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.


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

-7.0%

HINDCON

1.1%

IN Chemicals

2.4%

IN Market


1 Year Return

-11.1%

HINDCON

22.1%

IN Chemicals

8.0%

IN Market

Return vs Industry: HINDCON underperformed the Indian Chemicals industry which returned 22.1% over the past year.

Return vs Market: HINDCON underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

HINDCONIndustryMarket
7 Day-7.0%1.1%2.4%
30 Day-9.6%3.7%2.5%
90 Day-9.3%10.4%3.6%
1 Year-8.0%-11.1%25.2%22.1%10.3%8.0%
3 Yearn/a37.0%31.6%22.3%16.0%
5 Yearn/a130.3%112.8%42.8%29.3%

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 compared to its fair value and its price relative to the market?

4.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HINDCON (₹16) is trading above our estimate of fair value (₹6.16)

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


Price To Earnings Ratio

PE vs Industry: HINDCON is good value based on its PE Ratio (4.4x) compared to the Chemicals industry average (10.8x).

PE vs Market: HINDCON is good value based on its PE Ratio (4.4x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HINDCON is good value based on its PB Ratio (0.5x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Hindcon Chemicals forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HINDCON's forecast earnings growth (13.9% per year) is above the savings rate (7.6%).

Earnings vs Market: HINDCON's earnings (13.9% per year) are forecast to grow slower than the Indian market (18.4% per year).

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

Revenue vs Market: Insufficient data to determine if HINDCON's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if HINDCON's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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

Earnings Trend: HINDCON's earnings have grown significantly by 41.2% per year over the past 5 years.

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

Earnings vs Industry: HINDCON had negative earnings growth (-39.2%) over the past year, making it difficult to compare to the Chemicals industry average (10.4%).


Return on Equity

High ROE: HINDCON's Return on Equity (9.4%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Hindcon Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: HINDCON's short term assets (₹302.8M) exceeds its short term liabilities (₹58.7M)

Long Term Liabilities: HINDCON's short term assets (302.8M) exceeds its long term liabilities (316.6K)


Debt to Equity History and Analysis

Debt Level: HINDCON's debt to equity ratio (0.6%) is considered satisfactory

Reducing Debt: HINDCON's debt to equity ratio has reduced from 55.8% to 0.6% over the past 5 years.

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

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


Balance Sheet

Inventory Level: HINDCON has a low level of unsold assets or inventory.

Debt Coverage by Assets: HINDCON's 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?

3.75%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HINDCON's dividend (3.75%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: HINDCON's dividend (3.75%) is in the top 25% of dividend payers in the Indian market (2.41%)

Stable Dividend: Too early to tell whether HINDCON's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HINDCON's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.3%), HINDCON's dividend payments are well 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

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)

4.3yrs

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

Compensation vs. Market: Insufficient data to establish whether Sanjay's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

50yo

Average Age

Experienced Management: HINDCON's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

Experienced Board: HINDCON's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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₹700,15101 Jun 19
Sanjay Goenka
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares32,000
Max Price₹21.88
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: 4.3yrs
    • Compensation: ₹8.40m
  • Nilima Goenka (50yo)

    Whole Time Director

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

    Whole Time Director

    • Tenure: 7.7yrs
    • 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: 2.2yrs
    • Compensation: ₹9.50k
  • Binay Agarwal (53yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹20.00k
  • Sanjay Goenka (53yo)

    MD & Director

    • Tenure: 4.3yrs
    • Compensation: ₹8.40m
  • Nilima Goenka (50yo)

    Whole Time Director

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

    Whole Time Director

    • Tenure: 7.7yrs
    • Compensation: ₹675.00k
  • Krishna Tantia (55yo)

    Independent Director

    • Tenure: 2.2yrs
    • 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: ₹176.096m
  • 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 Analysis2019/10/23 13:02
End of Day Share Price2019/10/23 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.