Hinduja Global Solutions Limited (HGS) AI Stock Analysis

• Market Cap: ₹23.99B
• Dividend Yield: 1.44%
• Average Volume (3M): 1.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -2.43%
• EPS Growth: -100.43%
• Country: IN
• Employees: 18,169
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): -4.20
• Shares Outstanding: 46,520,287
• 10 Day Avg. Volume: 931
• 30 Day Avg. Volume: 1,204
• PEG Ratio: -2.75
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 10.30
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹519.00 ▲(9.85% Upside)

The overall stock score is primarily influenced by operational challenges and a negative P/E ratio, indicating potential overvaluation. The technical analysis suggests a bearish trend, although the RSI is neutral. The stable balance sheet and positive cash flows provide some support, but the need for improved operational efficiency is evident.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a healthy equity ratio and decreasing debt-to-equity ratio indicates good financial management, providing a solid foundation for long-term operations and potential growth opportunities.

Positive Operating Cash Flow

Positive operating cash flow suggests that the company can generate sufficient cash from its core operations, providing financial flexibility to reinvest in the business and manage debt obligations effectively.

High Gross Profit Margin

A high gross profit margin indicates strong pricing power and cost management, which can support profitability even amidst revenue challenges, allowing the company to sustain its competitive position.

Negative Factors

Declining Revenues

Declining revenues signal potential challenges in market demand or competitive pressures, which could impact the company's ability to grow and maintain its market position over the long term.

Negative EBIT Margins

Negative EBIT margins reflect operational inefficiencies and high costs relative to revenue, which can undermine profitability and require strategic adjustments to improve financial performance.

Inconsistent Cash Management

Inconsistent cash management, as evidenced by fluctuating free cash flow, can lead to financial instability, affecting the company's ability to invest in growth initiatives and meet financial obligations consistently.

Hinduja Global Solutions Limited Business Overview & Revenue Model

Company Description

Hinduja Global Solutions Limited (HGS) is a leading provider of business process management (BPM) and customer experience services, headquartered in India. The company operates in various sectors including healthcare, banking, financial services, insurance, telecommunications, and retail. HGS offers a range of core services such as customer support, technical support, digital transformation, and analytics, aiming to enhance customer engagement and operational efficiency for its clients.

How the Company Makes Money

Hinduja Global Solutions generates revenue primarily through its business process outsourcing (BPO) services, which include customer service, technical support, and other back-office functions. The company's revenue model relies on a combination of fixed-price contracts, time-and-material contracts, and performance-based pricing. Key revenue streams include long-term contracts with clients across diverse sectors, enabling stable and recurring revenue. Additionally, HGS has established significant partnerships with major technology and service providers, which enhances its service offerings and attracts more clients. The company's focus on digital transformation and analytics also positions it to capitalize on emerging market trends, contributing to its overall earnings.

Hinduja Global Solutions Limited Financial Statement Overview

Summary

Hinduja Global Solutions Limited faces operational challenges with declining revenues and negative EBIT margins. However, it maintains a stable balance sheet with manageable debt levels. Cash flows are positive but inconsistent, highlighting the need for improved operational efficiency and cost control.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.68B	44.04B	46.16B	44.86B	42.43B	26.02B
Gross Profit	42.92B	43.43B	18.93B	44.39B	8.90B	2.34B
EBITDA	8.28B	8.12B	8.28B	7.78B	3.96B	395.66M
Net Income	-267.00M	1.21B	1.33B	3.32B	60.47B	3.36B
Balance Sheet
Total Assets	112.23B	111.72B	111.25B	113.64B	116.37B	43.45B
Cash, Cash Equivalents and Short-Term Investments	7.33B	44.55B	28.98B	11.52B	35.67B	5.35B
Total Debt	11.87B	19.43B	21.07B	9.98B	14.09B	11.79B
Total Liabilities	-78.55B	33.17B	34.82B	26.62B	34.07B	22.60B
Stockholders Equity	78.55B	77.08B	74.88B	85.47B	80.75B	20.85B
Cash Flow
Free Cash Flow	812.80M	2.14B	77.78M	-1.83B	314.47M	5.34B
Operating Cash Flow	2.94B	4.57B	1.92B	1.11B	5.30B	6.92B
Investing Cash Flow	1.79B	5.02B	1.74B	-881.76M	19.21B	-2.09B
Financing Cash Flow	-3.43B	-8.98B	-8.08B	-11.08B	-8.67B	-4.76B

Hinduja Global Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 472.45
• 50DMA: Negative
• 100DMA: Negative
• 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 472.45 is below the 20-day moving average (MA) of 496.86, below the 50-day MA of 502.23, and below the 200-day MA of 523.09, indicating a bearish trend. The MACD of -7.73 indicates Positive momentum. The RSI at 33.95 is Neutral, neither overbought nor oversold. The STOCH value of 16.89 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
CMSINFO	74 Outperform	₹59.68B	15.85	―	2.67%	0.13%	-3.14%
ONEPOINT	73 Outperform	₹13.10B	33.70	―	―	25.17%	9.55%
BLS	70 Outperform	₹132.52B	23.44	―	0.31%	41.61%	44.11%
PDSL	65 Neutral	₹53.37B	49.21	―	0.95%	11.49%	-32.79%
UDS	63 Neutral	₹15.51B	12.71	―	―	8.98%	13.54%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
HGS	49 Neutral	₹23.99B	-89.84	―	1.44%	-2.43%	-100.43%

Hinduja Global Solutions Limited Corporate Events

HGS Unveils AI-Powered Interaction Intelligence to Revolutionize Customer Experience

Hinduja Global Solutions Limited has launched ‘Interaction Intelligence’, an AI-driven solution designed to transform Quality Assurance into a strategic asset that enhances customer experience and supports decision-making. This solution, based on the HGS Agent X framework, allows enterprises to analyze nearly all customer interactions, providing insights into compliance, agent performance, and customer loyalty. The launch is part of HGS’s strategy to leverage AI for innovation-led growth, positioning the company to capitalize on the growing market for AI-driven customer service solutions, which is projected to reach $73.4 billion by 2028.

HGS Expands with New Intelligent Experience Hub in Manila

Hinduja Global Solutions Limited has announced the opening of a new intelligent experience hub in Manila, Philippines, which will enhance its capability to deliver technology-enabled solutions and create over 1,000 new jobs in the next two years. This strategic move underscores HGS’s long-term commitment to the region and aims to consolidate its teams in a modern, collaborative environment, supporting evolving business needs and delivery models. The new facility, which can accommodate up to 3,000 employees in two shifts, marks a significant milestone in HGS’s growth and its efforts to orchestrate meaningful, intelligent experiences for clients.