Why is Hindware Home Innovation Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.92 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.92 times
- The company has been able to generate a Return on Equity (avg) of 9.34% signifying low profitability per unit of shareholders funds
2
Positive results in Sep 25
- OPERATING PROFIT TO INTEREST(Q) Highest at 3.29 times
- PAT(Q) At Rs 4.59 cr has Grown at 216.9% (vs previous 4Q average)
- PBT LESS OI(Q) Highest at Rs 10.30 cr.
3
With ROCE of 3.3, it has a Attractive valuation with a 2.1 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 5.62%, its profits have risen by 367.2% ; the PEG ratio of the company is 2.2
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -0.84% over the previous quarter and collectively hold 9.5% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
How much should you hold?
- Overall Portfolio exposure to Hindware Home In should be less than 10%
- Overall Portfolio exposure to Diversified consumer products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified consumer products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hindware Home In for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Hindware Home In
4.08%
0.12
45.76%
Sensex
4.53%
0.45
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
11.99%
EBIT Growth (5y)
28.92%
EBIT to Interest (avg)
2.71
Debt to EBITDA (avg)
3.79
Net Debt to Equity (avg)
1.19
Sales to Capital Employed (avg)
2.06
Tax Ratio
16.87%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
9.50%
ROCE (avg)
10.57%
ROE (avg)
9.34%
Valuation Key Factors 
Factor
Value
P/E Ratio
746
Industry P/E
63
Price to Book Value
3.39
EV to EBIT
62.43
EV to EBITDA
19.68
EV to Capital Employed
2.09
EV to Sales
1.38
PEG Ratio
2.18
Dividend Yield
NA
ROCE (Latest)
3.35%
ROE (Latest)
0.45%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Bullish
No Trend
Technical Movement
25What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.29 times
PAT(Q)
At Rs 4.59 cr has Grown at 216.9% (vs previous 4Q average
PBT LESS OI(Q)
Highest at Rs 10.30 cr.
PBDIT(Q)
Highest at Rs 56.41 cr.
EPS(Q)
Highest at Rs 0.59
-6What is not working for the Company
OPERATING CF(Y)
Lowest at Rs 192.09 Cr
DPR(Y)
Lowest at 0.00%
Loading Valuation Snapshot...
Here's what is working for Hindware Home In
Operating Profit to Interest - Quarterly
Highest at 3.29 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 10.30 cr has Grown at 171.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -14.46 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 4.59 cr has Grown at 216.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -3.93 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 10.30 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 56.41 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.59
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Hindware Home In
Operating Cash Flow - Annually
Lowest at Rs 192.09 Cr
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Dividend Payout Ratio (DPR) - Annually
Lowest at 0.00%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






