Company Presentation
Established in 1947, Hindusthan Engineering & Industries Limited (HEIL), the flagship company of the Hindusthan Group, operates in three main business verticals: Engineering (manufacturing railway wagons, rolling stock, steel castings, EOT cranes, and railway track components), Chemicals (production of industrial chemicals like sodium cyanide and potassium cyanide), and Jute (manufacturing and sale of jute goods). HEIL has eight manufacturing units across India. The Engineering segment, with units at Bamunari, Santragachi, and Tiljala, is the largest contributor to revenue.
FY24 highlights include total revenue growth of 57% to ₹2,75,437 Lakhs (FY23: ₹1,75,616 Lakhs), with the Engineering segment revenue surging to ₹2,21,835 Lakhs (+104% YoY). Net Profit after Tax increased by 196% to 2,07,28 Lakhs (FY23: ₹70,03 Lakhs). The company demonstrated improved financial ratios, including a Debt Service Coverage Ratio of 8.86 (FY23: 6.58) and a Return on Equity of 16% (FY23: 6%). HEIL also focused on operational efficiency, specifically cost management and modernizing equipment like energy-efficient EOT cranes.
In FY24, the business contributions by segment were: Engineering contributing ₹2,21,835 Lakhs in revenue (+104% YoY), Chemicals contributing ₹17,355 Lakhs (-16% YoY), and Jute contributing ₹36,247 Lakhs (-21% YoY).
Major customers include Indian Railways, NTPC, Defence, Adani Group, Vedanta, DP World, Bangladesh Railways, and Tanzania Railway Corporation, and HEIL has also exported products to South Korea, Australia, and North America.
Key risks involve audit qualifications regarding unapproved concessions, recoverability of loans, and litigation related to a subsidiary's power project (₹11,40.33 Lakhs expenditure pending allocation), market fluctuations impacting the Jute and Chemicals segments due to volatile raw material prices (Jute -21%, Chemicals -16%), and ongoing legal proceedings and exposure to credit and liquidity risks.
Hindusthan Engineering & Industries Limited has achieved significant growth in the Engineering segment, making it the dominant revenue driver. Despite challenges in Chemicals and Jute, the company's diversified business model, strong customer base, and commitment to modernization position it for sustainable growth.
Hindusthan Engineering & Industries Limited appears to be significantly undervalued based on its Price-to-Earnings (P/E) ratio of 12.43 and Price-to-Book (P/B) ratio of 1.83. With a market capitalization of ₹2574 crore and robust growth in FY24 PAT figures, the valuation metrics suggest considerable upside potential. Furthermore, the company's low Debt-to-Equity ratio of 0.29 and an impressive Return on Equity (ROE) of 14.8% indicate strong financial health, making it an attractive investment opportunity in the unlisted market. The basic parameters include: M Cap ₹2574 Cr, CMP ₹1750, 52 W H/L ₹1750/₹2250, Face Value ₹10, and No. of Shares 1.47 Cr.
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Unlisted shares are stocks of companies that are not listed on any stock exchange, meaning they are not publicly traded. These shares are typically available for trade in the private market through brokers, and can offer unique investment opportunities.
You can buy unlisted shares through a broker or platform that specializes in unlisted share transactions. We provide a secure and easy way to purchase unlisted shares from top companies, ensuring a smooth transaction process.
The share prices of unlisted companies can fluctuate based on various factors like market demand, company performance, and private transactions. You can check the latest share prices for unlisted companies on our website for real-time updates.
Unlisted shares can offer higher growth potential, as they are typically not subject to the same market volatility as listed shares. However, they come with higher risk due to limited liquidity and availability of information. It's important to research thoroughly and consult experts before investing.
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Yes, unlisted shares can eventually be listed on a stock exchange through an Initial Public Offering (IPO). This process allows the company to offer its shares publicly and be traded on major exchanges, potentially increasing liquidity and visibility.
Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.
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Yes, unlisted shares may pay dividends if the company has declared them. However, since these companies may be in their growth stage, dividend payments are not always guaranteed. It's important to check the company's financial health before investing.
It's important to conduct thorough research on the company's financials, management, market potential, and overall business model. You can also seek professional advice from experts to help you choose unlisted shares with strong growth prospects.
Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.
