NSEI:HIKAL

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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. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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

Stable Share Price: HIKAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.0%

HIKAL

7.3%

IN Pharmaceuticals

1.3%

IN Market


1 Year Return

21.7%

HIKAL

52.2%

IN Pharmaceuticals

4.3%

IN Market

Return vs Industry: HIKAL underperformed the Indian Pharmaceuticals industry which returned 52.2% over the past year.

Return vs Market: HIKAL exceeded the Indian Market which returned 4.3% over the past year.


Shareholder returns

HIKALIndustryMarket
7 Day21.0%7.3%1.3%
30 Day24.2%4.8%1.4%
90 Day48.6%19.6%12.6%
1 Year22.9%21.7%54.2%52.2%6.3%4.3%
3 Year31.6%28.4%35.4%31.7%4.4%-0.5%
5 Year171.7%162.3%8.4%4.5%46.1%35.1%

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?

21.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIKAL (₹189.55) is trading below our estimate of fair value (₹241.62)

Significantly Below Fair Value: HIKAL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HIKAL is poor value based on its PE Ratio (31.5x) compared to the IN Pharmaceuticals industry average (22.5x).

PE vs Market: HIKAL is poor value based on its PE Ratio (31.5x) compared to the Indian market (16.4x).


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 (2.9x) compared to the IN Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

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

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIKAL's forecast earnings growth (34% per year) is above the savings rate (7.2%).

Earnings vs Market: HIKAL's earnings (34% per year) are forecast to grow faster than the Indian market (26.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HIKAL's revenue (13.9% per year) is forecast to grow faster than the Indian market (11.7% per year).

High Growth Revenue: HIKAL's revenue (13.9% 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?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIKAL has high quality earnings.

Growing Profit Margin: HIKAL's current net profit margins (5.1%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: HIKAL's earnings have grown by 12.3% per year over the past 5 years.

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

Earnings vs Industry: HIKAL had negative earnings growth (-33.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.7%).


Return on Equity

High ROE: HIKAL's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Hikal's financial position?


Financial Position Analysis

Short Term Liabilities: HIKAL's short term assets (₹7.7B) exceed its short term liabilities (₹6.0B).

Long Term Liabilities: HIKAL's short term assets (₹7.7B) exceed its long term liabilities (₹3.6B).


Debt to Equity History and Analysis

Debt Level: HIKAL's debt to equity ratio (68.7%) is considered high.

Reducing Debt: HIKAL's debt to equity ratio has reduced from 99.1% to 68.7% over the past 5 years.

Debt Coverage: HIKAL's debt is well covered by operating cash flow (50.8%).

Interest Coverage: HIKAL's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HIKAL's dividend (0.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: HIKAL's dividend (0.63%) is low compared to the top 25% of dividend payers in the Indian market (2.23%).


Stability and Growth of Payments

Stable Dividend: HIKAL's dividend payments have been volatile in the past 10 years.

Growing Dividend: HIKAL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.9%), HIKAL'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

How experienced are the management team and are they aligned to shareholders interests?

16.3yrs

Average board tenure


CEO

Sameer Hiremath (46 yo)

8.83yrs

Tenure

₹35,000,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Sameer's total compensation ($USD475.48K) is about average for companies of similar size in the Indian market ($USD382.29K).

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


Board Members

NamePositionTenureCompensationOwnership
Sameer Hiremath
Joint MD8.83yrs₹35.00m0.47%
₹ 109.7m
Amit Kalyani
Non-Executive Director8.58yrs₹1.02mno data
Axel Kleemann
Member of Scientific Advisory Boardno data₹300.00kno data
Jai Hiremath
Founderno data₹48.99m1.09%
₹ 254.3m
Prakash Mehta
Independent Non-Executive Director26.25yrs₹2.12m0.012%
₹ 2.8m
Kannan Unni
Independent Non-Executive Directorno data₹2.02m0.016%
₹ 3.8m
Shivakumar Kheny
Independent Non-Executive Director24.08yrs₹1.72m0.037%
₹ 8.8m
Sugandha Hiremath
Non-Executive Directorno data₹1.82m7.84%
₹ 1.8b
Goverdhan Mehta
Member of Scientific Advisory Boardno datano datano data
Babasaheb Kalyani
Non-Executive Directorno data₹1.12m0.018%
₹ 4.3m
Ranjit Shahani
Independent Director2.58yrs₹1.32mno data
K. Nagarajan
Member of Scientific Advisory Boardno datano datano data

16.3yrs

Average Tenure

72yo

Average Age

Experienced Board: HIKAL's board of directors are seasoned and experienced ( 16.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹23.390b
  • 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 Analysis2020/09/20 19:35
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.