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Hind Rectifiers Ltd

HIRECTIndustrial Products

Fundamental Score

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Hind Rectifiers Ltd Share Price & Market Analysis

Current Market Price (CMP)
1460.10
No change data available
Market Cap
2.59K (Cr)
Industry
Industrial Products

Profitability Metrics

Excellent

Return on Equity

25.72%
Excellent

Return on Capital Employed

21.60%
Poor

Operating Profit Margin (5Y)

7.88%
Poor

Dividend Yield

0.13%

Valuation Metrics

Poor

Price to Earnings

54.17x

Market Capitalization

2.59K (Cr)

Industry P/E

33.94x

Growth Metrics

Excellent

YoY Quarterly Profit Growth

44.75%
Excellent

YoY Quarterly Sales Growth

36.96%
Excellent

Sales Growth (5Y)

16.95%
Excellent

EPS Growth (5Y)

13.84%
Excellent

Profit Growth (5Y)

14.65%

Financial Health

Poor

Debt to Equity

1.09x
Excellent

Interest Coverage

5.77x
Excellent

Free Cash Flow (5Y)

62.68 (Cr)

Ownership Structure

Average

Promoter Holding

43.93%
Average

FII Holding

6.64%
Poor

DII Holding

0.13%
Good

Pledged Percentage

6.81%
Market-cap Classification
Small-cap
Higher growth potential with higher volatility.
43.93%
Promoter Holding
2.59K (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of HIRECT across key market metrics for learning purposes.

Positive Indicators

7 factors identified

Strong Return on Equity (25.72%)

Observation: Efficient use of shareholders' capital generating superior returns.

Analysis: ROE >15% indicates strong profitability and effective management. This metric suggests the company can generate substantial returns on invested capital.

Excellent ROCE Performance (21.60%)

Observation: Superior returns on capital employed across business operations.

Analysis: ROCE >15% demonstrates efficient capital deployment and strong operational performance. This indicates quality business fundamentals.

Robust Profit Growth (44.75%)

Observation: Strong year-over-year profit expansion demonstrates business momentum.

Analysis: Profit growth >20% indicates effective execution and market opportunity capture. This suggests positive business trajectory.

Strong Revenue Growth (36.96%)

Observation: Healthy sales growth indicates market demand and execution capability.

Analysis: Revenue growth >15% suggests strong market position and growth potential. This indicates business expansion success.

Consistent Growth Track Record (16.95% CAGR)

Observation: Strong 5-year sales compound annual growth rate.

Analysis: Consistent sales CAGR >12% demonstrates sustainable growth model and market opportunity execution over time.

Strong Interest Coverage (5.77x)

Observation: Earnings comfortably cover interest obligations.

Analysis: Interest coverage >5x indicates low financial distress risk and strong debt servicing capability.

Strong Cash Generation (₹62.68 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Risk Factors

5 factors identified

Premium Valuation Risk (P/E: 54.17x)

Observation: High valuation multiples may limit upside potential.

Analysis: Elevated P/E ratios require strong growth execution to justify current valuations. Consider entry timing carefully.

Elevated Debt Levels (D/E: 1.09)

Observation: High leverage increases financial risk and interest burden.

Analysis: High debt-to-equity ratios require monitoring of debt servicing capability and cash flow generation.

Limited Institutional Interest (FII+DII: 6.77%)

Observation: Low institutional participation may affect liquidity and visibility.

Analysis: Limited institutional interest may indicate size constraints or visibility issues in the investment community.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

Very High P/E Ratio

Observation: Significant overvaluation risk present.

Analysis: Extremely high P/E ratios indicate potential bubble territory and high downside risk.

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Financial Statements

Comprehensive financial data for Hind Rectifiers Ltd

About HIRECT

Company Details

Symbol:HIRECT
Industry:Industrial Products
Sector:Industrial Products

Market Information

Market Cap:2.59K (Cr)
P/E Ratio:54.17
Beta:N/A

Performance

52W High:N/A
52W Low:N/A
Dividend Yield:0.13%

HIRECT Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)25.72%
Return on Capital Employed21.60%
Operating Profit Margin (5Y)7.88%
Debt to Equity Ratio1.09
Interest Coverage Ratio5.77

Growth & Valuation

Sales Growth (5Y)16.95%
Profit Growth (5Y)14.65%
EPS Growth (5Y)13.84%
YoY Quarterly Profit Growth44.75%
YoY Quarterly Sales Growth36.96%

Frequently Asked Questions

What is the current price of HIRECT?

HIRECT is currently trading at ₹1460.10 with a gain of 0.00% today. The current market price (CMP) represents the last traded price of HIRECT shares on the stock exchange. This price fluctuates throughout trading hours based on supply and demand. You can track real-time price movements, percentage changes, and trading volume in the header section.

What is the P/E ratio of HIRECT and what does it mean?

HIRECT has a P/E ratio of 54.17x compared to the industry average of 33.94x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹54 for every ₹1 of annual earnings. This is higher than the industry average, suggesting either growth premium or potential overvaluation.

How is HIRECT performing according to Bull Run's analysis?

HIRECT has a Bull Run fundamental score of 54.7/100, which indicates moderate strength with some areas for improvement. This comprehensive rating is based on 15+ financial parameters including profitability (ROE: 25.72%), growth metrics, valuation ratios, and financial health indicators. The score updates quarterly with new financial data and helps you quickly assess overall investment quality.

