Hikal Limited (HIKAL) AI Stock Analysis

• Market Cap: ₹33.07B
• Dividend Yield: 0.45%
• Average Volume (3M): 26.79K
• Price to Earnings (P/E): 52.3
• Beta (1Y): 1.18
• Revenue Growth: 1.67%
• EPS Growth: -6.63%
• Country: IN
• Employees: 2,061
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.80
• Shares Outstanding: 123,300,750
• 10 Day Avg. Volume: 27,617
• 30 Day Avg. Volume: 26,787
• 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: ₹350.00
• Price Target Upside: 30.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ₹350.00 ▲(30.50% 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 Business Overview & Revenue Model

Company Description

Hikal Limited is an Indian company engaged in the pharmaceutical and agrochemical industries. It provides world-class active ingredients, intermediates, and research and development services to global pharmaceutical, animal health, biotechnology, crop protection, and specialty chemicals companies. The company operates through two main segments: Pharmaceuticals and Crop Protection. Its core products include active pharmaceutical ingredients (APIs), custom manufacturing solutions, and crop protection chemicals.

How the Company Makes Money

Hikal 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.60B	17.69B	20.05B	19.26B	17.07B
Gross Profit	10.22B	9.05B	8.45B	8.83B	7.59B
EBITDA	3.33B	2.67B	2.60B	3.40B	3.24B
Net Income	908.00M	696.02M	783.82M	1.60B	1.33B
Balance Sheet
Total Assets	25.29B	24.87B	23.85B	22.13B	19.13B
Cash, Cash Equivalents and Short-Term Investments	180.00M	181.93M	593.05M	217.09M	168.06M
Total Debt	7.65B	8.18B	7.48B	6.75B	6.10B
Total Liabilities	12.67B	12.99B	12.52B	11.45B	9.80B
Stockholders Equity	12.62B	11.88B	11.33B	10.68B	9.33B
Cash Flow
Free Cash Flow	1.43B	-174.80M	126.89M	204.19M	714.19M
Operating Cash Flow	2.80B	1.87B	3.15B	2.94B	2.29B
Investing Cash Flow	-1.36B	-1.74B	-2.92B	-2.84B	-1.56B
Financing Cash Flow	-1.44B	-270.00M	-76.80M	-55.58M	-968.68M

Hikal Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 268.20
• 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:HIKAL, the sentiment is Negative. The current price of 268.2 is below the 20-day moving average (MA) of 320.35, below the 50-day MA of 344.06, and below the 200-day MA of 374.44, indicating a bearish trend. The MACD of -18.66 indicates Positive momentum. The RSI at 14.34 is Positive, neither overbought nor oversold. The STOCH value of 7.93 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	70 Outperform	¥179.17B	11.24	5.69%	3.09%	2.75%	-12.76%
MOREPENLAB	65 Neutral	₹25.58B	27.74		―	2.12%	-26.90%
UNICHEMLAB	58 Neutral	₹34.11B	26.07		―	22.04%	―
HIKAL	55 Neutral	₹33.07B	52.26		0.45%	1.67%	-6.63%
SEQUENT	52 Neutral	₹43.62B	198.76		―	13.26%	―
INDOCO	47 Neutral	₹26.90B	96.22		0.53%	-8.28%	-247.34%

Hikal Limited Corporate Events

Hikal Limited Updates RTA Contact Information

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.