NSEI:HINDCON

Stock Analysis Report

Executive Summary

Hindcon Chemicals Limited manufactures and sells sodium silicates and construction chemicals in India and internationally.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Risks

  • Hindcon Chemicals has significant price volatility in the past 3 months.
  • Hindcon Chemicals is not covered by any analysts.

Similar Companies

Share Price & News

How has Hindcon Chemicals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

NSEI:HINDCON

1.0%

IN Chemicals

0.6%

IN Market


1 Year Return

-13.7%

NSEI:HINDCON

-1.0%

IN Chemicals

-10.8%

IN Market

HINDCON underperformed the Chemicals industry which returned -1% over the past year.

HINDCON underperformed the Market in India which returned -10.8% over the past year.


Share holder returns

HINDCONIndustryMarket
7 Day0%1.0%0.6%
30 Day0.3%1.7%0.7%
90 Day-11.3%-1.0%-5.8%
1 Year-10.6%-13.7%0.2%-1.0%-9.0%-10.8%
3 Yearn/a32.0%28.0%18.9%12.9%
5 Yearn/a104.6%93.1%33.8%21.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hindcon Chemicals undervalued based on future cash flows and its price relative to the stock market?

4.82x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hindcon Chemicals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hindcon Chemicals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hindcon Chemicals is good value based on earnings compared to the IN Chemicals industry average.

Hindcon Chemicals is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Hindcon Chemicals, we can't assess if its growth is good value.


Price Based on Value of Assets

Hindcon Chemicals is good value based on assets compared to the IN Chemicals industry average.


Next Steps

Future Growth

How is Hindcon Chemicals expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Hindcon Chemicals is high growth as no revenue estimate data is available.

Hindcon Chemicals's earnings are expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare Hindcon Chemicals's revenue growth to the India market average as no estimate data is available.

Hindcon Chemicals's earnings growth is positive but not above the India market average.

Hindcon Chemicals's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hindcon Chemicals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hindcon Chemicals performed over the past 5 years?

41.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hindcon Chemicals has delivered over 20% year on year earnings growth in the past 5 years.

Hindcon Chemicals's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Hindcon Chemicals's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.


Return on Equity

Hindcon Chemicals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hindcon Chemicals used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Hindcon Chemicals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hindcon Chemicals's financial position?


Financial Position Analysis

Hindcon Chemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hindcon Chemicals's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hindcon Chemicals's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (55.8% vs 0.6% today).

Operating cash flow is negative therefore debt is not well covered.

Hindcon Chemicals earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 168.8x debt.


Next Steps

Dividend

What is Hindcon Chemicals's current dividend yield, its reliability and sustainability?

3.39%

Current Dividend Yield


Dividend Yield and Payments Analysis

Hindcon Chemicals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

Hindcon Chemicals's dividend is above the markets top 25% of dividend payers in India (2.31%).

It is too early to tell whether Hindcon Chemicals has stable dividend payments.

Hindcon Chemicals only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hindcon Chemicals's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Sanjay Goenka (53yo)

4.2yrs

Tenure

₹8,400,000

Compensation

Mr. Sanjay Goenka has been Managing Director of Hindcon Chemicals Ltd since July 24, 2015 and has been its Director since July 01, 2015. Mr. Goenka has completed his first year Bachelor of Commerce from Un ...


CEO Compensation Analysis

Sanjay's remuneration is higher than average for companies of similar size in India.

Sanjay's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

50yo

Average Age

The tenure for the Hindcon Chemicals management team is about average.


Board Age and Tenure

2.2yrs

Average Tenure

54yo

Average Age

The average tenure for the Hindcon Chemicals board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹700,15101 Jun 19
Sanjay Goenka
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares32,000
Max Price₹21.88
Buy₹386,41701 Jun 19
Nilima Goenka
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares16,000
Max Price₹24.15
Buy₹1,186,66104 Apr 19
Sanjay Goenka
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares64,000
Max Price₹18.54
Buy₹1,090,16303 Apr 19
Sanjay Goenka
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares56,000
Max Price₹19.47
Buy₹1,007,97522 Mar 19
Sanjay Goenka
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares52,000
Max Price₹19.38

Ownership Breakdown


Management Team

  • Sanjay Goenka (53yo)

    MD & Director

    • Tenure: 4.2yrs
    • Compensation: ₹8.40m
  • Nilima Goenka (50yo)

    Whole Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹3.60m
  • Ramsanatan Banerjee (63yo)

    Whole Time Director

    • Tenure: 7.6yrs
    • Compensation: ₹675.00k
  • Kashi Dey (41yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: ₹371.80k
  • Jaya Bajpai

    Company Secretary & Compliance Officer

    • Tenure: 0.8yrs
    • Compensation: ₹233.50k
  • Tarak Saha (41yo)

    Senior Manager of Marketing

    • Tenure: 0yrs

Board Members

  • Girdhari Goenka (55yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹9.50k
  • Binay Agarwal (53yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹20.00k
  • Sanjay Goenka (53yo)

    MD & Director

    • Tenure: 4.2yrs
    • Compensation: ₹8.40m
  • Nilima Goenka (50yo)

    Whole Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹3.60m
  • Ramsanatan Banerjee (63yo)

    Whole Time Director

    • Tenure: 7.6yrs
    • Compensation: ₹675.00k
  • Krishna Tantia (55yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹18.00k

Company Information

Hindcon Chemicals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hindcon Chemicals Limited
  • Ticker: HINDCON
  • Exchange: NSEI
  • Founded: 1947
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹181.215m
  • Shares outstanding: 10.24m
  • Website: https://www.hindcon.com

Location

  • Hindcon Chemicals Limited
  • 62/B, Braunfeld Row
  • 1st Floor
  • Kolkata
  • West Bengal
  • 700027
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HINDCONNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2018

Biography

Hindcon Chemicals Limited manufactures and sells sodium silicates and construction chemicals in India and internationally. The company offers products, such as coating and impregnation products, concrete a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 13:04
End of Day Share Price2019/08/27 00:00
Earnings2019/03/31
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.