Hindustan Hardy (505893)

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 35.45% and ROCE of 28.37% indicate exceptional capital efficiency
• PEG of 0.43 and P/E of 14.03 make growth reasonably priced if 29.51% profit growth sustains
• Sales grew 36.18% and profit grew 29.51%, showing strong recent demand
• Piotroski F-Score of 7/9 suggests solid fundamentals
• Implied earnings yield of roughly 7% at the current P/E is respectable for a fast-growing small cap

Concerns

• Current price ₹600.25 is below the stated 52-week low of ₹665, signaling either a data anomaly or significant adverse market action
• Latest quarter net margin is only about 7.4% (₹2 Cr profit on ₹27 Cr sales), indicating limited pricing power
• Dividend yield of just 0.33% provides negligible income support
• Promoter holding and debt/equity are N/A, so ownership commitment and balance-sheet safety cannot be verified

AI Analysis

Let me think like a businessman. Hindustan Hardy is a tiny auto-component player with a market cap of just ₹92 Cr. At ₹600.25, the trailing P/E of 14.03 gives an earnings yield of about 7%, which is not demanding for a company compounding profits at nearly 30%. Return on equity is exceptional at 35.45%, and ROCE at 28.37% shows management is earning strong returns on both equity and capital employed. A P/B of 3.47 looks expensive against book value of ₹173.04, but with that level of ROE, the premium can be justified if the quality persists. Piotroski score of 7 out of 9 and a PEG of 0.43 reinforce that this is not a deteriorating financial story. But I must be honest: the numbers I can see are not all encouraging. The stated 52-week range is ₹665-₹1350, yet the current price is ₹600.25. That is a red flag—either the data is stale or the stock has broken down sharply. A company with 36% sales growth and 29.5% profit growth should not be sitting below its own 52-week low. The latest quarter shows ₹27 Cr sales but only ₹2 Cr profit, a margin of roughly 7%, so this is not a high-moat business. Dividend yield is a paltry 0.33%, so income-seeking shareholders have nothing to cling to. Debt/equity is listed as N/A, and promoter holding is N/A, meaning I cannot verify the balance sheet or ownership commitment. Without that transparency, a small-cap auto ancillary is risky. I would classify this as a Fast Grower. The growth and ROE are real, but at this price, the market may be smelling something. I'd want to understand the price collapse before investing. Patience and verification first; greed later.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer