Hikal Limited (HIKAL) AI Stock Analysis

• Market Cap: ₹29.64B
• Dividend Yield: 0.62%
• Average Volume (3M): 34.88K
• Price to Earnings (P/E): 46.8
• Beta (1Y): 1.13
• Revenue Growth: -6.72%
• EPS Growth: -86.26%
• Country: IN
• Employees: 2,061
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -2.80
• Shares Outstanding: 123,300,750
• 10 Day Avg. Volume: 44,586
• 30 Day Avg. Volume: 34,881
• PEG Ratio: 1.79
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 2.66
• P/FCF Ratio: 34.59
• 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: 52 Neutral
• Price Target: ₹220.00 ▼(-9.74% Downside)

Hikal Limited's overall stock score is primarily influenced by its solid financial performance, which shows improving profitability and operational efficiency. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which negatively impacts the score. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Operational Efficiency

Improved operational efficiency, as evidenced by rising EBIT and EBITDA margins, indicates better cost management and profitability potential.

Cash Generation

Strong cash generation ability supports financial stability and provides flexibility for reinvestment and debt management.

Product Innovation

Continued investment in R&D fosters innovation, helping to maintain competitive advantage and drive long-term revenue growth.

Negative Factors

Revenue Growth Volatility

Inconsistent revenue growth can create uncertainty in financial projections, impacting long-term strategic planning and investor confidence.

Earnings Decline

Declining earnings per share suggest challenges in maintaining profitability, which could affect future investment and shareholder returns.

Leverage Concerns

Moderate leverage may limit financial flexibility and increase risk, especially if revenue growth remains volatile or interest rates rise.

Hikal Limited Business Overview & Revenue Model

Company Description

Hikal Limited (HIKAL) is an Indian company specializing in the pharmaceutical and agrochemical sectors. Established in 1988, it provides a diverse range of products and services, including active pharmaceutical ingredients (APIs), intermediates, and crop protection chemicals. Hikal is known for its commitment to quality and innovation, catering to both domestic and international markets.

How the Company Makes Money

Hikal Limited generates revenue primarily through the production and sale of APIs and intermediates for the pharmaceutical industry, as well as a variety of crop protection products for the agrochemical sector. The company operates on a business-to-business (B2B) model, supplying its products to major pharmaceutical companies and agricultural firms. Key revenue streams include long-term contracts with clients, custom manufacturing services, and the development of specialized products tailored to specific market needs. Hikal also benefits from strategic partnerships and collaborations with global firms, enhancing its market reach and driving sales growth. Additionally, the company's focus on research and development allows it to introduce innovative products, further contributing to its revenue generation.

Hikal Limited Financial Statement Overview

Summary

Hikal Limited demonstrates solid financial health with improving profitability and operational efficiency. While revenue growth has been inconsistent, recent trends indicate recovery. The balance sheet reflects moderate leverage and a stable equity position. Cash flow metrics indicate strong cash generation, albeit with some historical volatility. Overall, the company is on a positive trajectory, with key financial metrics showing improvement.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.13B	18.60B	17.69B	20.05B	19.26B	17.07B
Gross Profit	9.82B	10.22B	9.05B	8.62B	8.83B	7.70B
EBITDA	2.96B	3.33B	2.67B	2.60B	3.40B	3.24B
Net Income	633.00M	908.00M	696.02M	783.82M	1.60B	1.33B
Balance Sheet
Total Assets	0.00	25.29B	24.87B	23.85B	22.13B	19.13B
Cash, Cash Equivalents and Short-Term Investments	180.00M	178.00M	181.93M	267.30M	217.09M	168.06M
Total Debt	0.00	7.65B	8.18B	7.48B	6.75B	6.10B
Total Liabilities	-12.62B	12.67B	12.99B	12.52B	11.45B	9.80B
Stockholders Equity	12.62B	12.62B	11.88B	11.33B	10.68B	9.33B
Cash Flow
Free Cash Flow	0.00	1.43B	-174.80M	126.89M	204.19M	714.19M
Operating Cash Flow	0.00	2.80B	1.87B	3.15B	2.94B	2.29B
Investing Cash Flow	0.00	-1.36B	-1.74B	-2.92B	-2.84B	-1.56B
Financing Cash Flow	0.00	-1.44B	-270.00M	-76.80M	-55.58M	-968.68M

Hikal Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 243.75
• 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:HIKAL, the sentiment is Positive. The current price of 243.75 is above the 20-day moving average (MA) of 229.32, above the 50-day MA of 240.06, and below the 200-day MA of 322.47, indicating a neutral trend. The MACD of -3.57 indicates Negative momentum. The RSI at 60.45 is Neutral, neither overbought nor oversold. The STOCH value of 64.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HIKAL.

Hikal Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SEQUENT	58 Neutral	₹56.17B	132.97	―	―	14.39%	152.14%
MOREPENLAB	57 Neutral	₹24.30B	24.64	―	0.46%	-0.29%	-29.04%
UNICHEMLAB	54 Neutral	₹33.06B	37.37	―	―	25.42%	―
HIKAL	52 Neutral	₹29.64B	46.83	―	0.62%	-6.72%	-86.26%
INDOCO	40 Neutral	₹25.20B	-22.46	―	0.08%	-2.81%	-444.69%

Hikal Limited Corporate Events

Hikal Limited Reports Successful AGM Voting Results

Hikal Limited has announced the results of its 37th Annual General Meeting held on September 23, 2025, where the company shared the voting outcomes under Regulation 44 of SEBI Listing Regulations. The meeting, conducted via video conferencing, saw significant shareholder participation, with a high percentage of votes in favor of the resolutions presented. This announcement reflects Hikal Limited’s commitment to transparency and effective corporate governance, reinforcing its position in the industry and maintaining stakeholder confidence.

Hikal Limited’s 37th AGM Highlights Strategic Shift to Specialty Chemicals

Hikal Limited held its 37th Annual General Meeting on September 23, 2025, via video conferencing, adhering to regulatory guidelines. During the meeting, the company highlighted its performance for the fiscal year 2024-25 and discussed strategic initiatives to enter the specialty chemicals segment with significant growth potential. The AGM facilitated shareholder engagement, with management addressing queries and outlining future growth strategies.