NSEI:HIRECT

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

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: HIRECT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

HIRECT

4.2%

IN Electrical

1.4%

IN Market


1 Year Return

-24.3%

HIRECT

-16.6%

IN Electrical

2.8%

IN Market

Return vs Industry: HIRECT underperformed the Indian Electrical industry which returned -16.6% over the past year.

Return vs Market: HIRECT underperformed the Indian Market which returned 2.8% over the past year.


Shareholder returns

HIRECTIndustryMarket
7 Day2.6%4.2%1.4%
30 Day2.2%5.9%8.0%
90 Day5.1%5.4%7.8%
1 Year-23.8%-24.3%-14.4%-16.6%4.5%2.8%
3 Year13.2%12.1%-26.1%-29.9%-0.5%-5.3%
5 Year57.8%51.5%-13.3%-18.6%41.5%31.0%

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

Valuation

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

15.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HIRECT (₹124.75) is trading above our estimate of fair value (₹6.18)

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


Price To Earnings Ratio

PE vs Industry: HIRECT is good value based on its PE Ratio (15.1x) compared to the IN Electrical industry average (15.4x).

PE vs Market: HIRECT is good value based on its PE Ratio (15.1x) compared to the Indian market (16.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HIRECT is overvalued based on its PB Ratio (2.2x) compared to the IN Electrical industry average (0.7x).


Next Steps

Future Growth

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

28.5%

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 Hind Rectifiers 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 Hind Rectifiers performed over the past 5 years?

63.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIRECT has high quality earnings.

Growing Profit Margin: HIRECT's current net profit margins (4.9%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: HIRECT has become profitable over the past 5 years, growing earnings by 63.9% per year.

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

Earnings vs Industry: HIRECT had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Electrical industry average (-13.5%).


Return on Equity

High ROE: HIRECT's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Hind Rectifiers's financial position?


Financial Position Analysis

Short Term Liabilities: HIRECT's short term assets (₹1.8B) exceed its short term liabilities (₹1.3B).

Long Term Liabilities: HIRECT's short term assets (₹1.8B) exceed its long term liabilities (₹194.6M).


Debt to Equity History and Analysis

Debt Level: HIRECT's debt to equity ratio (93.9%) is considered high.

Reducing Debt: HIRECT's debt to equity ratio has increased from 40.7% to 93.9% over the past 5 years.

Debt Coverage: HIRECT's debt is not well covered by operating cash flow (4.9%).

Interest Coverage: HIRECT's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HIRECT's dividend (0.64%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: HIRECT's dividend (0.64%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).


Stability and Growth of Payments

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

Growing Dividend: HIRECT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.7%), HIRECT's dividend payments are thoroughly 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?

4.0yrs

Average management tenure


CEO

Sh. Nevatia

2.33yrs

Tenure

₹7,365,000

Compensation

Mr. Sh. Suramya Nevatia serves as the Additional Director of Hind Rectifiers Limited since August 17, 2020. Mr. Nevatia He has been Chief Executive Officer at Hind Rectifiers Ltd. and has been its Managing ...


CEO Compensation Analysis

Compensation vs Market: Sh.'s total compensation ($USD99.77K) is above average for companies of similar size in the Indian market ($USD54.90K).

Compensation vs Earnings: Sh.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sh. Nevatia
MD, CEO & Additional Director2.33yrs₹7.37mno data
A. Nemani
Chief Financial Officer4.17yrs₹3.19mno data
Meenakshi Anchlia
Company Secretary & Compliance Officer4.67yrs₹959.00kno data
Akshada Nevatia
Executive Director3.75yrs₹6.25m0.035%
₹ 728.4k
Saurabh Nevatia
Chief Executive Officer of Nasik Plantno datano data21.85%
₹ 450.7m

4.0yrs

Average Tenure

Experienced Management: HIRECT's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sh. Nevatia
MD, CEO & Additional Director2.33yrs₹7.37mno data
Akshada Nevatia
Executive Director3.75yrs₹6.25m0.035%
₹ 728.4k
Pradeep Goyal
Independent Non-Executive Director12.58yrs₹172.00kno data
Vijay Bhartia
Independent Non-Executive Director13.5yrs₹247.00kno data
Binod Patodia
Independent Non-Executive Director13.5yrs₹88.00kno data
Pawan Golyan
Non-Independent Non-Executive Directorno data₹33.00kno data
Parimal Merchant
Independent Non-Executive Director7.67yrs₹150.00kno data
Vandan Shah
Non-Independent & Non-Executive Director3.75yrs₹58.00k0.31%
₹ 6.3m
Ashlesha Bodas
Independent Non-Executive Additional Director0.33yrno datano data

5.7yrs

Average Tenure

63yo

Average Age

Experienced Board: HIRECT's board of directors are considered experienced (5.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Hind Rectifiers Limited
  • Ticker: HIRECT
  • Exchange: NSEI
  • Founded: 1958
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: ₹2.062b
  • 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 Analysis2020/10/25 12:33
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.