ScoreWhy is Hirect Ltd ?
1
High Management Efficiency with a high ROCE of 17.40%
2
Healthy long term growth as Operating profit has grown by an annual rate 38.70%
3
Flat results in Jun 26
- PAT(Latest six months) At Rs 11.96 cr has Grown at -47.46%
- PBT LESS OI(Q) At Rs 3.77 cr has Fallen at -78.90%
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.18 times
4
With ROCE of 15.7, it has a Very Expensive valuation with a 10.5 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 39.37%, its profits have risen by 36.8% ; the PEG ratio of the company is 3.4
5
Consistent Returns over the last 3 years
- Along with generating 39.37% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Hirect should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hirect for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hind Rectifiers
40.31%
0.72
54.59%
Sensex
-5.42%
-0.40
13.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
24.02%
EBIT Growth (5y)
38.70%
EBIT to Interest (avg)
4.29
Debt to EBITDA (avg)
4.34
Net Debt to Equity (avg)
1.15
Sales to Capital Employed (avg)
1.96
Tax Ratio
31.85%
Dividend Payout Ratio
8.34%
Pledged Shares
6.81%
Institutional Holding
10.07%
ROCE (avg)
13.17%
ROE (avg)
22.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
109
Industry P/E
55
Price to Book Value
21.50
EV to EBIT
82.50
EV to EBITDA
64.64
EV to Capital Employed
10.54
EV to Sales
4.53
PEG Ratio
3.36
Dividend Yield
0.11%
ROCE (Latest)
15.67%
ROE (Latest)
22.29%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CF(Y)
Highest at Rs 90.68 Cr
NET SALES(9M)
At Rs 815.66 cr has Grown at 43.41%
ROCE(HY)
Highest at 20.31%
DPS(Y)
Highest at Rs 1.40
-16What is not working for the Company
PAT(Latest six months)
At Rs 11.96 cr has Grown at -47.46%
PBT LESS OI(Q)
At Rs 3.77 cr has Fallen at -78.90%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.18 times
INTEREST(Q)
Highest at Rs 4.74 cr
NON-OPERATING INCOME(Q)
is 53.46 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Hirect
Operating Cash Flow - Annually
Highest at Rs 90.68 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
At Rs 258.45 cr has Grown at 20.34%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Dividend per Share (DPS) - Annually
Highest at Rs 1.40
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Here's what is not working for Hirect
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.77 cr has Fallen at -78.90%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 7.45 cr has Fallen at -41.7%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
Highest at Rs 4.74 cr
in the last five quarters and Increased by 15.89 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 53.46 % 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
Debtors Turnover Ratio- Half Yearly
Lowest at 4.18 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 4.33 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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