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Hikal Ltd

NSE: HIKAL BSE: 524735

168.48

(1.53%)

Tue, 31 Mar 2026, 07:57 am

Hikal Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (6.3x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (9.1x coverage).
  • Hikal's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Hikal's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Hikal's earnings are expected to grow significantly at over 20% yearly.
  • Hikal's earnings growth is expected to exceed the India market average.
  • Hikal's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Hikal's earnings are expected to exceed the low risk growth rate next year.
  • Hikal's net income is expected to increase by more than 50% in 2 years time.
  • Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
  • An improvement in Hikal's performance (ROE) is expected over the next 3 years.
  • Hikal's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Hikal is expected to increase but not above the 50% threshold in 2 years time.
  • Hikal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Hikal's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Hikal's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Hikal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hikal is profitable, therefore cash runway is not a concern.
  • Hikal is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (36.3%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.2x debt.
  • Hikal's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (103.7% vs 78% today).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
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Cons

  • Hikal's level of debt (78%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Hikal board of directors is over 10 years, this suggests they are a seasoned and experienced board.
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Cons

  • Sameer's remuneration is higher than average for companies of similar size in India.
  • Sameer's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

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Pros

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    Cons

    • Hikal is covered by less than 3 analysts.
    • Hikal has significant price volatility in the past 3 months.

    past

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    Pros

    • Hikal's year on year earnings growth rate has been positive over the past 5 years.
    • Hikal used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
    • Hikal has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • Hikal's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Hikal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Hikal's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.

    value

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    Pros

    • Hikal is good value based on expected growth next year.
    • Hikal is good value based on earnings compared to the IN Pharmaceuticals industry average.
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    Cons

    • Hikal's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Hikal's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Hikal is overvalued based on assets compared to the IN Pharmaceuticals industry average.
    • Hikal is overvalued based on earnings compared to the India market.
    • HIKAL underperformed the Pharmaceuticals industry which returned 26.7% over the past year.
    • HIKAL underperformed the Market in India which returned -14.5% over the past year.
    • NSEI:HIKAL is up 5.1% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
    • NSEI:HIKAL is up 5.1% underperforming the market in India which returned 8% over the past month.

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