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Hinduja Global Solutions

BSE:532859
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
532859
BSE
₹14B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Hinduja Global Solutions Limited provides business process management services in the United States, Canada, Europe, Asia, and the Middle East. The last earnings update was 71 days ago. More info.


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532859 Share Price and Events
7 Day Returns
1.1%
BSE:532859
2.6%
IN IT
1.1%
IN Market
1 Year Returns
-33.6%
BSE:532859
25.3%
IN IT
-0.9%
IN Market
532859 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hinduja Global Solutions (532859) 1.1% 4.2% 1.6% -33.6% 57.9% 25.4%
IN IT 2.6% 4.7% 8.9% 25.3% 48.1% 80%
IN Market 1.1% 1.8% 5.7% -0.9% 41% 72.2%
1 Year Return vs Industry and Market
  • 532859 underperformed the IT industry which returned 25.3% over the past year.
  • 532859 underperformed the Market in India which returned -0.9% over the past year.
Price Volatility
532859
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hinduja Global Solutions to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hinduja Global Solutions.

BSE:532859 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 17.7%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:532859
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 35%) (30.28%))
1.175
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.175 * 8.6%)
17.66%

Discounted Cash Flow Calculation for BSE:532859 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hinduja Global Solutions is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:532859 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.66%)
2019 1,057.00 Analyst x1 898.36
2020 1,869.00 Analyst x1 1,350.07
2021 2,128.00 Analyst x1 1,306.45
2022 2,134.80 Est @ 0.32% 1,113.92
2023 2,187.92 Est @ 2.49% 970.29
2024 2,275.59 Est @ 4.01% 857.71
2025 2,390.96 Est @ 5.07% 765.93
2026 2,529.97 Est @ 5.81% 688.82
2027 2,690.24 Est @ 6.33% 622.53
2028 2,870.46 Est @ 6.7% 564.54
Present value of next 10 years cash flows ₹9,138.62
BSE:532859 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹2,870.46 × (1 + 7.55%) ÷ (17.66% – 7.55%)
₹30,538.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹30,538.38 ÷ (1 + 17.66%)10
₹6,006.03
BSE:532859 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹9,138.62 + ₹6,006.03
₹15,144.65
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹15,144.65 / 20.84
₹726.75
BSE:532859 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹726.75
Current discount Discount to share price of ₹651.95
= -1 x (₹651.95 - ₹726.75) / ₹726.75
10.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hinduja Global Solutions is available for.
Intrinsic value
10%
Share price is ₹651.95 vs Future cash flow value of ₹726.75
Current Discount Checks
For Hinduja Global Solutions to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hinduja Global Solutions's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Hinduja Global Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hinduja Global Solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hinduja Global Solutions's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:532859 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹80.35
BSE:532859 Share Price ** BSE (2019-04-18) in INR ₹651.95
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.19x
India Market PE Ratio Median Figure of 2,736 Publicly-Listed Companies 16.34x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hinduja Global Solutions.

BSE:532859 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532859 Share Price ÷ EPS (both in INR)

= 651.95 ÷ 80.35

8.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hinduja Global Solutions is good value based on earnings compared to the IN IT industry average.
  • Hinduja Global Solutions is good value based on earnings compared to the India market.
Price based on expected Growth
Does Hinduja Global Solutions's expected growth come at a high price?
Raw Data
BSE:532859 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
21.4%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.32x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

BSE:532859 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.11x ÷ 21.4%

0.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hinduja Global Solutions is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Hinduja Global Solutions's assets?
Raw Data
BSE:532859 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹746.94
BSE:532859 Share Price * BSE (2019-04-18) in INR ₹651.95
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,627 Publicly-Listed Companies 1.11x
BSE:532859 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532859 Share Price ÷ Book Value per Share (both in INR)

= 651.95 ÷ 746.94

0.87x

* Primary Listing of Hinduja Global Solutions.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hinduja Global Solutions is good value based on assets compared to the IN IT industry average.
X
Value checks
We assess Hinduja Global Solutions's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Hinduja Global Solutions has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hinduja Global Solutions expected to grow at an attractive rate?
  • Hinduja Global Solutions's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Hinduja Global Solutions's earnings growth is expected to exceed the India market average.
  • Hinduja Global Solutions's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:532859 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:532859 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 21.4%
BSE:532859 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 6.7%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:532859 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:532859 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 52,700 3,810 1
2020-03-31 50,454 3,471 2,268 2
2019-03-31 47,246 2,583 1,981 1
BSE:532859 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 45,048 1,672
2018-09-30 42,390 1,827
2018-06-30 40,230 1,892
2018-03-31 38,494 3,415 1,936
2017-12-31 37,855 1,877
2017-09-30 37,660 1,859
2017-06-30 37,286 1,694
2017-03-31 37,110 4,092 1,795
2016-12-31 36,849 1,695
2016-09-30 36,151 1,420
2016-06-30 34,989 1,362
2016-03-31 33,210 1,459 1,009

