Hester Biosciences Limited (HESTERBIO) AI Stock Analysis

• Market Cap: ₹12.32B
• Dividend Yield: 0.44%
• Average Volume (3M): 308.00
• Price to Earnings (P/E): 38.8
• Beta (1Y): 0.71
• 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: ₹1,528.00 ▼(-4.84% 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

Revenue and Margin Trends

Consistent revenue growth coupled with improving EBIT/EBITDA and stable net margins signals scalable operations and a stronger product mix. Sustained margin expansion supports reinvestment in manufacturing and R&D, enhancing durable profitability over multiple quarters.

Cash Generation

Positive free cash flow growth and a healthy operating cash flow-to-net-income ratio indicate strong cash conversion. This durable cash generation funds capex, working capital, and debt service internally, reducing dependency on external funding and improving financial flexibility.

Balance Sheet Strength

A solid equity base combined with moderate leverage provides financial resilience and borrowing capacity. This balanced structure supports capacity expansion or strategic investments while helping absorb cyclical shocks in the animal-health market without immediate solvency pressure.

Negative Factors

Rising Debt Levels

Company disclosures note an increase in total debt that warrants monitoring. Higher leverage raises interest expense and constrains capital allocation flexibility; if growth softens, elevated debt amplifies strain on cash flows and could limit strategic investment or increase refinancing risk.

Revenue Cyclicality

Sales volumes and timing are materially tied to disease incidence and vaccination cycles in livestock and poultry. This structural cyclicality creates unpredictable demand, variable utilization of capacity, and inventory swings that can depress near-term revenue and margins across quarters.

Regulatory Dependence

Product commercialization and market access depend on regulatory approvals and institutional/government engagement. Regulatory delays or non-approvals can postpone launches, defer revenue recognition, and elongate R&D payback periods, creating sustained uncertainty for pipeline realization.

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 makes money primarily by selling veterinary vaccines and other animal healthcare products. Its core revenue stream comes from commercialization of its vaccine portfolio for poultry and large animals through sales to distributors, integrators, and institutional/government customers where applicable. Revenue is generated from product sales (typically recognized on dispatch/delivery per customer terms), with earnings driven by volumes, product mix (different vaccines/dosage forms), and pricing. Additional income may come from sales of complementary animal health products and from manufacturing/technical services where offered (e.g., contract manufacturing or similar services), but if a specific line item is not publicly detailed, it is null. Key factors influencing earnings include disease incidence and vaccination cycles in poultry and livestock, regulatory approvals for products, production capacity utilization, and the strength of the company’s distribution network; specific partnership details are null if not explicitly disclosed in available company materials.

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	3.00B	3.11B	3.05B	2.66B	2.35B	2.14B
Gross Profit	2.00B	2.08B	972.64M	1.89B	1.66B	1.58B
EBITDA	670.92M	649.76M	582.46M	619.20M	731.93M	700.21M
Net Income	438.44M	274.88M	188.89M	266.27M	393.20M	344.30M
Balance Sheet
Total Assets	6.75B	6.53B	6.62B	6.70B	5.62B	4.11B
Cash, Cash Equivalents and Short-Term Investments	281.58M	72.19M	153.04M	148.17M	252.20M	212.69M
Total Debt	2.14B	2.13B	2.44B	2.74B	2.28B	1.10B
Total Liabilities	3.24B	3.27B	3.59B	3.81B	2.95B	1.75B
Stockholders Equity	3.38B	3.14B	2.92B	2.80B	2.60B	2.28B
Cash Flow
Free Cash Flow	91.06M	439.20M	237.37M	-541.66M	-869.02M	173.11M
Operating Cash Flow	174.78M	645.11M	481.34M	235.96M	88.08M	580.53M
Investing Cash Flow	-22.74M	-190.03M	-226.54M	-769.99M	-1.17B	-383.72M
Financing Cash Flow	-155.89M	-517.17M	-260.45M	417.58M	1.12B	-182.19M

Hester Biosciences Limited Technical Analysis

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

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 1521.20, above the 50-day MA of 1515.18, and below the 200-day MA of 1737.71, indicating a bearish trend. The MACD of -25.14 indicates Positive momentum. The RSI at 29.89 is Positive, neither overbought nor oversold. The STOCH value of 14.08 is Positive, 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	₹12.32B	38.81	―	0.44%	-3.84%	86.82%
UNICHEMLAB	61 Neutral	₹21.96B	2.94	―	―	25.42%	―
GUFICBIO	57 Neutral	₹28.37B	67.80	―	0.03%	7.78%	-34.68%
MOREPENLAB	57 Neutral	₹20.67B	20.54	―	0.49%	-0.29%	-29.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INDOCO	49 Neutral	₹17.50B	-18.14	―	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.