Hester Biosciences Ltd (HESTERBIO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fredun Pharma

NGL Fine Chem

Venus Remedies

Sakar Healthcare

Windlas Biotech

Ind-Swift Labs.

Solara Active

Hester Bios

Indoco Remedies

Panacea Biotec

Sai Parenteral's

Why is Hester Biosciences Ltd ?

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 6.78% and Operating profit at 1.42% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.25 times

Flat results in Jun 26

INTEREST(Latest six months) At Rs 8.18 cr has Grown at 102.98%
PBT LESS OI(Q) At Rs 14.69 cr has Fallen at -17.80%
DPR(Y) Lowest at 16.82%

With ROCE of 12.4, it has a Very Expensive valuation with a 4.1 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 20.31%, its profits have risen by 41.1% ; the PEG ratio of the company is 0.9

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 Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hester Bios for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hester Bios

20.31%

0.49

41.75%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.78%

EBIT Growth (5y)

1.42%

EBIT to Interest (avg)

4.51

Debt to EBITDA (avg)

3.94

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

0.55

Tax Ratio

12.97%

Dividend Payout Ratio

16.82%

Pledged Shares

Institutional Holding

0.32%

ROCE (avg)

8.83%

ROE (avg)

10.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.69

EV to EBIT

34.52

EV to EBITDA

25.86

EV to Capital Employed

4.08

EV to Sales

6.87

PEG Ratio

0.94

Dividend Yield

0.46%

ROCE (Latest)

12.36%

ROE (Latest)

14.91%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

PAT(Latest six months)

At Rs 29.83 cr has Grown at 68.22%

ROCE(HY)

Highest at 15.11%

DEBT-EQUITY RATIO(HY)

Lowest at 0.54 times

EPS(Q)

Highest at Rs 113.96

-9What is not working for the Company

INTEREST(Latest six months)

At Rs 8.18 cr has Grown at 102.98%

PBT LESS OI(Q)

At Rs 14.69 cr has Fallen at -17.80%

DPR(Y)

Lowest at 16.82%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 6.54 cr

NET SALES(Q)

At Rs 77.24 cr has Grown at -8.17%

Loading Valuation Snapshot...

Here's what is working for Hester Bios

Profit After Tax (PAT) - Latest six months

At Rs 29.83 cr has Grown at 68.22%

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 periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Earnings per Share (EPS) - Quarterly

Highest at Rs 113.96

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Hester Bios

Interest - Latest six months

At Rs 8.18 cr has Grown at 102.98%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 14.69 cr has Fallen at -17.80%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 77.24 cr has Grown at -8.17%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 6.54 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio (DPR) - Annually

Lowest at 16.82%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)