BSE:532761

Stock Analysis Report

Executive Summary

HOV Services Limited, together with its subsidiaries, provides software and information technology enabled services in India and internationally.

Snowflake

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532761's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

532761

-1.2%

IN IT

-1.2%

IN Market


1 Year Return

-66.6%

532761

10.4%

IN IT

4.0%

IN Market

Return vs Industry: 532761 underperformed the Indian IT industry which returned 10.4% over the past year.

Return vs Market: 532761 underperformed the Indian Market which returned 4% over the past year.


Shareholder returns

532761IndustryMarket
7 Day-0.3%-1.2%-1.2%
30 Day-11.2%2.3%4.8%
90 Day-26.7%-1.8%7.5%
1 Year-66.6%-66.6%13.4%10.4%6.1%4.0%
3 Year-38.6%-38.6%80.7%70.0%34.2%27.3%
5 Year-66.4%-66.4%62.4%47.2%37.4%24.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is HOV Services undervalued compared to its fair value and its price relative to the market?

429.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532761 (₹60) is trading above our estimate of fair value (₹1.5)

Significantly Below Fair Value: 532761 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532761 is poor value based on its PE Ratio (429.8x) compared to the IT industry average (11.1x).

PE vs Market: 532761 is poor value based on its PE Ratio (429.8x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532761's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532761 is good value based on its PB Ratio (0.2x) compared to the IN IT industry average (1x).


Next Steps

Future Growth

How is HOV Services forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.4%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as HOV Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has HOV Services performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532761 has high quality earnings.

Growing Profit Margin: 532761's current net profit margins (1.7%) are lower than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: 532761 has become profitable over the past 5 years, growing earnings by 22.2% per year.

Accelerating Growth: 532761's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532761 had negative earnings growth (-92.6%) over the past year, making it difficult to compare to the IT industry average (9.9%).


Return on Equity

High ROE: 532761's Return on Equity (0.04%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HOV Services's financial position?


Financial Position Analysis

Short Term Liabilities: 532761's short term assets (₹110.1M) exceeds its short term liabilities (₹41.4M)

Long Term Liabilities: 532761's short term assets (110.1M) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: 532761's debt to equity ratio (1%) is considered satisfactory

Reducing Debt: 532761's debt to equity ratio has reduced from 6% to 1% over the past 5 years.

Debt Coverage: 532761's debt is well covered by operating cash flow (62.5%).

Interest Coverage: 532761 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 532761 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532761's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532761's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532761's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532761's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532761's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532761 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532761's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of HOV Services's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

HOV Services has no CEO, or we have no data on them.


Management Age and Tenure

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 532761's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

66yo

Average Age

Experienced Board: 532761's board of directors are considered experienced (6.7 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

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


Management Team

  • Surinder Rametra (79yo)

    Executive Director

    • Tenure: 16.5yrs
  • Sunil Rajadhyaksha (66yo)

    Chairman

    • Tenure: 8.3yrs
    • Compensation: ₹4.80m
  • Vik Negi (43yo)

    Executive Officer & Executive Director

    • Tenure: 2.8yrs
  • Bhuvanesh Sharma (47yo)

    VP of Corporate Affairs

    • Tenure: 4.8yrs
    • Compensation: ₹2.70m
  • Jim Reynolds (50yo)

    Chief Financial Officer of Global

    • Tenure: 0yrs
  • Balbirsingh Batra (60yo)

    Vice President

    • Tenure: 0yrs
  • Nilesh Bafna (42yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: ₹3.18m
  • Shrirang Chitnis (51yo)

    Director of Applications Development

    • Tenure: 0yrs
  • A.D. Venkatesh (58yo)

    Assistant General Counsel

    • Tenure: 0yrs

Board Members

  • Surinder Rametra (79yo)

    Executive Director

    • Tenure: 16.5yrs
  • Baldev Gupta (79yo)

    Non-Executive Independent Director

    • Tenure: 13.8yrs
    • Compensation: ₹480.00k
  • Sunil Rajadhyaksha (66yo)

    Chairman

    • Tenure: 8.3yrs
    • Compensation: ₹4.80m
  • Vik Negi (43yo)

    Executive Officer & Executive Director

    • Tenure: 2.8yrs
  • Lakshmi Kumar

    Non-Executive Independent Director

    • Tenure: 5.1yrs
    • Compensation: ₹420.00k
  • Harjit Anand (65yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹50.00k

Company Information

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


Key Information

  • Name: HOV Services Limited
  • Ticker: 532761
  • Exchange: BSE
  • Founded: 1989
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹750.932m
  • Shares outstanding: 12.59m
  • Website: https://www.hovsltd.com

Number of Employees


Location

  • HOV Services Limited
  • Sharda Arcade
  • 3rd Floor
  • Pune
  • Maharashtra
  • 411037
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532761BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2006
HOVSNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2006

Biography

HOV Services Limited, together with its subsidiaries, provides software and information technology enabled services in India and internationally. The company offers software development, maintenance, and s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 12:47
End of Day Share Price2019/11/13 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.