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

Solid track record with excellent balance sheet.


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

-2.6%

HIKAL

3.9%

IN Pharmaceuticals

3.8%

IN Market


1 Year Return

-7.3%

HIKAL

-17.5%

IN Pharmaceuticals

6.0%

IN Market

Return vs Industry: HIKAL exceeded the Indian Pharmaceuticals industry which returned -17.5% over the past year.

Return vs Market: HIKAL underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

HIKALIndustryMarket
7 Day-2.6%3.9%3.8%
30 Day-10.5%-4.4%2.9%
90 Day-7.5%-2.0%2.9%
1 Year-6.5%-7.3%-16.8%-17.5%8.2%6.0%
3 Year-4.7%-6.6%-25.4%-27.0%23.0%16.7%
5 Year55.6%50.5%-10.5%-13.2%43.6%30.0%

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

15.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HIKAL (₹139.4) is trading above our estimate of fair value (₹57.17)

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


Price To Earnings Ratio

PE vs Industry: HIKAL is good value based on its PE Ratio (15.3x) compared to the Pharmaceuticals industry average (15.7x).

PE vs Market: HIKAL is poor value based on its PE Ratio (15.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: HIKAL is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HIKAL is overvalued based on its PB Ratio (2.3x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Hikal forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIKAL's forecast earnings growth (16.6% per year) is above the savings rate (7.6%).

Earnings vs Market: HIKAL's earnings (16.6% per year) are forecast to grow slower than the Indian market (18% per year).

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

Revenue vs Market: HIKAL's revenue (13.8% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: HIKAL's revenue (13.8% 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 HIKAL's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: HIKAL's earnings have grown significantly by 23.7% per year over the past 5 years.

Accelerating Growth: HIKAL's earnings growth over the past year (34.3%) exceeds its 5-year average (23.7% per year).

Earnings vs Industry: HIKAL earnings growth over the past year (34.3%) exceeded the Pharmaceuticals industry 14.4%.


Return on Equity

High ROE: HIKAL's Return on Equity (14.9%) is considered low.


Return on Assets

ROA vs Industry: HIKAL has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: HIKAL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hikal's financial position?


Financial Position Analysis

Short Term Liabilities: HIKAL's short term assets (₹8.3B) exceeds its short term liabilities (₹6.0B)

Long Term Liabilities: HIKAL's short term assets (8.3B) exceeds its long term liabilities (3.3B)


Debt to Equity History and Analysis

Debt Level: HIKAL's debt to equity ratio (87.4%) is considered high

Reducing Debt: HIKAL's debt to equity ratio has reduced from 106.3% to 87.4% over the past 5 years.

Debt Coverage: HIKAL's debt is well covered by operating cash flow (28.1%).

Interest Coverage: HIKAL's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: HIKAL's debt is covered by short term assets (assets are 1.255860x debt).


Next Steps

Dividend

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

0.86%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HIKAL's dividend (0.86%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: HIKAL's dividend (0.86%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: HIKAL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HIKAL's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.2%), HIKAL's dividend payments are thoroughly 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 Hikal's salary, the management and board of directors tenure and is there insider trading?

23.2yrs

Average board tenure


CEO

Sameer Hiremath (45yo)

7.9yrs

Tenure

₹37,150,000

Compensation

Mr. Sameer Hiremath has been President and Joint Managing Director of Hikal Limited since November 10, 2011 and serves as its Chief Executive Officer. Mr. Hiremath served as Deputy Managing Director of Hik ...


CEO Compensation Analysis

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

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


Board Age and Tenure

23.2yrs

Average Tenure

71yo

Average Age

Experienced Board: HIKAL's board of directors are seasoned and experienced ( 23.2 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


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: 7.9yrs
    • 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

  • Amit Kalyani (44yo)

    Non-Executive Director

    • Tenure: 7.7yrs
    • Compensation: ₹1.26m
  • 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: 23.2yrs
    • Compensation: ₹1.86m
  • Sugandha Hiremath (67yo)

    Non-Executive Director

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

    Joint MD

    • Tenure: 7.9yrs
    • 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

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: ₹17.176b
  • 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 Analysis2019/10/20 12:49
End of Day Share Price2019/10/18 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.