The Hi-Tech Gears Ltd (HITECHGEAR) 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

Frontier Springs

Alicon Cast.

India Motor Part

RACL Geartech

Bharat Seats

GNA Axles

Auto.Corp.of Goa

The Hi-Tech Gear

Precision Camshf

Igarashi Motors

Kross Ltd

Why is The Hi-Tech Gears Ltd ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.28%

Poor long term growth as Net Sales has grown by an annual rate of 8.04% and Operating profit at 16.49% over the last 5 years

Flat results in Sep 25

PAT(9M) At Rs 21.73 cr has Grown at -47.78%
PBT LESS OI(Q) At Rs 7.23 cr has Fallen at -24.1% (vs previous 4Q average)
ROCE(HY) Lowest at 9.24%

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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -25.54% returns

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 Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Hi-Tech Gear for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Hi-Tech Gear

-25.54%

-0.56

45.58%

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)

8.04%

EBIT Growth (5y)

16.49%

EBIT to Interest (avg)

2.46

Debt to EBITDA (avg)

3.17

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.31

Tax Ratio

37.98%

Dividend Payout Ratio

23.28%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

8.72%

ROE (avg)

7.28%

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

2.52

EV to EBIT

29.06

EV to EBITDA

12.37

EV to Capital Employed

2.17

EV to Sales

1.61

PEG Ratio

Dividend Yield

0.75%

ROCE (Latest)

7.46%

ROE (Latest)

5.73%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

9What is working for the Company

OPERATING CF(Y)

Highest at Rs 149.04 Cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.36 times

OPERATING PROFIT TO INTEREST(Q)

Highest at 7.79 times

DPS(Y)

Highest at Rs 5.00

DPR(Y)

Highest at 19.83%

-14What is not working for the Company

PAT(9M)

At Rs 21.73 cr has Grown at -47.78%

PBT LESS OI(Q)

At Rs 7.23 cr has Fallen at -24.1% (vs previous 4Q average

ROCE(HY)

Lowest at 9.24%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 30.40 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.04 times

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Here's what is working for The Hi-Tech Gear

Operating Cash Flow - Annually

Highest at Rs 149.04 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)

Operating Profit to Interest - Quarterly

Highest at 7.79 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio - Half Yearly

Lowest at 0.36 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

Dividend per Share (DPS) - Annually

Highest at Rs 5.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 19.83%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for The Hi-Tech Gear

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 7.23 cr has Fallen at -24.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 9.53 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 12.01 cr has Grown at -49.50%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 30.40 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 5.04 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio