Hind Rectifiers (HIRECT)

FairStock Score: 34/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Ordinarily, I get interested when a good business is priced reasonably. Hind Rectifiers shows some good operating signs: ROE 36.86%, ROCE 21.60%, 5-year revenue CAGR 25.49%, sales growth 20.30%, and a Piotroski F-Score of 7/9. Latest quarter sales were ₹243 Cr and net profit ₹14 Cr. But I must ask what I am paying. At ₹1,256, market cap ₹4,317 Cr, P/E 96.17, P/B 20.70 against book value ₹60.69. That is not a bargain; it demands exceptional future compounding. Meanwhile profit growth is -26.70%, so recent sales growth is not flowing to the bottom line. Debt/equity 1.19 is high for an industrial products business, and dividend yield 0.11% gives almost no cash return. Promoter holding 43.93% is acceptable but not overwhelming. The 52-week range of ₹565.20 to ₹1,379.15 shows violent market swings. A FairStock score of 34/100 labeled risky confirms the margin of safety is thin. PEG 1.01 might look reasonable if growth returns, but with negative profit growth I cannot rely on that. Moat? I see no evidence of pricing power; a latest-quarter net margin of about 5.76% (₹14 Cr on ₹243 Cr) suggests thin profitability that can vanish if costs rise. This may be a fast-growing industrial, but at 96 times earnings and 20.7 times book, Mr. Market already celebrates it. I would watch debt reduction, profit growth turning positive, ROE/ROCE sustainability, and whether sales growth converts into earnings. For now, I prefer a watchlist over paying up.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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