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hinduja Global Solutions's earnings are expected to grow significantly at over 20% yearly.
  • Hinduja Global Solutions's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:532859 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Hinduja Global Solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532859 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31
2020-03-31 108.93 108.93 108.93 1.00
2019-03-31 95.15 95.15 95.15 1.00
BSE:532859 Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 80.35
2018-09-30 87.83
2018-06-30 90.97
2018-03-31 93.18
2017-12-31 89.89
2017-09-30 89.18
2017-06-30 81.61
2017-03-31 86.58
2016-12-31 80.61
2016-09-30 68.84
2016-06-30 65.69
2016-03-31 48.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hinduja Global Solutions is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hinduja Global Solutions's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hinduja Global Solutions has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hinduja Global Solutions's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hinduja Global Solutions's year on year earnings growth rate has been positive over the past 5 years.
  • Hinduja Global Solutions's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hinduja Global Solutions's 1-year earnings growth is negative, it can't be compared to the IN IT industry average.
Earnings and Revenue History
Hinduja Global Solutions's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hinduja Global Solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532859 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 45,048.31 1,672.26 1,914.66
2018-09-30 42,390.49 1,827.04 1,914.66
2018-06-30 40,230.49 1,892.19
2018-03-31 38,493.68 1,936.00 1,914.66
2017-12-31 37,854.70 1,876.89 1,733.61
2017-09-30 37,660.29 1,859.43 1,733.61
2017-06-30 37,286.46 1,694.26
2017-03-31 37,109.94 1,795.48 1,734.97
2016-12-31 36,849.36 1,695.46 1,505.20
2016-09-30 36,151.32 1,420.05 1,505.20
2016-06-30 34,988.83 1,361.54
2016-03-31 33,209.98 1,008.79 1,535.67
2015-12-31 31,210.47 1,015.06 3,403.59
2015-09-30 29,671.12 1,371.64 3,403.59
2015-06-30 28,801.91 1,486.93
2015-03-31 28,075.80 1,650.26 1,101.70
2014-12-31 27,423.07 1,586.28 2,993.70
2014-09-30 26,667.11 1,599.51 2,993.70
2014-06-30 26,119.01 1,644.42 2,993.70
2014-03-31 25,048.55 1,695.51 2,993.43
2013-12-31 23,896.09 1,748.12 2,304.59
2013-09-30 22,539.24 1,406.79 2,304.59
2013-06-30 20,759.00 1,088.12 2,304.59
2013-03-31 19,834.28 905.71 2,304.87
2012-12-31 19,175.91 814.75 1,921.77
2012-09-30 18,545.63 896.81 1,921.77
2012-06-30 17,426.07 1,051.39 1,921.77

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hinduja Global Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hinduja Global Solutions used its assets less efficiently than the IN IT industry average last year based on Return on Assets.
  • Hinduja Global Solutions has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hinduja Global Solutions's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hinduja Global Solutions has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hinduja Global Solutions's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hinduja Global Solutions's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hinduja Global Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hinduja Global Solutions's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hinduja Global Solutions's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hinduja Global Solutions Company Filings, last reported 3 months ago.

