BSE:532859

Stock Analysis Report

Hinduja Global Solutions

Executive Summary

Hinduja Global Solutions Limited provides business process management services in the United States, Canada, Europe, Asia, and the Middle East.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Hinduja Global Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532859's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.08%

532859

-0.5%

IN IT

-0.7%

IN Market


1 Year Return

47.2%

532859

8.6%

IN IT

10.0%

IN Market

Return vs Industry: 532859 exceeded the Indian IT industry which returned 9.5% over the past year.

Return vs Market: 532859 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

532859IndustryMarket
7 Day0.08%-0.5%-0.7%
30 Day35.7%1.6%-0.3%
90 Day47.6%7.6%3.2%
1 Year51.0%47.2%11.4%8.6%12.0%10.0%
3 Year52.5%44.1%70.2%60.3%23.9%17.1%
5 Year67.8%49.5%57.0%42.5%38.3%25.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hinduja Global Solutions undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532859 (₹887.2) is trading below our estimate of fair value (₹1918.49)

Significantly Below Fair Value: 532859 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532859 is good value based on its PE Ratio (9.3x) compared to the IT industry average (11.2x).

PE vs Market: 532859 is good value based on its PE Ratio (9.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 532859 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 532859 is overvalued based on its PB Ratio (1.1x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Hinduja Global Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532859's forecast earnings growth (10.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 532859's earnings (10.4% per year) are forecast to grow slower than the Indian market (21.5% per year).

High Growth Earnings: 532859's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532859's revenue (10.4% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 532859's revenue (10.4% 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 532859's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hinduja Global Solutions performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532859 has high quality earnings.

Growing Profit Margin: 532859's current net profit margins (3.8%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: 532859's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: 532859's earnings growth over the past year (19.5%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: 532859 earnings growth over the past year (19.5%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: 532859's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hinduja Global Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: 532859's short term assets (₹17.3B) exceed its short term liabilities (₹9.5B).

Long Term Liabilities: 532859's short term assets (₹17.3B) exceed its long term liabilities (₹12.2B).


Debt to Equity History and Analysis

Debt Level: 532859's debt to equity ratio (28.2%) is considered satisfactory.

Reducing Debt: 532859's debt to equity ratio has reduced from 39.2% to 28.2% over the past 5 years.

Debt Coverage: 532859's debt is well covered by operating cash flow (114.2%).

Interest Coverage: 532859's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: 532859 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532859's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is Hinduja Global Solutions's current dividend yield, its reliability and sustainability?

2.54%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532859's dividend (2.54%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532859's dividend (2.54%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 532859's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532859's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.5%), 532859'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?

2.8yrs

Average management tenure


CEO

Partha DeSarkar (56yo)

₹77,446,676

Compensation

Mr. Partha DeSarkar serves as the Global Chief Executive Officer of Hinduja Global Solutions Limited and served as its Manager until September 4, 2019. Mr. DeSarkar serves as Executive Director of Hinduja  ...


CEO Compensation Analysis

Compensation vs Market: Partha's total compensation ($USD1.08M) is above average for companies of similar size in the Indian market ($USD302.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Partha DeSarkar
CEO & Executive Director0yrs₹77.45m0.24% 44.3m
Srinivas Palakodeti
Global Chief Financial Officer10.1yrs₹41.60m0.084% 15.5m
Natarajan Radhakrishnan
President & Global Chief Innovation Officer0.8yrsno datano data
Soumen Choudhury
Senior Vice President of Operations4.8yrsno datano data
Jayaprasad Menon
General Manager of Finance and Accounts0yrsno datano data
C. Subramanya
Global Chief Technology Officer0yrsno data0.043% 7.8m
P. Mohanan
General Manager of Administration0yrsno datano data
Ramalingam Ravi
Head of Investor Relations0yrsno datano data
S. Mahadevan
Executive VP of Legal0yrsno data0.036% 6.6m
Shilpa Harsh
SVP of Global Corporate Communications0.8yrsno datano data

2.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 532859's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Partha DeSarkar
CEO & Executive Director0yrs₹77.45m0.24% 44.3m
Ganesh Natarajan
Additional Director & Independent Director0.4yrsno datano data
Anil Harish
Independent Director4.4yrs₹6.40mno data
Ashok Hinduja
Chairman Emeritus12.3yrsno data4.37% 801.5m
Yashodhan Kale
Non-Executive Chairman0.4yrs₹3.62mno data
Bhumika Batra
Additional Independent Director0.4yrsno datano data
Sudhanshu Tripathi
Additional Director & Non-Executive Non-Independent Director0.4yrsno datano data

0.4yrs

Average Tenure

61yo

Average Age

Experienced Board: 532859's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


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

Hinduja Global Solutions Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hinduja Global Solutions Limited
  • Ticker: 532859
  • Exchange: BSE
  • Founded: 1973
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹18.331b
  • Shares outstanding: 20.87m
  • Website: https://www.teamhgs.com

Number of Employees


Location

  • Hinduja Global Solutions Limited
  • Gold Hill Square Software Park
  • 1st Floor
  • Bengaluru
  • Karnataka
  • 560068
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532859BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2007
HGSNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2007

Biography

Hinduja Global Solutions Limited provides business process management services in the United States, Canada, Europe, Asia, and the Middle East. The company provides a suite of digital innovation solutions, including voice/IVR, email, chat, text, social, self-service, mobile camera support, mobile messaging, and work at home, as well as analytics, automation, and digital marketing solutions. It also offers business process optimization solutions, such as back-office, human resources outsourcing, and B2B. In addition, the company provides consumer engagement solutions; and customer relationship management programs in the consumer goods and services, e-commerce, telecom and media verticals. Further, it is involved in investment activities; and the provision of contact center, consulting, call center, and offshoring services. Additionally, the company offers digital consulting services, as well as cloud migration and monitoring services. Hinduja Global Solutions Limited serves customers in automotive, banking, financial, insurance, consumer electronics and technology, consumer packaged goods, healthcare, public sector, retail, telecom, and travel and hospitality industries. The company was formerly known as HTMT Global Solutions Limited and changed its name to Hinduja Global Solutions Limited in December 2008. Hinduja Global Solutions Limited was founded in 1973 and is based in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 12:50
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.