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Hikal Limited (IN:HIKAL)
:HIKAL
India Market
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Hikal Limited (HIKAL) AI Stock Analysis

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IN:HIKAL

Hikal Limited

(HIKAL)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
₹350.00
▲(37.36% Upside)
Hikal Limited's stock score is primarily impacted by its strong financial health, with improving profitability and operational efficiency. However, the technical analysis reveals a bearish trend, with the stock being oversold. Additionally, the high P/E ratio suggests potential overvaluation, contributing to a moderate overall score.

Hikal Limited (HIKAL) vs. iShares MSCI India ETF (INDA)

Hikal Limited Business Overview & Revenue Model

Company DescriptionHikal Limited, together with its subsidiaries, manufactures and sells various chemical intermediates, specialty chemicals, and active pharma ingredients to pharmaceutical, animal healthcare, biotech, crop protection, and specialty chemicals companies. It operates through two segments, Pharmaceuticals and Crop Protection. The Pharmaceuticals segment produces active pharmaceutical ingredient (APIs). The Crop Protection segment manufactures pesticides and herbicides. The company collaborates with other companies and offer solutions in contract research, custom synthesis, and custom manufacturing of intermediates and APIs. It also provides specialty biocides and antimicrobial actives, as well as additives for leather, paint coatings, paper, water treatment, personal care, building materials, and textile industries. The company was incorporated in 1988 and is headquartered in Navi Mumbai, India.
How the Company Makes MoneyHikal Limited generates revenue primarily through the manufacturing and sale of active pharmaceutical ingredients and intermediates for the pharmaceutical industry, as well as through the production of crop protection chemicals for the agrochemical sector. The company engages in custom synthesis and contract research services, allowing it to cater to specific client needs in these industries. Key revenue streams include long-term supply agreements with major pharmaceutical companies, strategic partnerships for research and development, and the production of proprietary agrochemical products. Hikal's earnings are influenced by its ability to innovate and maintain strong relationships with a diversified client base across different geographies.

Hikal Limited Financial Statement Overview

Summary
Hikal Limited demonstrates solid financial health with improving profitability and operational efficiency. Despite inconsistent revenue growth, recent recovery is evident. The balance sheet shows moderate leverage and a stable equity position. Cash flow metrics indicate strong cash generation, though historically volatile.
Income Statement
72
Positive
Hikal Limited shows a strong gross profit margin of 55.0% TTM, with a steady increase in net profit margin from previous years to 4.9% TTM. Revenue growth rate has fluctuated, showing a decline in recent years but a recovery to a 5.2% growth in 2025. EBIT and EBITDA margins have improved significantly from 8.5% and 15.1% in 2024 to 41.7% and 17.9% TTM, respectively, indicating better operational efficiency.
Balance Sheet
68
Positive
The debt-to-equity ratio stands at 0.61, reflecting moderate leverage. Return on equity has improved to 7.2% TTM, suggesting better returns to shareholders. The equity ratio is at a healthy 49.9%, indicating a stable financial position and a balanced approach to financing.
Cash Flow
65
Positive
The free cash flow growth rate has shown volatility, with a significant positive shift to a substantial TTM free cash flow of 1,431 million. The operating cash flow to net income ratio is robust at 3.09, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio of 1.58 reflects a good conversion of net income into free cash flow.
BreakdownTTMDec 2025Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.49B18.60B17.69B20.05B19.26B17.07B
Gross Profit9.23B10.22B9.05B8.45B8.83B7.59B
EBITDA3.29B3.33B2.67B2.60B3.40B3.24B
Net Income908.00M908.00M696.02M783.82M1.60B1.33B
Balance Sheet
Total Assets25.29B25.29B24.87B23.85B22.13B19.13B
Cash, Cash Equivalents and Short-Term Investments180.00M180.00M181.93M593.05M217.09M168.06M
Total Debt7.65B7.65B8.18B7.48B6.75B6.10B
Total Liabilities12.67B12.67B12.99B12.52B11.45B9.80B
Stockholders Equity12.62B12.62B11.88B11.33B10.68B9.33B
Cash Flow
Free Cash Flow0.001.43B-174.80M126.89M204.19M714.19M
Operating Cash Flow0.002.80B1.87B3.15B2.94B2.29B
Investing Cash Flow0.00-1.36B-1.74B-2.92B-2.84B-1.56B
Financing Cash Flow0.00-1.44B-270.00M-76.80M-55.58M-968.68M

Hikal Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price254.80
Price Trends
50DMA
281.85
Negative
100DMA
325.99
Negative
200DMA
353.61
Negative
Market Momentum
MACD
-5.08
Negative
RSI
36.36
Neutral
STOCH
10.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HIKAL, the sentiment is Negative. The current price of 254.8 is below the 20-day moving average (MA) of 262.25, below the 50-day MA of 281.85, and below the 200-day MA of 353.61, indicating a bearish trend. The MACD of -5.08 indicates Negative momentum. The RSI at 36.36 is Neutral, neither overbought nor oversold. The STOCH value of 10.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HIKAL.

Hikal Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
₹26.78B28.6810.21%0.41%2.12%-25.99%
58
Neutral
₹33.70B25.765.61%22.04%
55
Neutral
₹31.42B49.630.55%1.67%-6.61%
54
Neutral
₹47.66B159.443.11%12.33%439.46%
46
Neutral
₹26.33B-23.46-7.22%0.07%-8.28%-246.17%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:HIKAL
Hikal Limited
254.80
-115.36
-31.16%
IN:INDOCO
Indoco Remedies Limited
285.45
-73.49
-20.47%
IN:MOREPENLAB
Morepen Laboratories Limited
48.87
-36.31
-42.63%
IN:RPGLIFE
RPG Life Sciences Limited
2,303.35
-27.39
-1.18%
IN:SEQUENT
Sequent Scientific Limited
189.40
-43.10
-18.54%
IN:UNICHEMLAB
Unichem Laboratories Limited
478.70
-179.85
-27.31%

Hikal Limited Corporate Events

Hikal Limited Updates RTA Contact Information
Apr 18, 2025

Hikal Limited has announced an update to the contact details of its Registrar and Share Transfer Agent (RTA), now known as MUFG Intime India Private Limited. This update includes new email and website addresses for shareholder queries and service requests, reflecting the company’s ongoing commitment to improving communication and service efficiency for its stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025