Hinduja Global Solutions Limited (HGS) AI Stock Analysis

• Market Cap: ₹24.70B
• Dividend Yield: 1.32%
• Average Volume (3M): 7.11K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.07
• Revenue Growth: -4.50%
• EPS Growth: -109.54%
• Country: IN
• Employees: 18,169
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 3.75
• Shares Outstanding: 46,520,287
• 10 Day Avg. Volume: 3,169
• 30 Day Avg. Volume: 7,114
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹546.00
• Price Target Upside: 1.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ₹546.00 ▲(1.39% Upside)

The overall stock score of 52 reflects significant operational challenges and bearish technical indicators. While the valuation is reasonable, the company's declining revenues and negative EBIT margins weigh heavily on its prospects. The technical analysis suggests weak momentum, further impacting the stock's attractiveness.

Hinduja Global Solutions Limited Business Overview & Revenue Model

Company Description

Hinduja Global Solutions Limited (HGS) is a global leader in business process management (BPM) and customer experience solutions. With a presence in multiple countries, HGS serves a diverse range of industries including healthcare, telecommunications, consumer electronics, and financial services. The company offers a wide array of services such as customer support, technical support, back-office processing, and digital solutions that leverage advanced analytics and automation to enhance customer engagement and operational efficiency.

How the Company Makes Money

Hinduja Global Solutions Limited primarily makes money through its business process management and customer experience services. The company's revenue model is based on long-term contracts with clients across various industries, where it provides outsourced services such as customer care, technical support, and back-office operations. HGS also generates income by offering digital solutions that include analytics, automation, and cloud-based services, which help clients improve their customer interactions and operational processes. A significant portion of HGS's earnings is driven by its ability to deliver cost-effective solutions tailored to the specific needs of each client, often leading to strategic partnerships and repeat business.

Hinduja Global Solutions Limited Financial Statement Overview

Summary

Hinduja Global Solutions Limited faces operational challenges with declining revenues and negative EBIT margins. Despite a stable balance sheet with a healthy equity ratio and manageable debt levels, cash flows are positive but inconsistent, highlighting the need for improved operational efficiency.

Income Statement

The income statement shows a decline in revenue with a negative EBIT margin, indicating operational challenges. Gross profit margin remains high, but net profit margin is low due to high operating expenses. The company has faced revenue declines over the years, suggesting growth challenges.

Balance Sheet

The balance sheet is relatively stable with a healthy equity ratio and decreasing debt-to-equity ratio, reflecting good financial management. However, the company has high total debt, which poses potential risks if cash flows are insufficient to cover obligations.

Cash Flow

Cash flow analysis reveals positive operating cash flow, but fluctuating free cash flow growth, indicating inconsistent cash management. The operating cash flow to net income ratio is strong, suggesting good cash conversion, yet capital expenditures remain high.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	44.04B	45.87B	44.86B	42.43B	26.02B
Gross Profit	43.43B	13.84B	44.39B	8.90B	2.34B
EBITDA	8.12B	8.07B	7.82B	3.96B	395.66M
Net Income	1.21B	1.33B	3.32B	60.47B	3.36B
Balance Sheet
Total Assets	111.72B	111.25B	113.64B	116.37B	43.45B
Cash, Cash Equivalents and Short-Term Investments	44.55B	30.42B	11.52B	35.67B	5.35B
Total Debt	19.43B	21.07B	9.98B	14.09B	11.79B
Total Liabilities	33.17B	34.82B	26.62B	34.07B	22.60B
Stockholders Equity	77.08B	74.88B	85.47B	80.75B	20.85B
Cash Flow
Free Cash Flow	2.14B	77.78M	-1.70B	314.47M	5.34B
Operating Cash Flow	4.57B	1.92B	1.18B	5.30B	6.92B
Investing Cash Flow	5.02B	1.74B	-1.91B	19.21B	-2.09B
Financing Cash Flow	-8.98B	-8.08B	-11.08B	-8.67B	-4.76B

Hinduja Global Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 538.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HGS, the sentiment is Negative. The current price of 538.5 is below the 20-day moving average (MA) of 573.80, below the 50-day MA of 555.07, and below the 200-day MA of 589.71, indicating a bearish trend. The MACD of -5.17 indicates Positive momentum. The RSI at 38.49 is Neutral, neither overbought nor oversold. The STOCH value of 7.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HGS.

Hinduja Global Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLS	72 Outperform	₹158.27B	28.00		0.26%	35.01%	57.75%
CMSINFO	71 Outperform	₹71.65B	19.04		2.18%	4.25%	2.53%
UDS	63 Neutral	₹16.82B	13.21		―	10.48%	48.66%
ONEPOINT	57 Neutral	₹12.14B	33.08		―	51.01%	23.08%
Sector *	54 Neutral	C$45.05M	57.91	15.08%	4.51%	1.39%	-26.37%
PDSL	54 Neutral	₹45.62B	29.71		1.05%	19.10%	-1.73%
HGS	52 Neutral	₹24.70B	22.01		1.32%	-4.50%	-109.54%