Hester Biosciences Limited (HESTERBIO) AI Stock Analysis

• Market Cap: ₹13.11B
• Dividend Yield: 0.44%
• Average Volume (3M): 308.00
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.65
• Revenue Growth: -3.84%
• EPS Growth: 86.82%
• Country: IN
• Employees: 642
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 10.30
• Shares Outstanding: 8,506,865
• 10 Day Avg. Volume: 428
• 30 Day Avg. Volume: 308
• PEG Ratio: 0.96
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 3.88
• P/FCF Ratio: 27.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹1,584.00 ▼(-1.35% Downside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Hester Biosciences Limited's overall stock score is primarily supported by its strong financial performance, which indicates robust revenue and profit growth. However, the technical analysis suggests bearish momentum, and the valuation indicates the stock might be overvalued. These factors contribute to a moderate overall score.

Positive Factors

Strong financial performance

Consistent revenue and profit expansion with improving margins indicate durable operational strength. Sustained margin improvement and steady net profit imply pricing power, better cost control and scalable manufacturing, supporting predictable earnings and reinvestment over the next several quarters.

Robust cash generation

Improving free cash flow shows the company converts earnings into cash reliably, enabling capex funding, capacity expansion and working capital without immediate reliance on equity financing. This cash strength supports durable operations and strategic investments over a multi-quarter horizon.

Balanced capital structure

A solid equity base and moderate leverage provide financial flexibility to fund growth or weather cyclical demand without excessive refinancing risk. This structural balance supports sustainable investment in production and R&D and preserves borrowing capacity for strategic needs.

Negative Factors

Rising debt concern

An uptick in total debt can raise interest costs and reduce financial flexibility, potentially crowding out discretionary capex or R&D. If revenue weakens during seasonal or outbreak-driven lulls, higher leverage could strain cash flow and limit strategic options over coming quarters.

Demand cyclicality

Revenue depends on disease incidence and vaccination cycles, which are inherently variable. This structural exposure creates uneven volumes and forecasting difficulty, pressuring capacity utilization and margin stability across seasons and outbreak-driven demand spikes.

Product concentration risk

Heavy reliance on a vaccine portfolio for poultry and large animals concentrates commercial risk. Regulatory delays, competitive entries or production disruptions for key vaccine lines could materially affect revenue and growth, reducing resilience compared with more diversified peers.

Hester Biosciences Limited Business Overview & Revenue Model

Company Description

Hester Biosciences Limited manufactures and trades in veterinary vaccines and animal health products in India and internationally. It operates in two segments, Poultry Healthcare and Animal Healthcare. The company provides poultry vaccines for diseases, such as newcastle disease, infectious bronchitis, infectious bursal disease, fowl pox, egg drop syndrome, reo, marek's disease, infectious coryza, fowl cholera, mycoplasma gallisepticum, inclusion body hepatitis, avian encephalomyelitis, etc. It also offers vaccines for large animals comprising Goat Pox, Peste des Petits Ruminants, Brucellosis, Mastitis, Metritis, and various infectious diseases, as well as infections, reproductive disorders, theileriosis, parasitic diseases, etc. In addition, the company provides feed supplements, such as toxin binder, trace minerals, enzyme preparation, and bypass fat; disinfectants for farms and equipment, and water sanitizers; nutrition products consisting of mineral mixtures, fertility supplements, and growth tonics; and herbal products, including growth promoters, herbal replacers for choline chloride, stress relievers and immunity boosters, respiratory stimulants, liver tonics, wound healing preparations, uterine tonics, digestive tonics and anti-bloat solutions, ectoparasiticide preparations, anti-mastitis, and anti-prolapse preparations. Hester Biosciences Limited was incorporated in 1987 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Hester Biosciences generates revenue primarily through the sale of its veterinary vaccines and biological products. The company operates on a B2B model, supplying its products to farmers, veterinary clinics, and animal health distributors. Key revenue streams include the sale of various vaccines for poultry, cattle, and swine, alongside diagnostic kits and health supplements. Hester also benefits from strategic partnerships with international organizations and collaborations with research institutions that enhance its product offerings and market reach. Additionally, the company engages in export activities, which further contribute to its revenue growth by tapping into global markets.

