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
- PBT LESS OI(Q) At Rs 10.30 cr has Grown at 171.2% (vs previous 4Q average)
- PAT(Q) At Rs 4.59 cr has Grown at 216.9% (vs previous 4Q average)
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 4.86%, 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 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, Medium Return
Absolute
Risk Adjusted
Volatility
Hindware Home In
-12.68%
0.11
45.76%
Sensex
-4.88%
0.44
11.83%
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
173
Industry P/E
47
Price to Book Value
2.84
EV to EBIT
36.38
EV to EBITDA
14.75
EV to Capital Employed
1.87
EV to Sales
1.16
PEG Ratio
1.33
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
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
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