NSEI:HOVS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


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: HOVS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

HOVS

-4.0%

IN IT

-2.2%

IN Market


1 Year Return

-84.6%

HOVS

-19.9%

IN IT

-30.7%

IN Market

Return vs Industry: HOVS underperformed the Indian IT industry which returned -16.8% over the past year.

Return vs Market: HOVS underperformed the Indian Market which returned -29.6% over the past year.


Shareholder returns

HOVSIndustryMarket
7 Day0.4%-4.0%-2.2%
30 Day-33.8%-19.5%-25.9%
90 Day-51.7%-23.4%-30.5%
1 Year-84.6%-84.6%-17.4%-19.9%-29.3%-30.7%
3 Year-87.4%-87.4%31.0%22.9%-18.8%-23.3%
5 Year-84.3%-84.3%20.5%8.9%-8.7%-13.6%

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

Valuation

Is HOV Services 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: HOVS (₹23.85) is trading below our estimate of fair value (₹63.98)

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


Price To Earnings Ratio

PE vs Industry: HOVS is poor value based on its PE Ratio (71.4x) compared to the IT industry average (7x).

PE vs Market: HOVS is poor value based on its PE Ratio (71.4x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HOVS is good value based on its PB Ratio (0.2x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

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

8.1%

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 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?

62.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOVS has high quality earnings.

Growing Profit Margin: HOVS's current net profit margins (3.7%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: HOVS has become profitable over the past 5 years, growing earnings by 62% per year.

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

Earnings vs Industry: HOVS had negative earnings growth (-42.8%) over the past year, making it difficult to compare to the IT industry average (7.2%).


Return on Equity

High ROE: HOVS's Return on Equity (0.3%) is considered low.


Next Steps

Financial Health

How is HOV Services's financial position?


Financial Position Analysis

Short Term Liabilities: HOVS's short term assets (₹118.5M) exceed its short term liabilities (₹47.4M).

Long Term Liabilities: HOVS's short term assets (₹118.5M) do not cover its long term liabilities (₹303.3M).


Debt to Equity History and Analysis

Debt Level: HOVS's debt to equity ratio (2.1%) is considered satisfactory.

Reducing Debt: HOVS's debt to equity ratio has reduced from 2.5% to 2.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HOVS's debt is covered by short term assets (assets are 4.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HOVS is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: HOVS is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HOVS'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 HOVS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

9.8yrs

Average board tenure


CEO

Vik Negi (43yo)

no data

Tenure

Mr. Vikram Negi, also known as Vik, is a Principal at HGM, LLC. Mr. Negi is a part of the Europe and Asia team. He has been Chairman of HOV Services Limited since May 30, 2019 and its Whole Time Director s ...


Board Members

NamePositionTenureCompensationOwnership
Vikram Negi
Chairman of the Boardno datano data0.50% 1.5m
Surinder Rametra
Executive Director16.92yrsno data0.95% 2.9m
Sunil Rajadhyaksha
Executive Director14yrs₹4.80m4.68% 14.2m
Baldev Gupta
Non-Executive Independent Director14.25yrs₹480.00k0.087% 266.2k
Lakshmi Kumar
Non-Executive Independent Director5.5yrs₹420.00kno data
Harjit Anand
Independent Director1.75yrs₹50.00kno data

9.8yrs

Average Tenure

66yo

Average Age

Experienced Board: HOVS's board of directors are considered experienced (9.8 years average tenure).


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

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


Key Information

  • Name: HOV Services Limited
  • Ticker: HOVS
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹304.653m
  • 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 support services; BPO services; and data entry services. It also provides environment protection solutions. HOV Services Limited was founded in 1989 and is headquartered in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 14:39
End of Day Share Price2020/04/01 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.