BSE:523398

Stock Analysis Report

Johnson Controls-Hitachi Air Conditioning India

Executive Summary

Johnson Controls-Hitachi Air Conditioning India Limited manufactures, markets, and trades in air conditioners, refrigerators, washing machines, air purifiers, chillers, and variable refrigerant flow systems in India.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has Johnson Controls-Hitachi Air Conditioning India's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.1%

523398

1.5%

IN Consumer Durables

1.6%

IN Market


1 Year Return

20.8%

523398

10.9%

IN Consumer Durables

0.8%

IN Market

Return vs Industry: 523398 exceeded the Indian Consumer Durables industry which returned 10.9% over the past year.

Return vs Market: 523398 exceeded the Indian Market which returned 0.8% over the past year.


Shareholder returns

523398IndustryMarket
7 Day4.1%1.5%1.6%
30 Day14.5%9.1%1.5%
90 Day20.0%9.1%-3.3%
1 Year21.0%20.8%11.4%10.9%2.7%0.8%
3 Year28.9%28.6%34.1%32.1%22.0%16.0%
5 Year223.5%222.0%134.5%128.0%42.3%29.3%

Price Volatility Vs. Market

How volatile is Johnson Controls-Hitachi Air Conditioning India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Johnson Controls-Hitachi Air Conditioning India undervalued compared to its fair value and its price relative to the market?

53.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 523398 (₹1957.35) is trading above our estimate of fair value (₹357.52)

Significantly Undervalued: 523398 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 523398 is poor value based on its PE Ratio (53.9x) compared to the Consumer Durables industry average (22.6x).

PE vs Market: 523398 is poor value based on its PE Ratio (53.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: 523398 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 523398 is overvalued based on its PB Ratio (8.7x) compared to the IN Consumer Durables industry average (1.3x).


Next Steps

  • Explore potentially undervalued companies in the Consumer Durables industry.

Future Growth

How is Johnson Controls-Hitachi Air Conditioning India forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 523398's forecast earnings growth (22.5% per year) is above the savings rate (7.6%).

Earnings vs Market: 523398's earnings (22.5% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 523398's revenue (12.5% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 523398's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 523398's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Johnson Controls-Hitachi Air Conditioning India performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 523398's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: 523398's earnings growth over the past year (10.7%) is below its 5-year average (11.2% per year).

Earnings vs Industry: 523398 earnings growth over the past year (10.7%) exceeded the Consumer Durables industry 5.2%.


Return on Equity

High ROE: 523398's Return on Equity (16.1%) is considered low.


Return on Assets

ROA vs Industry: 523398's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: 523398's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Johnson Controls-Hitachi Air Conditioning India's financial position?


Financial Position Analysis

Short Term Liabilities: 523398's short term assets (₹11.8B) exceeds its short term liabilities (₹8.9B)

Long Term Liabilities: 523398's short term assets (11.8B) exceeds its long term liabilities (623.4M)


Debt to Equity History and Analysis

Debt Level: 523398's debt to equity ratio (30.9%) is considered satisfactory

Reducing Debt: 523398's debt to equity ratio has reduced from 51.5% to 30.9% over the past 5 years.

Debt Coverage: 523398's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 523398 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 523398 has a high level of physical assets or inventory.

Debt Coverage by Assets: 523398's debt is covered by short term assets (assets are 6.246070x debt).


Next Steps

Dividend

What is Johnson Controls-Hitachi Air Conditioning India's current dividend yield, its reliability and sustainability?

0.077%

Current Dividend Yield


Dividend Yield vs Market

company0.08%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 523398's dividend (0.077%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 523398's dividend (0.077%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

Stable Dividend: 523398 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 523398 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: 523398 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 523398'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 Johnson Controls-Hitachi Air Conditioning India's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Gurmeet Singh (54yo)

2.7yrs

Tenure

₹18,500,000

Compensation

Mr. Gurmeet Singh has been Chairman of Johnson Controls-Hitachi Air Conditioning India Limited (Formerly known as Hitachi Home and Life Solutions (India) Limited) since January 30, 2018 and has been its Ma ...


CEO Compensation Analysis

Compensation vs. Market: Gurmeet's total compensation ($USD260.81K) is about average for companies of similar size in the Indian market ($USD367.95K).

Compensation vs Earnings: Gurmeet's compensation has increased by more than 20% in the past year.


Board Age and Tenure

3.3yrs

Average Tenure

64yo

Average Age

Experienced Board: 523398's board of directors are considered experienced (3.3 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.


Ownership Breakdown


Management Team

  • Parag Dave

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹2.33m
  • Masahiko Watanabe (50yo)

    Assistant Vice President

    • Tenure: 0yrs
  • Gurmeet Singh (54yo)

    Chairman & MD

    • Tenure: 2.7yrs
    • Compensation: ₹18.50m
  • Sanjay Kumar (49yo)

    BR Head & VP of Human Resources

    • Tenure: 0yrs
  • Sanjeev Agarwal (56yo)

    Director of Sales

    • Tenure: 0yrs
  • Ichio Iwai (57yo)

    Assistant Vice President

    • Tenure: 0yrs
  • Rishi Mehta (40yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: ₹8.21m
  • Naoji Anjiki (61yo)

    Senior Vice President

    • Tenure: 0yrs
  • Vikas Verma (49yo)

    Senior Vice President

    • Tenure: 0yrs
  • G. Jitendhar (55yo)

    Senior Vice President

    • Tenure: 0yrs

Board Members

  • Ashok Balwani (68yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: ₹800.00k
  • Mukesh Patel (65yo)

    Independent Non-Executive Director

    • Tenure: 16.6yrs
    • Compensation: ₹800.00k
  • Shinichi Iizuka (63yo)

    Additional Director

    • Tenure: 0.4yrs
  • Gurmeet Singh (54yo)

    Chairman & MD

    • Tenure: 2.7yrs
    • Compensation: ₹18.50m
  • Indira Parikh

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: ₹800.00k
  • Yoshikazu Ishihara

    Non-Executive Director

    • Tenure: 1.8yrs

Company Information

Johnson Controls-Hitachi Air Conditioning India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Johnson Controls-Hitachi Air Conditioning India Limited
  • Ticker: 523398
  • Exchange: BSE
  • Founded: 1984
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: ₹52.765b
  • Shares outstanding: 27.19m
  • Website: https://www.hitachiaircon.in

Number of Employees


Location

  • Johnson Controls-Hitachi Air Conditioning India Limited
  • Hitachi Complex
  • Karan Nagar
  • Kadi
  • Gujarat
  • 382727
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523398BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1996
JCHACNSEI (National Stock Exchange of India)YesEquity SharesININROct 1996

Biography

Johnson Controls-Hitachi Air Conditioning India Limited manufactures, markets, and trades in air conditioners, refrigerators, washing machines, air purifiers, chillers, and variable refrigerant flow system ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:35
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.