NSEI:HIKAL

Stock Analysis Report

Executive Summary

Hikal Limited, together with its subsidiaries, manufactures and sells various chemical intermediates, specialty chemicals, and active pharma ingredients to pharmaceutical, food, animal healthcare, biotech, crop protection, and specialty chemicals and biocides companies.

Snowflake

Fundamentals

Excellent balance sheet with solid track record.

Risks

  • Hikal is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

NSEI:HIKAL

-0.7%

IN Pharmaceuticals

-1.2%

IN Market


1 Year Return

-17.1%

NSEI:HIKAL

-22.9%

IN Pharmaceuticals

-10.7%

IN Market

HIKAL outperformed the Pharmaceuticals industry which returned -23.4% over the past year.

HIKAL underperformed the Market in India which returned -11.5% over the past year.


Share holder returns

HIKALIndustryMarket
7 Day0.1%-0.7%-1.2%
30 Day2.9%3.2%-0.6%
90 Day-8.6%2.2%-7.7%
1 Year-16.4%-17.1%-22.2%-22.9%-9.0%-10.7%
3 Year22.3%19.9%-23.6%-25.1%17.2%11.2%
5 Year68.5%63.0%-5.3%-8.2%34.9%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Hikal is overvalued based on earnings compared to the IN Pharmaceuticals industry average.

Hikal is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Hikal is poor value based on expected growth next year.


Price Based on Value of Assets

Hikal is overvalued based on assets compared to the IN Pharmaceuticals industry average.


Next Steps

Future Growth

How is Hikal expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hikal's revenue is expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).

Hikal's earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).

Hikal's revenue growth is expected to exceed the India market average.

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

Hikal'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 Hikal will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hikal performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Hikal's 1-year earnings growth exceeds its 5-year average (34.3% vs 23.7%)

Hikal's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (34.3% vs 15.4%).


Return on Equity

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


Return on Assets

Hikal used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Hikal's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Hikal's level of debt (87.4%) 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 (106.3% vs 87.4% today).

Debt is well covered by operating cash flow (28.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Dividend Yield and Payments Analysis

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

Hikal's dividend is below the markets top 25% of dividend payers in India (2.35%).

Hikal has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Hikal only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7.6x 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 Hikal's salary, the management and board of directors tenure and is there insider trading?

23.1yrs

Average board tenure


CEO

Jai Hiremath (71yo)

0yrs

Tenure

₹53,030,000

Compensation

Mr. Jai V. Hiremath, CA, is a Founder and serves as Managing Director of Hikal Limited. Mr. Hiremath served Joint Managing Director of Hikal Limited. He has more than 30 years of experience in the chemica ...


CEO Compensation Analysis

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

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


Board Age and Tenure

23.1yrs

Average Tenure

71yo

Average Age

The average tenure for the Hikal board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jai Hiremath (71yo)

    Founder

    • Tenure: 0yrs
    • Compensation: ₹53.03m
  • Sham Wahalekar

    CFO, President of Finance

    • Tenure: 0yrs
    • Compensation: ₹11.57m
  • Sameer Hiremath (45yo)

    Joint MD

    • Tenure: 0yrs
    • Compensation: ₹37.15m
  • Manoj Mehrotra (57yo)

    President of Pharmaceuticals Business

    • Tenure: 0yrs
  • Kumaar Priyaranjan

    President of Human Capital & CSR

    • Tenure: 0yrs
  • Anish Swadi

    President of Strategy & Business Development

    • Tenure: 0yrs
  • T. Devanathan

    Head of IP & Quality

    • Tenure: 0yrs
  • Kumar Inamdar

    President of Crop Protection Business

    • Tenure: 0yrs
  • Sudhir Nambiar

    President of Research & Technology

    • Tenure: 0yrs

Board Members

  • Jai Hiremath (71yo)

    Founder

    • Tenure: 0yrs
    • Compensation: ₹53.03m
  • Prakash Mehta (77yo)

    Independent Non-Executive Director

    • Tenure: 25.3yrs
    • Compensation: ₹2.36m
  • Kannan Unni (78yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹2.06m
  • Shivkumar Kheny (71yo)

    Independent Non-Executive Director

    • Tenure: 23.1yrs
    • Compensation: ₹1.86m
  • Sugandha Hiremath (67yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹2.16m
  • Sameer Hiremath (45yo)

    Joint MD

    • Tenure: 0yrs
    • Compensation: ₹37.15m
  • Goverdhan Mehta (76yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Baba Kalyani (70yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹1.16m
  • K. Nagarajan (89yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Wolfgang Welter (71yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: ₹1.46m

Company Information

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


Key Information

  • Name: Hikal Limited
  • Ticker: HIKAL
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹19.445b
  • Shares outstanding: 123.30m
  • Website: https://www.hikal.com

Number of Employees


Location

  • Hikal Limited
  • Great Eastern Chambers
  • Sector 11
  • Navi Mumbai
  • Maharashtra
  • 400614
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524735BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1998
HIKALNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1998

Biography

Hikal Limited, together with its subsidiaries, manufactures and sells various chemical intermediates, specialty chemicals, and active pharma ingredients to pharmaceutical, food, animal healthcare, biotech, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 12:42
End of Day Share Price2019/09/18 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.