HRH Next (HRHNEXT)

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

Key Financials

AI Analysis

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

At ₹31.65, HRH Next is a tiny ₹33-crore BPO/KPO player. The first thing that catches my Graham-trained eye is the P/E of 10.47 and a PEG of 1.20. That is not demanding, provided earnings are dependable. Sales grew 11% but profit only 1.96%; that gap tells me this is not a wide-moat business. In outsourcing, pricing power is weak and margins can be squeezed by clients for whom India is a low-cost solution. The ROCE of 15.33% is respectable, and the Piotroski F-Score of 7/9 suggests the company is not faking health. But I cannot compute book value, ROE, or debt-to-equity because they are not disclosed. As Graham would say, you cannot value what you cannot see. The latest quarter shows sales of ₹32 crore and net profit of ₹2 crore; a 6% net margin, okay for BPO, but not exciting. Promoter holding of 55.59% is good—their interests are aligned with mine. Yet there is zero dividend; for a small shareholder, the only return is potential price appreciation or eventual payout. Given 11% topline growth and near-flat bottom line, this looks like a slow grower with cyclical risk. I would need to know the debt situation, client concentration, and why profit growth lags so far behind sales. At a ₹33-crore market cap, institutional investors will ignore it, and liquidity may be thin. The margin of safety depends on whether the profit growth can reaccelerate. I would keep it on the watchlist, not act today.

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