Why is Hindware Home Innovation Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.75 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.75 times
2
Poor long term growth as Operating profit has grown by an annual rate -8.52% of over the last 5 years
3
The company has declared Negative results for the last 11 consecutive quarters
- PAT(Q) At Rs -17.75 cr has Fallen at -516.1% (vs previous 4Q average)
- ROCE(HY) Lowest at 6.02%
- NET SALES(Q) At Rs 594.23 cr has Fallen at -11.8% (vs previous 4Q average)
4
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 20-Dec-24 and has generated -30.49% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.43% over the previous quarter and collectively hold 11.08% 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 Consumer durables)
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, Low Return
Absolute
Risk Adjusted
Volatility
Hindware Home In
-45.85%
-0.98
47.35%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
14.20%
EBIT Growth (5y)
-8.52%
EBIT to Interest (avg)
2.51
Debt to EBITDA (avg)
3.40
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
2.34
Tax Ratio
26.93%
Dividend Payout Ratio
11.22%
Pledged Shares
0
Institutional Holding
11.08%
ROCE (avg)
10.92%
ROE (avg)
11.57%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
57
Price to Book Value
2.87
EV to EBIT
82.12
EV to EBITDA
17.17
EV to Capital Employed
1.67
EV to Sales
1.04
PEG Ratio
NA
Dividend Yield
0.17%
ROCE (Latest)
3.35%
ROE (Latest)
-2.00%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-19What is not working for the Company
PAT(Q)
At Rs -17.75 cr has Fallen at -516.1% (vs previous 4Q average
ROCE(HY)
Lowest at 6.02%
NET SALES(Q)
At Rs 594.23 cr has Fallen at -11.8% (vs previous 4Q average
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 5.91 cr
DEBT-EQUITY RATIO(HY)
Highest at 1.83 times
PBDIT(Q)
Lowest at Rs 28.43 cr.
PBT LESS OI(Q)
Lowest at Rs -24.48 cr.
EPS(Q)
Lowest at Rs -2.46
Loading Valuation Snapshot...
Here's what is not working for Hindware Home In
Profit After Tax (PAT) - Quarterly
At Rs -17.75 cr has Fallen at -516.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -2.88 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 594.23 cr has Fallen at -11.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 674.09 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Lowest at Rs -17.75 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 594.23 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 28.43 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -24.48 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs -2.46
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 5.91 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Highest at 1.83 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