Why is Hindware Home Innovation Ltd ?
1
Weak Long Term Fundamental Strength with a -5.06% 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 4.33 times
- The company has been able to generate a Return on Equity (avg) of 7.48% signifying low profitability per unit of shareholders funds
- PBT LESS OI(Q) At Rs -3.84 cr has Fallen at -953.3% (vs previous 4Q average)
- PAT(Q) At Rs -16.41 cr has Fallen at -372.9% (vs previous 4Q average)
- NON-OPERATING INCOME(Q) is 125.81 % of Profit Before Tax (PBT)
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 Diversified consumer products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hindware Home In for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hindware Home In
-19.72%
-0.41
48.55%
Sensex
-8.05%
-0.62
13.07%
Quality key factors
Factor
Value
Sales Growth (5y)
7.16%
EBIT Growth (5y)
-5.06%
EBIT to Interest (avg)
2.27
Debt to EBITDA (avg)
4.05
Net Debt to Equity (avg)
1.11
Sales to Capital Employed (avg)
1.91
Tax Ratio
52.83%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
9.19%
ROCE (avg)
9.16%
ROE (avg)
7.48%
Valuation Key Factors 
Factor
Value
P/E Ratio
157
Industry P/E
349
Price to Book Value
2.58
EV to EBIT
33.91
EV to EBITDA
13.74
EV to Capital Employed
1.75
EV to Sales
1.08
PEG Ratio
1.20
Dividend Yield
NA
ROCE (Latest)
5.15%
ROE (Latest)
1.64%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-9What is not working for the Company
PBT LESS OI(Q)
At Rs -3.84 cr has Fallen at -953.3% (vs previous 4Q average
PAT(Q)
At Rs -16.41 cr has Fallen at -372.9% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 125.81 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Hindware Home In
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -3.84 cr has Fallen at -953.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 0.45 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -16.41 cr has Fallen at -372.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.01 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 125.81 % 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 18.72 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






