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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Venus Remedies

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Jagsonpal Pharma

Bajaj Healthcare

Sigachi Indust.

Hester Bios

Themis Medicare

Why is Hester Biosciences Ltd ?

Weak Long Term Fundamental Strength with a -0.36% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.73 times
The company has been able to generate a Return on Capital Employed (avg) of 9.10% signifying low profitability per unit of total capital (equity and debt)

With ROCE of 7.7, it has a Very Expensive valuation with a 3 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 -36.54%, its profits have risen by 86.8% ; the PEG ratio of the company is 0.4

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 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, Low Return

Absolute

Risk Adjusted

Volatility

Hester Bios

-36.54%

-0.77

47.51%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.86%

EBIT Growth (5y)

-0.36%

EBIT to Interest (avg)

5.89

Debt to EBITDA (avg)

3.87

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.55

Tax Ratio

17.96%

Dividend Payout Ratio

21.66%

Pledged Shares

Institutional Holding

0.53%

ROCE (avg)

9.34%

ROE (avg)

11.93%

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

4.15

EV to EBIT

38.50

EV to EBITDA

27.36

EV to Capital Employed

2.96

EV to Sales

5.36

PEG Ratio

0.37

Dividend Yield

0.42%

ROCE (Latest)

7.69%

ROE (Latest)

12.97%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

19What is working for the Company

OPERATING CF(Y)

Highest at Rs 64.51 Cr

ROCE(HY)

Highest at 10.91%

DEBT-EQUITY RATIO(HY)

Lowest at 0.63 times

PAT(Q)

At Rs 14.45 cr has Grown at 76.2%

-12What is not working for the Company

PBT LESS OI(Q)

At Rs 7.31 cr has Fallen at -27.12%

INTEREST(9M)

At Rs 9.64 cr has Grown at 35.97%

NET SALES(Q)

At Rs 70.97 cr has Fallen at -15.20%

NON-OPERATING INCOME(Q)

is 57.10 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Hester Bios

Operating Cash Flow - Annually

Highest at Rs 64.51 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 14.45 cr has Grown at 76.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.63 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

Here's what is not working for Hester Bios

Interest - Latest six months

At Rs 4.02 cr has Grown at 122.10%

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 7.31 cr has Fallen at -27.12%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 70.97 cr has Fallen at -15.20%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 57.10 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 9.73 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income