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Hinduja Global SolutionsBSE:532859 Stock Report

Market Cap

₹59.5b

7D

-5.3%

1Y

306.5%

Updated

24 Sep, 2021

Data

Company Financials
532859 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends3/6

532859 Overview

Hinduja Global Solutions Limited provides business process management services in the United States, Canada, Europe, India, and internationally.

Hinduja Global Solutions Competitors

Tata Consultancy Services

NSEI:TCS

₹14.3t

HCL Technologies

NSEI:HCLTECH

₹3.7t

Tech Mahindra

NSEI:TECHM

₹1.3t

Accenture

NYSE:ACN

US$212.2b

Price History & Performance

Summary of all time highs, changes and price drops for Hinduja Global Solutions
Historical stock prices
Current Share Price₹2,850.15
52 Week High₹650.00
52 Week Low₹3,529.00
Beta0.79
1 Month Change0.24%
3 Month Change16.77%
1 Year Change306.53%
3 Year Change329.76%
5 Year Change446.37%
Change since IPO388.88%

Recent News & Updates

Shareholder Returns

532859IN ITIN Market
7D-5.3%1.3%0.3%
1Y306.5%84.2%71.8%

Return vs Industry: 532859 exceeded the Indian IT industry which returned 84.2% over the past year.

Return vs Market: 532859 exceeded the Indian Market which returned 71.8% over the past year.

Price Volatility

Is 532859's price volatile compared to industry and market?
532859 volatility
532859 Beta0.79
Industry Beta0.66
Market Beta1

Stable Share Price: 532859 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 532859's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197339,889Partha DeSarkarhttps://hgs.cx

Hinduja Global Solutions Limited provides business process management services in the United States, Canada, Europe, India, and internationally. It provides consumer facing services, such as consumer engagement, work at home, HGS work cloud solutions; business process optimization solutions, such as back-office, human resources outsourcing, and B2B services; and contact center transformation solutions, such as cognitive contact center, and contact center for analytics and intelligence. The company also offers digital solutions, including digital experience, automation, analytics, and cloud services; and healthcare services, such as enrollment, member engagement management, mailroom automation, provider and broker, and custom solutions consulting services.

Hinduja Global Solutions Fundamentals Summary

How do Hinduja Global Solutions's earnings and revenue compare to its market cap?
532859 fundamental statistics
Market Cap₹59.51b
Earnings (TTM)₹4.05b
Revenue (TTM)₹59.04b

14.7x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
532859 income statement (TTM)
Revenue₹59.04b
Cost of Revenue₹40.14b
Gross Profit₹18.90b
Expenses₹14.85b
Earnings₹4.05b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)194.02
Gross Margin32.01%
Net Profit Margin6.86%
Debt/Equity Ratio51.7%

How did 532859 perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

13%

Payout Ratio

Valuation

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

21.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532859 (₹2850.15) is trading below our estimate of fair value (₹3625.72)

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 (14.7x) compared to the Indian IT industry average (31.4x).

PE vs Market: 532859 is good value based on its PE Ratio (14.7x) compared to the Indian market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532859's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532859 is overvalued based on its PB Ratio (2.9x) compared to the IN IT industry average (2.2x).


Future Growth

How is Hinduja Global Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.1%

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 Hinduja Global Solutions 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.


Past Performance

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

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532859 has high quality earnings.

Growing Profit Margin: 532859's current net profit margins (6.9%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 532859's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: 532859's earnings growth over the past year (113.6%) exceeds its 5-year average (13.8% per year).

Earnings vs Industry: 532859 earnings growth over the past year (113.6%) exceeded the IT industry 19.6%.


Return on Equity

High ROE: 532859's Return on Equity (19.4%) is considered low.


Financial Health

How is Hinduja Global Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: 532859's short term assets (₹25.1B) exceed its short term liabilities (₹11.8B).

Long Term Liabilities: 532859's short term assets (₹25.1B) exceed its long term liabilities (₹10.8B).


Debt to Equity History and Analysis

Debt Level: 532859's debt to equity ratio (51.7%) is considered high.

Reducing Debt: 532859's debt to equity ratio has reduced from 63.2% to 51.7% over the past 5 years.

Debt Coverage: 532859's debt is well covered by operating cash flow (64.2%).

Interest Coverage: 532859's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

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

0.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532859's dividend (0.98%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: 532859's dividend (0.98%) is low compared to the top 25% of dividend payers in the Indian market (1.45%).


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 (13.4%), 532859'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

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

2.4yrs

Average management tenure


CEO

Partha DeSarkar (58 yo)

no data

Tenure

₹173,182,554

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 ($USD2.35M) is above average for companies of similar size in the Indian market ($USD368.78K).

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


Leadership Team

Experienced Management: 532859's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: 532859's board of directors are not considered experienced ( 2 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: 532859 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Hinduja Global Solutions Limited's 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: ₹59.514b
  • Shares outstanding: 20.88m
  • Website: https://hgs.cx

Number of Employees


Location

  • Hinduja Global Solutions Limited
  • Gold Hill Square Park, No. 690
  • 1st Floor
  • Bengaluru
  • Karnataka
  • 560068
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 15:38
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.