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Hikal Ltd share Price Today

Company details

262.40
272.10
250.10
329.00
6M Return -11.61%
1Y Return 0.95%
Mkt Cap.(Cr) 3,268.09
Volume 260,008
Div Yield 0.45%
OI
-
OI Chg %
-
Volume 260,008

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Sequential recovery but overall print still weak; focus on capex execution…
About The Stock

    Hikal is predominantly a B2B player that provides intermediates and active ingredients to global pharmaceutical, animal health, crop protection and specialty chemical companies.

    • Pharma and crop protection are 58% and 42% of operating revenues, respectively. The pharma business is currently divided in 50:50 ratio of APIs and CDMO. Animal health business accounts for 20-25% of CDMO business
    • In crop protection, 69% revenues are derived from CDMO while remaining is from proprietary products, specialty chemicals & specialty biocides
    • One of the largest suppliers of Gabapentin API (CNS) and in crop protection, one of the largest suppliers of Thiabendazole (TBZ)
Q4FY22

    Muted quarter amid headwinds in pharma and crop protection.

    • Revenues declined 6% YoY to ₹ 502.4 crore
    • EBITDA was at ₹ 61 crore, down 44% YoY with margins at 12.1%
    • Consequent PAT was at ₹ 21 crore (down 59% YoY)

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Pharmaceuticals company Hikal announced Q3FY24 results:

Financial Highlights

  • Revenue: Revenue for the quarter was reported at Rs 448 crore, marking a sequential growth of 3% from the previous quarter.
  • EBITDA: Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at Rs 65 crore. This represents a 13% increase on a quarter-over-quarter basis.
  • PAT: Profit after tax (PAT) reached Rs 16 crore for the quarter, showing a significant increase of 32% from the second quarter.
  • Interim Dividend: The company declared an interim dividend of Rs 0.60 per share, which constitutes 30% of the face value.

Business Segment Performance

  • Pharmaceutical Division: Pharmaceutical sales were reported at Rs 267 crore, contributing significantly to the quarter's revenue.
  • Crop Protection Division: Crop Protection saw revenues of Rs 180 crore for this quarter.

Operational Highlights

  • Margins: Improvements in margins were attributed to the softening of raw material prices and the implementation of business excellence initiatives.
  • Industry Destocking: The Crop Protection Industry experienced continued destocking, impacting the overall demand dynamics.
  • Global Exposure: The company reported notable traction for its newer pharmaceutical product portfolio in geographies such as Japan, Latin America, and the Middle East.
  • New Facilities: A new multipurpose Animal Health Plant at Panoli has been successfully commissioned during this quarter.

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal said, “The global chemical industry continues to witness turbulence on the back of increased inventory levels, higher interest rates and intense price competition. We see prices bottoming out over the next few months and at the same time we can see things improving in the industry going forward.

For Q3FY24, we reported revenues of Rs 448 crore and EBITDA of Rs 65 crore. The softening of raw materials prices coupled with focused cost improvement, lean initiatives and a diversified product mix helped us to improve our margins sequentially on a QoQ basis.

Our pharmaceutical business reported revenues of Rs 267 crore and EBIT of 18 crore for Q3FY24. In the API business, we are seeing traction on the back of improved penetration across different geographies, stabilized prices and signs of recovery in market demand. On the CDMO side, we continue to maintain a strong pipeline of enquiries from several Pharma innovators, and several products are in the advanced stages of development.

For Q3FY24, our crop protection business reported revenue of Rs 180 crore and EBIT of 22 crore. The global crop protection industry continues to experience severe headwinds. Subdued global demand on the back of the destocking situation coupled with intense price competition has impacted the industry. Proactive implementation of cost improvement programs has benefited us this quarter in maintaining the margin profile. Our new multi-purpose facility at Panoli is completed and stabilization of the plant is in progress.

Result PDF

View Other Company Results

Hikal Ltd shares SWOT Analysis

Strengths (8)

  • Growth in Net Profit with increasing Profit Margin (QoQ)
  • Increasing Revenue every quarter for the past 2 quarters
  • Increasing profits every quarter for the past 2 quarters

Weakness (6)

  • MFs decreased their shareholding last quarter
  • Inefficient use of capital to generate profits - RoCE declining in the last 2 years
  • Degrowth in Quarterly Revenue and Profit in Recent Results(YoY)

Opportunity (0)

Data not found

Threats (2)

  • High PE (PE > 40)
  • RSI indicating price weakness

Resistance and support

R1 270.6
R2 276.2
R3 280.3
Pivot

266.52

S1 260.9
S2 256.8
S3 251.2
EMA SMA
274.4
280.7
285.2
292.6
274.3
282.8
285.9
291.2
Delivery and volume
CLIENT NAME DEAL TYPE ACTION DATE AVG. PRICE QUANTITY EXCHANGE
RITU ARUN NATHANI Block Purchase 2023-03-15 297 614385 NSE
CYBAGE SOFTWARE PRIVATE LIMITED Block Sell 2023-03-15 297 614385 NSE
SMALLCAP WORLD FUND INC Bulk Sell 2022-06-29 249.02 2500000 NSE
Name Category Shares
SUGANDHA JAI HIREMATH PROMOTER 7.84%
JAI V HIREMATH PROMOTER 1.09%
KALYANI INVESTMENT COMPANY LIMITED PROMOTER 31.36%
SHRI BADRINATH INVESTMENT PVT LTD PROMOTER 16.15%
SHRI RAMESHWARA INVESTMENT PVT LTD PROMOTER 7.96%
BF INVESTMENT LIMITED PROMOTER 2.65%