What sector and industry does HIRECT belong to?

HIRECT operates in the Industrial Products industry. This sector classification helps understand the broader economic trends, regulatory framework, and competitive landscape affecting Hind Rectifiers Ltd. Companies in this industry typically face similar market dynamics, cyclical patterns, and macroeconomic factors. Understanding the industry context is crucial for peer comparison and assessing how sector-specific trends might impact the stock's performance.

What is Return on Equity (ROE) and why is it important for HIRECT?

HIRECT has an ROE of 25.72%, which indicates excellent management efficiency and profitable operations. Return on Equity measures how efficiently Hind Rectifiers Ltd generates profits from shareholders' equity. An ROE of 26% means the company generates ₹26 profit for every ₹100 of shareholders' equity. This metric is crucial for assessing management's ability to create value for shareholders.

How is HIRECT's debt-to-equity ratio and what does it indicate?

HIRECT has a debt-to-equity ratio of 1.09, which indicates high leverage that increases financial risk. This means the company has ₹109 of debt for every ₹100 of equity. Higher leverage can amplify returns during good times but increases bankruptcy risk during downturns.

What is HIRECT's dividend yield and is it a good dividend stock?

HIRECT offers a dividend yield of 0.13%, which means you receive ₹0.13 annual dividend for every ₹100 invested. The focus appears to be more on growth rather than dividend income. Dividend yield is calculated as annual dividend per share ÷ current share price × 100. Evaluate dividend consistency over 5+ years and free cash flow coverage for sustainability.

How has HIRECT grown over the past 5 years?

HIRECT has achieved 5-year growth rates of: Sales Growth 16.95%, Profit Growth 14.65%, and EPS Growth 13.84%. These growth metrics show the company's ability to expand its business and improve profitability over time. Sales growth indicates market expansion, profit growth shows operational efficiency, and EPS growth directly impacts share price appreciation potential.

What is the promoter holding in HIRECT and why does it matter?

Promoters hold 43.93% of HIRECT shares, with 6.81% of promoter shares pledged. This promoter holding level suggests balanced ownership between management and public shareholders. Low pledging indicates financial stability of promoters. Recent change in promoter holding: -0.05%.

How does HIRECT compare with its industry peers?

HIRECT trades at P/E 54.17x vs industry average 33.94x, with ROE of 25.72% and ROCE of 21.60%. The stock trades at a premium to industry average, which may be justified by superior fundamentals. Peer comparison helps identify whether HIRECT is outperforming its competitive set in profitability, growth, and valuation metrics.

What is HIRECT's market capitalization and what category does it fall into?

HIRECT has a market capitalization of ₹2585 crores, making it a Large-cap stock. Large-cap stocks offer stability and liquidity but typically slower growth. Market cap is calculated as current share price × total outstanding shares, representing the company's total market value.

What are the key financial ratios to consider for HIRECT?

Key ratios for HIRECT: ROE 25.72% (Excellent), ROCE 21.60%, P/E 54.17x, Debt-to-Equity 1.09, Interest Coverage 5.77x. These ratios help assess profitability (ROE, ROCE), valuation (P/E), financial health (D/E, Interest Coverage), and overall investment quality. Compare these with industry medians and historical trends for meaningful analysis.

How volatile is HIRECT stock and what is its beta?

HIRECT has a beta of N/A, which means it is less volatile than the market and offers defensive characteristics. Beta measures price volatility relative to the Nifty 50. Lower beta stocks provide stability during uncertain market conditions. Consider beta alongside your risk tolerance and portfolio diversification strategy.

What is the 52-week high and low for HIRECT?

HIRECT has a 52-week high of ₹N/A and low of ₹N/A. Currently trading at ₹1460.10, the stock is within its annual trading range. Trading near highs indicates strong momentum but limited upside potential.

What are the key risks associated with investing in HIRECT?

Key risks for HIRECT include: Market volatility (Beta: N/A), financial leverage (Debt-to-Equity: 1.09), and operational challenges. The stock has a Fundamental Score of 54.7/100, indicating moderate risk requiring careful monitoring. Sector-specific risks in Industrial Products include regulatory changes, economic cycles, and competitive pressures. Consider your risk tolerance, investment horizon, and portfolio diversification before investing. Past performance doesn't guarantee future results.

What is HIRECT's operating profit margin and how has it trended?

HIRECT has a 5-year average Operating Profit Margin (OPM) of 7.88%, which suggests room for improvement in operational efficiency. Operating Profit Margin shows operational efficiency by measuring operating profit as a percentage of revenue. Monitor margin trends to assess management's ability to control costs and improve efficiency. Compare with industry peers to understand relative performance.

How is HIRECT's quarterly performance in terms of sales and profit growth?

HIRECT's recent quarterly performance shows YoY Sales Growth of 36.96% and YoY Profit Growth of 44.75%. This strong double-digit growth indicates excellent business momentum and management execution. Sales growth shows market demand while profit growth reveals operational efficiency and margin management.

What is the FII and DII holding pattern in HIRECT?

HIRECT has FII holding of 6.64% and DII holding of 0.13%, totaling 6.77% institutional ownership. This institutional participation level shows the confidence of professional money managers. Monitor quarterly changes in institutional holdings for investment flow trends and sentiment.