 542905 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	₹254.05	₹396.67 +56.1%	20.2%	₹493.00	₹297.00	n/a	3
Nov ’25	₹305.70	₹483.67 +58.2%	3.8%	₹500.00	₹458.00	n/a	3
Oct ’25	₹321.35	₹489.33 +52.3%	4.6%	₹510.00	₹458.00	n/a	3
Sep ’25	₹369.95	₹489.33 +32.3%	4.6%	₹510.00	₹458.00	n/a	3
Aug ’25	₹440.60	₹522.33 +18.6%	11.3%	₹600.00	₹457.00	n/a	3
Jul ’25	₹447.00	₹530.67 +18.7%	11.0%	₹600.00	₹457.00	n/a	3
Jun ’25	₹356.20	₹530.67 +49.0%	11.0%	₹600.00	₹457.00	n/a	3
May ’25	₹363.35	₹546.00 +50.3%	7.4%	₹600.00	₹503.00	n/a	3
Apr ’25	₹400.70	₹575.33 +43.6%	9.0%	₹623.00	₹503.00	n/a	3
Mar ’25	₹399.65	₹611.50 +53.0%	1.9%	₹623.00	₹600.00	n/a	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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