Why is Hinduja Global Solutions Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -2.65% and Operating profit at -200.07% over the last 5 years
2
The company has declared Negative results for the last 3 consecutive quarters
- PAT(Q) At Rs -2.64 cr has Fallen at -553.2% (vs previous 4Q average)
- INTEREST(9M) At Rs 174.36 cr has Grown at 20.42%
- NET SALES(Q) Lowest at Rs 1,064.05 cr
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 25-Sep-24 and has generated -43.88% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -47.58%, its profits have fallen by -115.3%
- At the current price, the company has a high dividend yield of 1.5
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -0.9% over the previous quarter and collectively hold 12.21% 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 BPO/ITeS)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hinduja Global for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hinduja Global
-47.43%
-1.32
36.18%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.65%
EBIT Growth (5y)
-200.07%
EBIT to Interest (avg)
1.05
Debt to EBITDA (avg)
4.47
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.89
Tax Ratio
100.00%
Dividend Payout Ratio
24.45%
Pledged Shares
14.23%
Institutional Holding
12.21%
ROCE (avg)
4.08%
ROE (avg)
22.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
33
Price to Book Value
0.27
EV to EBIT
-0.28
EV to EBITDA
0.55
EV to Capital Employed
0.02
EV to Sales
0.02
PEG Ratio
NA
Dividend Yield
1.55%
ROCE (Latest)
-5.42%
ROE (Latest)
0.03%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-13What is not working for the Company
PAT(Q)
At Rs -2.64 cr has Fallen at -553.2% (vs previous 4Q average
INTEREST(9M)
At Rs 174.36 cr has Grown at 20.42%
NET SALES(Q)
Lowest at Rs 1,064.05 cr
DEBT-EQUITY RATIO(HY)
Highest at 0.28 times
NON-OPERATING INCOME(Q)
is 414.01 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Hinduja Global
Profit After Tax (PAT) - Quarterly
At Rs -2.64 cr has Fallen at -553.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 0.58 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 1,064.05 cr and Fallen
each quarter in the last five quartersMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Interest - Nine Monthly
At Rs 174.36 cr has Grown at 20.42%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Net Sales - Quarterly
At Rs 1,064.05 cr has Fallen at -5.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,120.36 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 414.01 % 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
Debt-Equity Ratio - Half Yearly
Highest at 0.28 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 170.82 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income