Why is Hind Rectifiers Ltd ?
1
With ROCE of 20.9, it has a Very Expensive valuation with a 7.3 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 78.14%, its profits have risen by 62.8% ; the PEG ratio of the company is 0.8
2
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
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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hind Rectifiers for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hind Rectifiers
78.14%
1.39
56.09%
Sensex
2.56%
0.21
12.34%
Quality key factors
Factor
Value
Sales Growth (5y)
23.13%
EBIT Growth (5y)
37.44%
EBIT to Interest (avg)
4.71
Debt to EBITDA (avg)
4.54
Net Debt to Equity (avg)
0.96
Sales to Capital Employed (avg)
1.92
Tax Ratio
25.18%
Dividend Payout Ratio
9.21%
Pledged Shares
6.81%
Institutional Holding
6.34%
ROCE (avg)
12.02%
ROE (avg)
24.97%
Valuation Key Factors 
Factor
Value
P/E Ratio
49
Industry P/E
42
Price to Book Value
13.33
EV to EBIT
32.59
EV to EBITDA
28.43
EV to Capital Employed
7.30
EV to Sales
3.00
PEG Ratio
0.79
Dividend Yield
0.14%
ROCE (Latest)
20.90%
ROE (Latest)
24.97%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
24What is working for the Company
PAT(9M)
At Rs 41.25 cr has Grown at 52.05%
ROCE(HY)
Highest at 19.88%
NET SALES(9M)
Higher at Rs 719.31 cr
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 8.22 cr
PBT LESS OI(Q)
At Rs 16.39 cr has Grown at 26.47%
-4What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 1.09 times
INTEREST(Q)
Highest at Rs 4.71 cr
Loading Valuation Snapshot...
Here's what is working for Hind Rectifiers
Net Sales - Quarterly
Highest at Rs 277.39 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 277.39 cr has Grown at 64.19%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 16.39 cr has Grown at 26.47%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 13.76 cr has Grown at 37.5%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 8.22 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Hind Rectifiers
Interest - Quarterly
At Rs 4.71 cr has Grown at 32.30%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Interest - Quarterly
Highest at Rs 4.71 cr
in the last five quarters and Increased by 32.30 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 1.09 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