BSE:532859 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 15,635.39 4,113.22 6,740.14
2018-09-30 15,635.39 4,113.22 6,740.14
2018-06-30 14,822.87 4,478.76 6,695.69
2018-03-31 14,822.87 5,853.99 4,615.62
2017-12-31 14,304.23 4,297.01 5,667.70
2017-09-30 14,304.23 4,297.01 5,667.70
2017-06-30 13,368.03 5,969.47 6,798.55
2017-03-31 13,368.03 6,615.89 3,095.71
2016-12-31 12,188.64 6,836.82 6,616.92
2016-09-30 12,188.64 6,836.82 6,616.92
2016-06-30 11,783.43 7,650.12 3,748.11
2016-03-31 11,879.64 8,369.98 2,667.88
2015-12-31 11,342.00 8,432.00 4,598.00
2015-09-30 11,222.50 7,139.12 4,268.28
2015-06-30 11,177.00 7,276.00 5,081.00
2015-03-31 10,742.30 6,409.69 3,549.81
2014-12-31 15,562.00 6,297.00 5,647.00
2014-09-30 15,221.49 6,047.08 4,222.80
2014-06-30 14,520.75 6,342.36 4,551.39
2014-03-31 14,520.75 6,342.36 4,551.39
2013-12-31 14,363.80 4,924.31 4,907.83
2013-09-30 14,363.80 4,924.31 4,907.83
2013-06-30 12,354.83 5,510.22 4,062.20
2013-03-31 12,354.83 5,510.22 4,062.20
2012-12-31 12,229.05 5,177.63 5,400.74
2012-09-30 12,229.05 5,177.63 5,400.74
2012-06-30 11,482.70 7,329.30 7,198.86
  • Hinduja Global Solutions's level of debt (26.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (34.4% vs 26.3% today).
  • Debt is well covered by operating cash flow (83%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.6x coverage).
X
Financial health checks
We assess Hinduja Global Solutions's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hinduja Global Solutions has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.53%
Current annual income from Hinduja Global Solutions dividends. Estimated to be 1.53% next year.
If you bought ₹2,000 of Hinduja Global Solutions shares you are expected to receive ₹31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hinduja Global Solutions's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Hinduja Global Solutions's dividend is below the markets top 25% of dividend payers in India (1.94%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:532859 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:532859 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 10.00 1.00
2020-03-31 10.00 1.00
2019-03-31 10.00 1.00
BSE:532859 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-02-07 10.000 1.596
2018-11-02 10.000 1.526
2018-08-09 10.000 1.368
2018-02-08 10.000 1.167
2017-08-11 10.000 1.521
2016-08-26 5.000 0.912
2016-02-10 15.000 3.678
2015-11-09 20.000 4.149
2015-08-13 20.000 4.433
2015-05-21 20.000 3.957
2015-02-06 20.000 3.537
2014-12-04 20.000 3.144
2014-08-13 20.000 3.088
2014-06-11 20.000 3.380
2014-05-21 20.000 4.011
2014-02-11 10.000 1.833
2013-11-12 10.000 2.054
2013-07-01 20.000 6.891
2013-05-29 20.000 6.838
2012-07-24 20.000 6.792
2012-05-23 20.000 5.893
2011-07-15 20.000 6.249
2011-05-12 20.000 5.010
2010-08-19 20.000 5.326
2009-05-13 15.000 3.634
2009-04-20 10.000 7.165

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of Hinduja Global Solutions's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (11.4x coverage).
X
Income/ dividend checks
We assess Hinduja Global Solutions's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hinduja Global Solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hinduja Global Solutions has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hinduja Global Solutions's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Partha DeSarkar
COMPENSATION ₹60,185,345
AGE 54
CEO Bio

Mr. Partha DeSarkar serves as the Global Chief Executive Officer and Manager of Hinduja Global Solutions Limited. Mr. DeSarkar served as the President of Hinduja Global Solutions Limited. Mr. DeSarkar served as the Chief Operating Officer of Hinduaja Global Solutions Ltd. for 3 years. He served as the Chief Executive Officer of IT & ITES at Hinduja Ventures Limited (alternate name, Hinduja TMT Ltd.) from May 2006 to March 6, 2007 and served as its Manager from May 1, 2006 to March 6, 2007. He served as the Global Chief Operating Officer of Hinduja Ventures Limited from September 2005 to May 1, 2006. He served as the Head & Chief Operating Officer - IT Enables Services of Hinduja Ventures Limited. He has over 20 years experience in Customer Service and Operations in diverse industries like banking and financial services, healthcare and insurance. He has set up operations for large remote processing centers in India to service international clients in US, UK, Australia and Asia-Pacific regions. He is experienced in starting up and leading complex outsourcing projects in diverse domain areas. In his previous assignments with Deloitte Consulting & GE Capital International Services he has set up large international call centers handling diverse businesses. He worked at Bank of America's - Consumer Banking business for 9 years. He serves as a Director of HTMT Europe Limited. He holds a post graduate diploma in Management from Indian Institute of Management, Bangalore and a Master of Technology degree from IIT Chennai.

