⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HSCL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | HSCL | Market Cap | 22,881 Cr. | Current Price | 453 ₹ | High / Low | 534 ₹ |
| Stock P/E | 31.7 | Book Value | 79.2 ₹ | Dividend Yield | 0.13 % | ROCE | 22.6 % |
| ROE | 16.8 % | Face Value | 1.00 ₹ | DMA 50 | 460 ₹ | DMA 200 | 465 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | -0.12 % | PAT Qtr | 195 Cr. | PAT Prev Qtr | 187 Cr. |
| RSI | 48.0 | MACD | -5.43 | Volume | 18,01,819 | Avg Vol 1Wk | 18,66,720 |
| Low price | 351 ₹ | High price | 534 ₹ | PEG Ratio | 0.30 | Debt to equity | 0.20 |
| 52w Index | 55.6 % | Qtr Profit Var | 37.1 % | EPS | 14.5 ₹ | Industry PE | 35.6 |
📊 Core Financials
- Quarterly PAT rose from ₹187 Cr. to ₹195 Cr. (~4% sequential growth, ~37.1% YoY growth).
- ROE: 16.8% → decent profitability.
- ROCE: 22.6% → strong capital efficiency.
- Debt-to-equity: 0.20 → low leverage, financially stable.
- Dividend Yield: 0.13% → minimal shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 31.7 vs Industry PE 35.6 → fairly valued compared to peers.
- P/B Ratio: 5.7 (Current Price ₹453 / Book Value ₹79.2) → moderately expensive relative to assets.
- PEG Ratio: 0.30 → attractive, suggests earnings growth supports valuation.
- Intrinsic Value: Current price near fair value, offering moderate upside potential.
🏢 Business Model & Competitive Advantage
- HSCL operates in chemicals and materials, serving industrial and consumer markets.
- Business model relies on diversified product portfolio and strong domestic demand.
- Competitive advantage: Established brand, efficient operations, and growing profitability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹430–₹450 (close to support levels, RSI at 48 indicates neutral momentum).
- Long-Term Holding: Suitable for investors seeking exposure to chemicals sector growth, with moderate risk-reward balance.
✅ Positive
- Strong quarterly profit growth (~37.1% YoY).
- Healthy ROCE (22.6%) and ROE (16.8%).
- Low debt-to-equity ratio (0.20) ensures financial stability.
⚠️ Limitation
- Dividend yield is very low (0.13%).
- P/B ratio indicates moderate overvaluation relative to assets.
- DII holdings decreased (-0.12%), showing reduced domestic institutional support.
📉 Company Negative News
- Stock trading below 200 DMA (₹465), indicating weak long-term momentum.
- MACD at -5.43 signals bearish technical trend.
📈 Company Positive News
- Quarterly PAT increased from ₹187 Cr. to ₹195 Cr.
- FII holdings increased slightly (+0.01%), showing marginal foreign investor confidence.
🌐 Industry
- Chemicals industry PE at 35.6, slightly higher than HSCL’s 31.7, showing relative undervaluation.
- Industry growth driven by demand in construction, consumer goods, and industrial applications.
🔎 Conclusion
- HSCL is fundamentally strong with solid profitability, low debt, and improving earnings.
- Valuation is fair compared to peers, offering moderate upside potential.
- Best strategy: Accumulate near ₹430–₹450 and hold long-term to benefit from growth in the chemicals sector.