ScoreWhy is Hirect Ltd ?
1
Healthy long term growth as Operating profit has grown by an annual rate 41.72%
2
The company has declared Positive results for the last 13 consecutive quarters
- ROCE(HY) Highest at 19.88%
- NET SALES(Q) Highest at Rs 277.39 cr
- CASH AND CASH EQUIVALENTS(HY) Highest at Rs 8.22 cr
3
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 20-May-26 and has generated 1.03% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV
4
With ROCE of 15.7, it has a Very Expensive valuation with a 7.9 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 68.98%, its profits have risen by 59.3% ; the PEG ratio of the company is 1.4
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Hirect should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hirect for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hind Rectifiers
38.83%
0.85
81.59%
Sensex
-11.8%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
24.02%
EBIT Growth (5y)
38.70%
EBIT to Interest (avg)
4.29
Debt to EBITDA (avg)
4.34
Net Debt to Equity (avg)
1.15
Sales to Capital Employed (avg)
1.96
Tax Ratio
31.85%
Dividend Payout Ratio
8.34%
Pledged Shares
6.81%
Institutional Holding
10.07%
ROCE (avg)
13.17%
ROE (avg)
22.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
95
Industry P/E
54
Price to Book Value
18.71
EV to EBIT
72.34
EV to EBITDA
56.68
EV to Capital Employed
9.24
EV to Sales
3.97
PEG Ratio
2.93
Dividend Yield
0.13%
ROCE (Latest)
15.67%
ROE (Latest)
22.29%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CF(Y)
Highest at Rs 90.68 Cr
ROCE(HY)
Highest at 20.31%
DPS(Y)
Highest at Rs 1.40
NET SALES(Q)
At Rs 258.45 cr has Grown at 20.34%
-16What is not working for the Company
PBT LESS OI(Q)
At Rs 3.77 cr has Fallen at -78.90%
PAT(Q)
At Rs 7.45 cr has Fallen at -41.7%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.18 times
INTEREST(Q)
Highest at Rs 4.74 cr
NON-OPERATING INCOME(Q)
is 53.46 % of Profit Before Tax (PBT
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Here's what is working for Hirect
Operating Cash Flow - Annually
Highest at Rs 90.68 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
At Rs 258.45 cr has Grown at 20.34%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Dividend per Share (DPS) - Annually
Highest at Rs 1.40
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Here's what is not working for Hirect
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.77 cr has Fallen at -78.90%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 7.45 cr has Fallen at -41.7%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
Highest at Rs 4.74 cr
in the last five quarters and Increased by 15.89 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 53.46 % 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
Debtors Turnover Ratio- Half Yearly
Lowest at 4.18 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 4.33 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