Hester Biosciences Limited Financial Statement Overview

Summary

Hester Biosciences Limited demonstrates strong financial health across its income statement, balance sheet, and cash flow metrics. The company shows significant revenue and profit growth with improving margins, a balanced financial structure, and robust cash flow generation. However, the increase in debt should be monitored to prevent potential financial strain.

Income Statement

The company's revenue growth is robust, with consistent upward trends over the years, including a significant spike in gross profit margins. EBIT and EBITDA margins have shown improvement, indicating operational efficiency. The net profit margin has remained stable, showing consistent profitability.

Balance Sheet

The company maintains a solid equity base with a moderate debt-to-equity ratio, indicating balanced leverage. The return on equity shows steady profitability relative to shareholder equity. The equity ratio indicates a sound financial structure, but the increase in total debt requires close monitoring.

Cash Flow

Positive free cash flow growth highlights effective cash management despite significant capital expenditures. The operating cash flow to net income ratio suggests healthy cash generation. The free cash flow to net income ratio shows improvement, reflecting better cash conversion efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.13B	3.11B	3.05B	2.66B	2.35B	2.14B
Gross Profit	1.87B	2.08B	972.64M	1.89B	1.66B	1.58B
EBITDA	654.50M	649.76M	582.46M	619.20M	731.93M	700.21M
Net Income	375.94M	274.88M	188.89M	266.27M	393.20M	344.30M
Balance Sheet
Total Assets	0.00	6.53B	6.62B	6.70B	5.62B	4.11B
Cash, Cash Equivalents and Short-Term Investments	72.19M	72.19M	153.04M	148.17M	252.20M	212.69M
Total Debt	0.00	2.13B	2.44B	2.74B	2.28B	1.10B
Total Liabilities	-3.27B	3.27B	3.59B	3.81B	2.95B	1.75B
Stockholders Equity	3.27B	3.14B	2.92B	2.80B	2.60B	2.28B
Cash Flow
Free Cash Flow	0.00	439.20M	237.37M	-541.66M	-869.02M	173.11M
Operating Cash Flow	0.00	645.11M	481.34M	235.96M	88.08M	580.53M
Investing Cash Flow	0.00	-190.03M	-226.54M	-769.99M	-1.17B	-383.72M
Financing Cash Flow	0.00	-517.17M	-260.45M	417.58M	1.12B	-182.19M

Hester Biosciences Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1605.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HESTERBIO, the sentiment is Negative. The current price of 1605.75 is above the 20-day moving average (MA) of 1547.30, above the 50-day MA of 1534.09, and below the 200-day MA of 1750.81, indicating a neutral trend. The MACD of 9.94 indicates Negative momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 49.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HESTERBIO.

Hester Biosciences Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HESTERBIO	61 Neutral	₹13.11B	32.02	―	0.44%	-3.84%	86.82%
UNICHEMLAB	61 Neutral	₹23.27B	7.89	―	―	25.42%	―
GUFICBIO	57 Neutral	₹27.96B	55.89	―	0.03%	7.78%	-34.68%
MOREPENLAB	57 Neutral	₹22.84B	22.97	―	0.49%	-0.29%	-29.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INDOCO	49 Neutral	₹18.55B	-16.27	―	0.08%	-2.81%	-444.69%

Hester Biosciences Limited Corporate Events

Hester Biosciences Publishes Extract of Q3 and Nine-Month FY2025 Results

Hester Biosciences Limited, listed on both BSE and NSE under the symbol HESTERBIO, has released an extract of its consolidated unaudited financial results for the quarter and nine-month period ended 31 December 2025, along with information on standalone financial results. The company notified the exchanges that these results have been published in the Ahmedabad editions of the Financial Express in both English and Gujarati, underscoring its compliance with SEBI disclosure norms and providing public access to key financial performance data for investors and other stakeholders.

Hester Biosciences to Close Trading Window Ahead of December Quarter Results

Hester Biosciences Limited has announced the closure of its trading window for dealings in the company’s equity shares from 1 January 2026 until 48 hours after its financial results for the quarter and nine-month period ended 31 December 2025 are made publicly available. The move, undertaken in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct for directors, promoters, designated employees, and connected persons, is a standard governance measure aimed at preventing insider trading and reinforcing regulatory compliance and transparency for investors and other stakeholders.