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Hikal Ltd share Price Today

Company details

282.60
290.35
250.10
331.20
6M Return 4.29%
1Y Return 0.51%
Mkt Cap.(Cr) 3,510.38
Volume 147,351
Div Yield 0.21%
OI
-
OI Chg %
-
Volume 147,351

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Incur '0' Brokerage upto ₹500
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 & crop protection comprise 54% & 46% of sales, respectively. Pharma business (including animal healthcare) is currently divided into 60:40 ratio between APIs and CDMO
    • In crop protection, ~70% of sales are derived from CDMO while remaining is from proprietary products, specialty chemicals & specialty biocides
    • One of the largest suppliers of Gabapentin API (CNS). In crop protection, one of the largest suppliers of Thiabendazole (TBZ)
Q3FY23 Results

    CDMO project supported the pharma business, margins suffer due to high input costs.

    • Revenue increased 5% YoY to ₹ 540.2 crore
    • EBITDA margins fell 425 YoY bps to 13.8%, steep increase in prices of solvents and utilities impacted the operational performance
    • Adjusted PAT declined 41.5% YoY at ₹ 26.4 crore

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Research view on more stocks

Pharmaceuticals company Hikal announced FY24 results:

Financial Highlights:

  • Revenue of Rs 1,785 crore
  • EBITDA stood at Rs 267 crore
  • PAT stood at Rs 70 crores
  • Recommended a final dividend of Rs 0.60 per share (30% of FV); Total dividend for FY24 stands at Rs 1.2 per share (60% of FV)
  • Hikal’s long term credit rating is maintained at A by ICRA

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal said, “For the FY24, we achieved revenues of Rs 1,785 Crores as compared to Rs 2,023 Crores last year. FY24 was marred with several global macroeconomic pressures and depressed market conditions for the global chemical sector on account of inventory build up and overcapacity across the sector resulting in intense price competition from China predominantly in the Crop Protection market.

Our Board of Directors has recommended a final dividend of Rs 0.60 per share (30%). Along with an interim dividend of Rs 0.60 per share (30%) declared in February 2024, the total dividend for FY24 stands at Rs 1.20 per share (60% of FV).

For Q4FY24, our pharmaceutical business reported revenue growth of 26% to Rs 338 Cr and EBIT growth of 191% to Rs 54 Cr, on QoQ basis. In the API segment, we witnessed increased volume off-take based on higher demand from existing customers and from newer geographies. This coupled with stabilized raw material prices have supported us in maintaining our margin profile. In our CDMO segment we have received several RFP’s from both emerging pharma and global innovators, with several products progressing through the development stages. We have a healthy pipeline of projects in the early to mid-phase that is encouraging. During FY24, our API facility in Panoli, Gujarat, was audited by the US FDA, and the audit was concluded with ‘Zero’ 483 observations as a testament of our commitment to high standards of regulatory compliance.

For Q4FY24, our crop protection business reported revenue of Rs 177 Cr and EBIT of Rs 14 Cr. Despite proactive cost improvement initiatives, the global crop protection industry continues to face significant headwinds, including subdued global demand due to inventory in the channel pipeline and intense price erosion from competitors primarily China as a result of large capacity which are under-utilized. We expect the market to stabilize post the end of this financial year and recovery to begin thereafter.

In our animal health business, advancements in developing a portfolio of products under a long-term agreement with an innovator animal health company are proceeding well. During the third quarter, our new multipurpose animal health facility was commissioned at Panoli, Gujarat. Validation of several products is underway, and it is scheduled to be completed in the upcoming quarters. These validation batches mark the initial phase toward product registration and subsequent commercialization.

Under our strategic transformation initiative - Pinnacle, we have taken substantial strides toward sustaining growth across our various businesses. We have gained momentum in supply chain derisking, developing differentiated capabilities, the acquisition of new customers and the building of a distinctive technology platform. As we navigate through the next stage of our strategic plan, our focus is directed more towards the front-end capitalizing on the opportunities to build a healthy pipeline for our businesses.

Despite the current challenging global conditions, we anticipate a favorable shift in market dynamics over the mid to long term, and we remain focused in our strategy to deliver profitable, and sustainable growth across our businesses.”

Result PDF

View Other Company Results

Hikal Ltd shares SWOT Analysis

Strengths (6)

  • Growth in Net Profit with increasing Profit Margin (QoQ)
  • Increasing Revenue every quarter for the past 3 quarters
  • Increasing profits every quarter for the past 3 quarters

Weakness (10)

  • Inefficient use of capital to generate profits - RoCE declining in the last 2 years
  • Inefficient use of shareholder funds - ROE declining in the last 2 years
  • Inefficient use of assets to generate profits - ROA declining in the last 2 years

Opportunity (0)

Data not found

Threats (3)

  • High PE (PE > 40)
  • Increasing Trend in Non-Core Income
  • RSI indicating price weakness

Resistance and support

R1 289.2
R2 293.6
R3 296.9
Pivot

285.88

S1 281.4
S2 278.1
S3 273.7
EMA SMA
293.3
292.7
291.4
293.9
291.9
292.2
290.2
289.7
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 Divis Laboratories Ltd Zydus Lifesciences Ltd
Price 284.70 1,459.10 1,466.60 4,412.80 1,023.95
% Change -1.57 -1.34 -1.80 -0.79 -1.99
Mcap Cr 3,510.38 350,086.97 118,408.44 117,146.16 103,033.33
Revenue TTM Cr 2,023.03 43,885.68 15,790.60 7,767.51 17,237.40
Net Profit TTM Cr 78.38 8,560.84 2,513.47 1,823.38 1,997.30
PE TTM 51.41 35.44 28.31 73.81 27.28
1 Year Return 0.51 50.66 53.37 26.88 99.97
ROCE 8.20 16.79 14.76 19.30 16.25
ROE 7.12 16.46 10.66 14.89 14.05
INSIDER & INSTITUTIONAL ACTIVITY

Equity Capital: 1,133.47 Cr FV: 2.00

Period MF Net Purchase / (sold) FII Net
LAST 1M 39,641.00 -26,315.30
LAST 3M 112,356.80 -35,490.78
LAST 6M 175,524.06 28,431.26
LAST 12M 275,282.89 115,769.27

Hikal Ltd Information

Stock PE (TTM)
51.41
Promoter Holding
68.85%
Book Value
96.3165
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 May 30, 2024 03:47 PM the closing price of Hikal Ltd was Rs.284.70.

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 May 30, 2024 03:47 PM, the market cap of Hikal Ltd stood at Rs. 3,510.38.

The latest PE ratio of Hikal Ltd as of May 30, 2024 03:47 PM is 51.41

The latest PB ratio of Hikal Ltd as of May 30, 2024 03:47 PM is 0.33

The 52-week high of Hikal Ltd share price is Rs. 331.20 while the 52-week low is Rs. 250.10

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

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