ScoreWhy is Hester Biosciences Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.56%
- Poor long term growth as Net Sales has grown by an annual rate of 9.19% and Operating profit at 4.14% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.25 times
2
The company has declared Positive results for the last 8 consecutive quarters
- PAT(Latest six months) At Rs 22.81 cr has Grown at 76.14%
- PBT LESS OI(Q) At Rs 25.18 cr has Grown at 135.33%
- NET SALES(Latest six months) At Rs 177.53 cr has Grown at 22.31%
3
With ROCE of 12.4, it has a Very Expensive valuation with a 3.6 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 40.63%, its profits have risen by 95.3% ; the PEG ratio of the company is 0.4
4
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Hester Bios should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hester Bios for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hester Bios
40.62%
1.02
40.01%
Sensex
-5.96%
-0.44
13.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.19%
EBIT Growth (5y)
4.14%
EBIT to Interest (avg)
5.08
Debt to EBITDA (avg)
3.94
Net Debt to Equity (avg)
0.52
Sales to Capital Employed (avg)
0.55
Tax Ratio
24.20%
Dividend Payout Ratio
16.82%
Pledged Shares
0
Institutional Holding
0.38%
ROCE (avg)
8.83%
ROE (avg)
10.95%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
36
Price to Book Value
4.98
EV to EBIT
29.25
EV to EBITDA
22.88
EV to Capital Employed
3.61
EV to Sales
5.96
PEG Ratio
0.35
Dividend Yield
0.33%
ROCE (Latest)
12.36%
ROE (Latest)
14.91%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
PAT(Latest six months)
At Rs 22.81 cr has Grown at 76.14%
PBT LESS OI(Q)
At Rs 25.18 cr has Grown at 135.33%
NET SALES(Latest six months)
At Rs 177.53 cr has Grown at 22.31%
ROCE(HY)
Highest at 15.11%
DEBT-EQUITY RATIO(HY)
Lowest at 0.54 times
PBDIT(Q)
Highest at Rs 34.33 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 34.29%
-10What is not working for the Company
INTEREST(Q)
At Rs 5.10 cr has Grown at 180.22%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 6.54 cr
Loading Valuation Snapshot...
Here's what is working for Hester Bios
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 25.18 cr has Grown at 135.33%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 14.04 cr has Grown at 988.4%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.54 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
Highest at Rs 100.11 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 100.11 cr has Grown at 22.19%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 34.33 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 34.29%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 25.18 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Hester Bios
Interest - Quarterly
At Rs 5.10 cr has Grown at 180.22%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 6.54 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
