Executive Summary
Hinduja Global Solutions Limited provides business process management services in the United States, Canada, Europe, Asia, and the Middle East.
Rewards
Risk Analysis
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: HGS's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.1%
HGS
1.3%
IN IT
-0.6%
IN Market
1 Year Return
46.9%
HGS
9.5%
IN IT
11.1%
IN Market
Return vs Industry: HGS exceeded the Indian IT industry which returned 9.5% over the past year.
Return vs Market: HGS exceeded the Indian Market which returned 11.1% over the past year.
Shareholder returns
| HGS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.1% | 1.3% | -0.6% |
| 30 Day | 36.2% | 2.4% | -0.5% |
| 90 Day | 48.0% | 6.4% | 3.0% |
| 1 Year | 50.8%46.9% | 12.4%9.5% | 13.1%11.1% |
| 3 Year | 52.8%44.4% | 75.5%65.2% | 24.5%18.0% |
| 5 Year | 68.5%50.1% | 57.1%42.6% | 37.8%25.7% |
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
5 days ago | Simply Wall St
Hinduja Global Solutions Limited (NSE:HGS) Passed Our Checks, And It's About To Pay A ₹15.00 Dividend1 week ago | Simply Wall St
Do You Know About Hinduja Global Solutions Limited’s (NSE:HGS) ROCE?3 weeks ago | Simply Wall St
Does Hinduja Global Solutions Limited's (NSE:HGS) P/E Ratio Signal A Buying Opportunity?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: HGS (₹888.15) is trading below our estimate of fair value (₹1920.54)
Significantly Below Fair Value: HGS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HGS is good value based on its PE Ratio (9.3x) compared to the IT industry average (11.2x).
PE vs Market: HGS is good value based on its PE Ratio (9.3x) compared to the Indian market (13.3x).
Price to Earnings Growth Ratio
PEG Ratio: HGS is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: HGS 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: HGS's forecast earnings growth (10.4% per year) is above the savings rate (6.5%).
Earnings vs Market: HGS's earnings (10.4% per year) are forecast to grow slower than the Indian market (21.5% per year).
High Growth Earnings: HGS's earnings are forecast to grow, but not significantly.
Revenue vs Market: HGS's revenue (10.4% per year) is forecast to grow faster than the Indian market (9% per year).
High Growth Revenue: HGS'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 HGS'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: HGS has high quality earnings.
Growing Profit Margin: HGS's current net profit margins (3.8%) are higher than last year (3.7%).
Past Earnings Growth Analysis
Earnings Trend: HGS's earnings have grown by 7.2% per year over the past 5 years.
Accelerating Growth: HGS's earnings growth over the past year (19.5%) exceeds its 5-year average (7.2% per year).
Earnings vs Industry: HGS earnings growth over the past year (19.5%) exceeded the IT industry 7.2%.
Return on Equity
High ROE: HGS'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: HGS's short term assets (₹17.3B) exceed its short term liabilities (₹9.5B).
Long Term Liabilities: HGS's short term assets (₹17.3B) exceed its long term liabilities (₹12.2B).
Debt to Equity History and Analysis
Debt Level: HGS's debt to equity ratio (28.2%) is considered satisfactory.
Reducing Debt: HGS's debt to equity ratio has reduced from 39.2% to 28.2% over the past 5 years.
Debt Coverage: HGS's debt is well covered by operating cash flow (114.2%).
Interest Coverage: HGS's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Inventory Level: HGS has a high level of physical assets or inventory.
Debt Coverage by Assets: HGS'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
Current dividend yield vs market & industry
Notable Dividend: HGS's dividend (2.54%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).
High Dividend: HGS'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: HGS's dividend payments have been volatile in the past 10 years.
Growing Dividend: HGS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.5%), HGS'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?
0.8yrs
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 0yrs | ₹77.45m | 0.24% ₹44.3m | |
| Global Chief Financial Officer | 10.1yrs | ₹41.60m | 0.084% ₹15.5m | |
| President & Global Chief Innovation Officer | 0.8yrs | no data | no data | |
| Senior Vice President of Operations | 4.8yrs | no data | no data | |
| General Manager of Finance and Accounts | 0yrs | no data | no data | |
| Global Chief Technology Officer | 0yrs | no data | 0.043% ₹7.8m | |
| General Manager of Administration | 0yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Executive VP of Legal | 0.3yrs | no data | 0.036% ₹6.6m | |
| SVP of Global Corporate Communications | 0.8yrs | no data | no data |
0.8yrs
Average Tenure
54.5yo
Average Age
Experienced Management: HGS's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 0yrs | ₹77.45m | 0.24% ₹44.3m | |
| Additional Director & Independent Director | 0.4yrs | no data | no data | |
| Independent Director | 4.4yrs | ₹6.40m | no data | |
| Chairman Emeritus | 12.3yrs | no data | 4.37% ₹801.5m | |
| Non-Executive Chairman | 0.4yrs | ₹3.62m | no data | |
| Additional Independent Director | 0.4yrs | no data | no data | |
| Additional Director & Non-Executive Non-Independent Director | 0.4yrs | no data | no data |
0.4yrs
Average Tenure
61yo
Average Age
Experienced Board: HGS'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: HGS
- Exchange: NSEI
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532859 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jun 2007 |
| HGS | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 13:05 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.