OUR RESEARCH VIEW

Investment recommendation
Sequential recovery but overall print still weak; focus on capex execution…
Call Date
03 Feb 2023
Entry Price 335.00
Target Price 375.00
Duration
12-18 Month

FINANCIALS

Sales
Operating Profit
Profit after Tax
Equity
Reserves and Surplus
Debt
Sales
Operating Profit
Profit after Tax
PE
Debt/Equity
P BV

Hikal Ltd Stocks COMPARISON

Financials( in Cr) Hikal Ltd Sun Pharmaceuticals Industries Ltd Cipla Ltd Dr Reddys Laboratories Ltd Zydus Lifesciences Ltd
Price 265.05 1,620.55 1,496.95 6,157.90 1,007.35
% Change -0.41 1.02 2.30 1.88 0.77
Mcap Cr 3,268.09 388,824.23 120,856.26 102,719.31 101,964.37
Revenue TTM Cr 2,023.03 43,885.68 15,790.60 24,669.70 17,237.40
Net Profit TTM Cr 78.38 8,560.84 2,513.47 4,507.30 1,997.30
PE TTM 45.67 41.13 29.93 19.30 30.34
1 Year Return 0.95 64.78 68.33 37.28 109.04
ROCE 8.20 16.79 14.76 25.99 16.25
ROE 7.12 16.46 10.66 21.21 14.05
INSIDER & INSTITUIONAL ACTIVITY

Equity Capital: 1,133.47 Cr FV: 2.00

Period MF Net Purchase / (sold) FII Net
LAST 1M 30,755.54 31,723.05
LAST 3M 69,913.40 26,515.65
LAST 6M 130,081.93 60,306.69
LAST 12M 189,259.39 205,003.99

Hikal Ltd Information

Stock PE (TTM)
45.67
Promoter Holding
68.85%
Book Value
92.8835
ROCE
8.2%
ROE
7.12%
Description
  • Hikal Limited is an Indian company that deals in pharmaceuticals, animal health, crop protection, Biotech, and special chemical products. It has a market capitalisation of Rs. 5369.76 crore as of April 7, 2022. It was incorporated on July 8, 1988 as a manufacturer and marketer of chemicals, dyes, pharmaceuticals, and pesticides. The quarterly revenue for the period of September to December 2021 for Hikal Limited was Rs. 515 crore. The company is listed on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE) under the number 524735 and scrip code HIKAL.

    Hikal has five manufacturing units in India at Taloja and Mahad in Maharashtra, Panoli in Gujarat, and Jigani in Bengaluru. It also has a world-class research and technology institute in Pune. The company operates primarily in the pharmaceutical space (animal health, biotech, and specialty chemicals) and crop protection (pesticides and herbicides). The best-selling products of Hikal Limited include Gabapentin, Thiabendazole, Metoxuron, MCA, PC, MNCB, and wheat herbicide. It also offers solutions to process development, route scouting, analytical method development, technology development, process engineering, and small-scale synthesis.

    The company’s products were earlier marketed by the Japanese company Sumitomo Corporation, which also had an equity stake in Hikal Limited. The company has been granted Export House status by the Indian Government. The company’s manufacturing units in Maharashtra have been certified by the Merck and Co, Inc USA standard. The company has also received the “5-star safety award” from the British Safety Council, UK, for its Taloja site. Hikal has also acquired several chemical manufacturing sites, including an agrochemical manufacturing site from Novartis India Limited in Gujarat and a drug manufacturing facility from Wintac Limited in Bengaluru. In 2001, the company’s export house status was turned into that of a trading house. In 2005, Hikal signed an agreement with the Chinese company Sinochem Corporation, which acquired a 10% stake in the company. The production capacity of the company stood at 4436 MTn for crop protection products and 180 MT for pharmaceutical products.

    As of April 7, 2022, the Hikal Limited share price is Rs. 435.50 at the BSE. Hikal Limited’s price NSE is Rs. 435.95. Hikal shares have given one-year returns of Rs. 168.33% with a dividend yield of 0.46%. The 52-week high of Hikal share price is Rs. 742.00.

    Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

Registered Address

717/718 Maker Chamber V, 7th Floor Nariman Point, Mumbai, Maharashtra, 400021

Tel : 91-022-3926 7100/62770477
Email : info:hikal.com
Website : http://www.hikal.com
Registrar

Universal Capital Sec. Pvt Ltd

AGM Date (Month) : Sep
Face Value Equity Shares : 2
Market Lot Equity Shares : 1
BSE Code : 524735
NSE Code : HIKAL
Book Closure Date (Month) : Sep
BSE Group : A
ISIN : INE475B01022

FAQ’s on Hikal Ltd Shares

You can buy Hikal Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Hikal Ltd Share.

Company share prices and volatile and keep changing according to the market conditions. As of Mar 28, 2024 03:58 PM the closing price of Hikal Ltd was ₹ 265.05.

Market capitalization or market cap is determined by multiplying the current market price of a company’s shares with the total number of shares outstanding. As of Mar 28, 2024 03:58 PM, the market cap of Hikal Ltd stood at ₹ 3,268.09.

The latest PE ratio of Hikal Ltd as of Mar 28, 2024 03:58 PM is 45.67

The latest PB ratio of Hikal Ltd as of Mar 28, 2024 03:58 PM is 0.35

The 52-week high of Hikal Ltd share price is ₹ 329.00 while the 52-week low is ₹ 250.10

According to analyst recommendations, Hikal Ltd Share has a “Buy” rating for the long term.

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