NSEI:JCHAC

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.

Rewards

Earnings are forecast to grow 19.03% per year

Earnings have grown 9.5% per year over the past 5 years

Risk Analysis

High level of non-cash earnings



Snowflake Analysis

Flawless balance sheet with limited growth.

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

Stable Share Price: JCHAC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

JCHAC

1.5%

IN Consumer Durables

-1.3%

IN Market


1 Year Return

13.5%

JCHAC

16.2%

IN Consumer Durables

5.2%

IN Market

Return vs Industry: JCHAC underperformed the Indian Consumer Durables industry which returned 16.2% over the past year.

Return vs Market: JCHAC exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

JCHACIndustryMarket
7 Day1.3%1.5%-1.3%
30 Day1.3%0.4%-0.2%
90 Day25.4%14.0%7.6%
1 Year13.6%13.5%16.8%16.2%7.2%5.2%
3 Year40.4%40.0%38.7%36.9%30.3%23.4%
5 Year137.5%136.4%101.6%96.5%39.3%26.8%

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?

56.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JCHAC (₹2014.9) is trading above our estimate of fair value (₹211.27)

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


Price To Earnings Ratio

PE vs Industry: JCHAC is poor value based on its PE Ratio (56.2x) compared to the Consumer Durables industry average (17.8x).

PE vs Market: JCHAC is poor value based on its PE Ratio (56.2x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: JCHAC is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: JCHAC is overvalued based on its PB Ratio (6.4x) compared to the IN Consumer Durables industry average (1.4x).


Next Steps

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?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JCHAC's forecast earnings growth (19% per year) is above the savings rate (6.5%).

Earnings vs Market: JCHAC's earnings (19% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: JCHAC's earnings are forecast to grow, but not significantly.

Revenue vs Market: JCHAC's revenue (12.2% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: JCHAC's revenue (12.2% 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 JCHAC'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?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JCHAC has a high level of non-cash earnings.

Growing Profit Margin: JCHAC's current net profit margins (4%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: JCHAC's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: JCHAC's earnings growth over the past year (8.6%) is below its 5-year average (9.5% per year).

Earnings vs Industry: JCHAC earnings growth over the past year (8.6%) underperformed the Consumer Durables industry 8.6%.


Return on Equity

High ROE: JCHAC's Return on Equity (14.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: JCHAC's short term assets (₹7.5B) exceed its short term liabilities (₹4.6B).

Long Term Liabilities: JCHAC's short term assets (₹7.5B) exceed its long term liabilities (₹966.8M).


Debt to Equity History and Analysis

Debt Level: JCHAC is debt free.

Reducing Debt: JCHAC has no debt compared to 5 years ago when its debt to equity ratio was 9.4%.

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

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


Balance Sheet

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

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


Next Steps

Dividend

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

0.074%

Current Dividend Yield


Dividend Yield vs Market

company0.07%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Years0.07%

Current dividend yield vs market & industry

Notable Dividend: JCHAC's dividend (0.074%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: JCHAC's dividend (0.074%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


Stability and Growth of Payments

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

Growing Dividend: JCHAC 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: JCHAC is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JCHAC'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?

3.5yrs

Average board tenure


CEO

Gurmeet Singh (54yo)

2.8yrs

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 ($USD259.55K) is about average for companies of similar size in the Indian market ($USD356.04K).

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


Board Age and Tenure

3.5yrs

Average Tenure

64yo

Average Age

Experienced Board: JCHAC's board of directors are considered experienced (3.5 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

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


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: 2.8yrs
    • 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: 1.9yrs
    • 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: 11.4yrs
    • Compensation: ₹800.00k
  • Mukesh Patel (65yo)

    Independent Non-Executive Director

    • Tenure: 16.8yrs
    • Compensation: ₹800.00k
  • Shinichi Iizuka (63yo)

    Additional Director

    • Tenure: 0.6yrs
  • Gurmeet Singh (54yo)

    Chairman & MD

    • Tenure: 2.8yrs
    • Compensation: ₹18.50m
  • Indira Parikh

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: ₹800.00k
  • Yoshikazu Ishihara

    Non-Executive Director

    • Tenure: 1.9yrs

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: JCHAC
  • Exchange: NSEI
  • Founded: 1984
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: ₹54.773b
  • 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 Analysis2019/12/09 12:48
End of Day Share Price2019/12/06 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.