CEO Compensation
  • Partha's compensation has increased by more than 20% in the past year.
  • Partha's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Hinduja Global Solutions management team in years:

4.8
Average Tenure
53
Average Age
  • The tenure for the Hinduja Global Solutions management team is about average.
Management Team

Partha DeSarkar

TITLE
Global CEO & Manager
COMPENSATION
₹60M
AGE
54

Pala Palakodeti

TITLE
Global Chief Financial Officer
COMPENSATION
₹32M
TENURE
9.3 yrs

Makarand Dewal

TITLE
Company Secretary
COMPENSATION
₹8M
TENURE
4.8 yrs

Nat Radhakrishnan

TITLE
President & Chief Innovation Officer
AGE
52

Soumen Choudhury

TITLE
Senior Vice President of Operations
TENURE
4 yrs

Jay Menon

TITLE
General Manager of Finance and Accounts

C. Subramanya

TITLE
Global Chief Technology Officer
AGE
50

P. Mohanan

TITLE
General Manager of Administration

Ramalingam Ravi

TITLE
Head of Investor Relations

S. Mahadevan

TITLE
Executive Vice President of Legal
AGE
58
Board of Directors Tenure

Average tenure and age of the Hinduja Global Solutions board of directors in years:

10.5
Average Tenure
64
Average Age
  • The average tenure for the Hinduja Global Solutions board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ramkrishan Hinduja

TITLE
Chairman
COMPENSATION
₹3M
AGE
47
TENURE
11.5 yrs

Shanu S. Hinduja

TITLE
Co-Chairperson
COMPENSATION
₹2M
TENURE
6.1 yrs

AP Hinduja

TITLE
Chairman Emeritus
AGE
67
TENURE
11.5 yrs

Rangan Mohan

TITLE
Independent Director
COMPENSATION
₹4M
TENURE
11.5 yrs

Anil Harish

TITLE
Independent Director
COMPENSATION
₹3M
AGE
64
TENURE
3.6 yrs

Rajendra Chitale

TITLE
Independent Director
COMPENSATION
₹4M
AGE
57
TENURE
12.1 yrs

Vinoo Hinduja

TITLE
Non-Executive Non-Indepedent Director
COMPENSATION
₹2M
AGE
51
TENURE
10.5 yrs

Yashodhan Kale

TITLE
Non-Executive Director
COMPENSATION
₹2M
AGE
71
TENURE
2.6 yrs

Pradeep Mukerjee

TITLE
Independent Director
COMPENSATION
₹2M
TENURE
2.6 yrs

Kailash Samdani

TITLE
Alternate Director
COMPENSATION
₹20K
AGE
78
TENURE
10.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
12. Jun 18 Sell Anthony Joseph Individual 11. Jun 18 11. Jun 18 -2,000 ₹887.20 ₹-1,774,407
03. May 18 Sell Makarand Dewal Individual 27. Apr 18 30. Apr 18 -1,510 ₹970.71 ₹-1,465,772
X
Management checks
We assess Hinduja Global Solutions's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hinduja Global Solutions has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Hinduja Global Solutions Limited (BOM:532859) A Buy At Its Current PE Ratio?

and want to begin learning the link between Hinduja Global Solutions Limited (BOM:532859)’s fundamentals and stock market performance. … Hinduja Global Solutions Limited (BOM:532859) trades with a trailing P/E of 9.7x, which is lower than the industry average of 19.4x. … While 532859 might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

Company Info

Description

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 DigiCX services and solutions, including voice/IVR, email, chat, text, social, self-service, mobile camera support, mobile messaging, and work at home. It also offers business process optimization solutions, such as back-office, human resources outsourcing, and B2B. In addition, the company provides digital transformation services comprising analytics, automation, and digital marketing solutions. Further, it is involved in investment activities; and the provision of customer relationship management programs in the consumer goods and services, e-commerce, telecom and media verticals, as well as contact center, consulting, call center, and offshoring 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.

Details
Name: Hinduja Global Solutions Limited
532859
Exchange: BSE
Founded: 1973
₹13,585,949,540
20,838,944
Website: http://www.teamhgs.com
Address: Hinduja Global Solutions Limited
HGS House,
No. 614, Vajpayee Nagar,
Bengaluru,
Karnataka, 560068,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532859 Equity Shares Mumbai Stock Exchange IN INR 19. Jun 2007
NSEI HGS Equity Shares National Stock Exchange of India IN INR 19. Jun 2007
Number of employees
Current staff
Staff numbers
44,265
Hinduja Global Solutions employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 12:44
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/02/11
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.