NSEI:HESTERBIO

Stock Analysis Report

Executive Summary

Hester Biosciences Limited manufactures and sells poultry and animal vaccines, health products, and diagnostics in India.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet.

Risks

  • Hester Biosciences is covered by less than 3 analysts.

Share Price & News

How has Hester Biosciences's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.6%

NSEI:HESTERBIO

-0.3%

IN Biotechs

0.6%

IN Market


1 Year Return

46.4%

NSEI:HESTERBIO

-28.2%

IN Biotechs

-10.8%

IN Market

HESTERBIO outperformed the Biotechs industry which returned -28.2% over the past year.

HESTERBIO outperformed the Market in India which returned -10.8% over the past year.


Share holder returns

HESTERBIOIndustryMarket
7 Day8.6%-0.3%0.6%
30 Day8.2%1.7%0.7%
90 Day6.1%-4.4%-5.8%
1 Year47.2%46.4%-28.0%-28.2%-9.0%-10.8%
3 Year142.2%136.9%50.4%49.4%18.9%12.9%
5 Yearn/a157.1%151.0%33.8%21.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.66x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Hester Biosciences is overvalued based on earnings compared to the IN Biotechs industry average.

Hester Biosciences is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Hester Biosciences is overvalued based on assets compared to the IN Biotechs industry average.


Next Steps

Future Growth

How is Hester Biosciences expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hester Biosciences's revenue is expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).

Hester Biosciences's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

Hester Biosciences's revenue growth is positive but not above the India market average.

Hester Biosciences's earnings growth is positive but not above the India market average.

Hester Biosciences's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Hester Biosciences performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hester Biosciences has delivered over 20% year on year earnings growth in the past 5 years.

Hester Biosciences's 1-year earnings growth exceeds its 5-year average (39.6% vs 23.9%)

Hester Biosciences's earnings growth has exceeded the Asia Biotechs industry average in the past year (39.6% vs 8.6%).


Return on Equity

Hester Biosciences has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Hester Biosciences used its assets more efficiently than the IN Biotechs industry average last year based on Return on Assets.


Return on Capital Employed

Hester Biosciences has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hester Biosciences's financial position?


Financial Position Analysis

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

Hester Biosciences's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hester Biosciences's level of debt (49.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (62% vs 49.4% today).

Debt is well covered by operating cash flow (53.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

What is Hester Biosciences's current dividend yield, its reliability and sustainability?

0.60%

Current Dividend Yield


Dividend Yield and Payments Analysis

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

Hester Biosciences's dividend is below the markets top 25% of dividend payers in India (2.31%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.4x 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 Hester Biosciences's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Rajiv Gandhi (57yo)

14.5yrs

Tenure

₹21,000,000

Compensation

Mr. Rajiv D. Gandhi has been the Chief Executive Officer and Managing Director of Hester Biosciences Limited (Former Hester Pharmaceuticals Limited) since March 2005. In 1995, Mr. Gandhi set up this plant  ...


CEO Compensation Analysis

Rajiv's remuneration is about average for companies of similar size in India.

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


Management Age and Tenure

4.1yrs

Average Tenure

57yo

Average Age

The tenure for the Hester Biosciences management team is about average.


Board Age and Tenure

8.9yrs

Average Tenure

49.5yo

Average Age

The tenure for the Hester Biosciences board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Rajiv Gandhi (57yo)

    CEO, MD & Executive Director

    • Tenure: 14.5yrs
    • Compensation: ₹21.00m
  • Upendra Jani (63yo)

    Consultant

    • Tenure: 0yrs
  • Priya Gandhi (26yo)

    Manager of Branding & Communication

    • Tenure: 0yrs
    • Compensation: ₹1.22m
  • Raj Gera

    Vice President of Sales & Marketing

    • Tenure: 6.9yrs
  • Vinod Mali

    Company Secretary & Compliance Officer

    • Tenure: 1.3yrs
    • Compensation: ₹487.62k
  • Sulochana Shrestha

    CEO of Hester Biosciences Nepal Private Limited

    • Tenure: 0yrs
  • S. Savant

    Assistant Vice President of Human Resources

    • Tenure: 0.7yrs

Board Members

  • Rajiv Gandhi (57yo)

    CEO, MD & Executive Director

    • Tenure: 14.5yrs
    • Compensation: ₹21.00m
  • Bhupendra Gandhi (77yo)

    Non-Executive Non-Independent Chairman

    • Tenure: 14.4yrs
    • Compensation: ₹40.00k
  • Ravin Gandhi (46yo)

    Non-Executive & Non-Independent Director

    • Tenure: 20.4yrs
  • Sanjiv Gandhi (54yo)

    Non Executive Non Independent Director

    • Tenure: 32.4yrs
    • Compensation: ₹40.00k
  • Vishwesh Patel (42yo)

    Non-Executive Independent Director

    • Tenure: 8.9yrs
    • Compensation: ₹110.00k
  • Nina Gandhi

    Alternate Director

    • Tenure: 3.3yrs
    • Compensation: ₹20.00k
  • Grishma Nanavaty (42yo)

    Non-Executive Independent Director

    • Tenure: 5.2yrs
    • Compensation: ₹110.00k
  • Naman Patel (31yo)

    Non-Executive Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹110.00k
  • Amit Shukla (53yo)

    Non-Executive Independent Director

    • Tenure: 4.1yrs
    • Compensation: ₹110.00k

Company Information

Hester Biosciences Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hester Biosciences Limited
  • Ticker: HESTERBIO
  • Exchange: NSEI
  • Founded: 1987
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹15.129b
  • Shares outstanding: 8.51m
  • Website: https://www.hester.in

Location

  • Hester Biosciences Limited
  • Pushpak
  • 1st Floor
  • Ahmedabad
  • Gujarat
  • 380006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524669BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1996
HESTERBIONSEI (National Stock Exchange of India)YesEquity SharesININROct 1996

Biography

Hester Biosciences Limited manufactures and sells poultry and animal vaccines, health products, and diagnostics in India. It operates through Poultry Healthcare, Animal Healthcare, and Others segments. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 12:59
End of Day Share Price2019/09/17 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.