HOV Services Limited (HOVS) AI Stock Analysis

• Market Cap: ₹937.57M
• Dividend Yield: N/A
• Average Volume (3M): 1.86K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.97
• Revenue Growth: 125.93%
• EPS Growth: 61.50%
• Country: IN
• Employees: 652
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.39
• Shares Outstanding: 12,594,972
• 10 Day Avg. Volume: 1,396
• 30 Day Avg. Volume: 1,857
• PEG Ratio: 0.24
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 2.56
• P/FCF Ratio: -85.66
• 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: 60 Neutral
• Price Target: ₹73.00 ▲(4.30% Upside)

The overall stock score is primarily influenced by strong financial performance, despite cash flow challenges. Technical indicators suggest a bearish trend, which weighs down the score. Valuation is reasonable, but the lack of a dividend yield and bearish market momentum are significant considerations.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a positive trajectory, showcasing its ability to expand market reach and enhance product adoption.

Profitability

A solid net profit margin reflects effective cost management and operational efficiency, contributing to sustainable profitability.

Financial Leverage

Prudent financial leverage with a low debt-to-equity ratio ensures financial stability and flexibility, supporting long-term growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential difficulties in funding operations and growth, posing a risk to financial health and strategic initiatives.

Gross Profit Margin Decline

A declining gross profit margin suggests cost pressures or pricing challenges, which could affect profitability if not addressed.

Stockholders' Equity Decline

A decline in stockholders' equity could indicate financial risk, potentially affecting the company's ability to leverage equity for growth.

HOV Services Limited Business Overview & Revenue Model

Company Description

HOV Services Limited, together with its subsidiaries, provides software and IT enabled services in India and internationally. It offers software development, maintenance, and support services; and data entry and business process outsource services. The company was incorporated in 1989 and is headquartered in Pune, India.

How the Company Makes Money

HOV Services Limited generates revenue through multiple channels within its core service offerings. Primarily, the company earns money from contracts with clients who require BPO services, where it charges fees based on the volume of work processed or on a per-project basis. Additional revenue streams include subscription-based services for its document management and data processing solutions, which provide a steady income. HOVS also partners with technology providers to integrate advanced solutions into its offerings, which can lead to joint ventures or revenue-sharing agreements. The company benefits from long-term client relationships, which contribute to recurring revenue, and leverages economies of scale to maintain competitive pricing, thereby enhancing profitability.

HOV Services Limited Financial Statement Overview

Summary

HOV Services Limited shows strong revenue growth and profitability with effective financial leverage. However, declining gross profit margins and negative cash flow pose risks to financial stability.

Income Statement

HOV Services Limited has demonstrated strong revenue growth with a significant increase from the previous year, indicating a positive growth trajectory. The net profit margin is solid, suggesting effective cost management and profitability. However, the decline in gross profit margin over the years indicates potential cost pressures or pricing challenges that need to be addressed.

Balance Sheet

The company maintains a healthy equity ratio, showing a strong reliance on equity for financing. The debt-to-equity ratio is low, highlighting prudent financial leverage. However, the decline in stockholders' equity over the years might suggest potential risk if not addressed.

Cash Flow

HOV Services Limited faces challenges with negative free cash flow, which could impact its ability to fund operations and growth. The operating cash flow is also negative, reflecting potential struggles in converting revenue into cash. Positive trends in investing cash flow suggest strategic investments, but overall cash flow management requires improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	212.22M	224.68M	161.24M	120.55M	100.58M	96.55M
Gross Profit	39.12M	26.84M	38.81M	47.34M	43.90M	44.34M
EBITDA	57.76M	59.68M	44.16M	62.15M	35.29M	38.86M
Net Income	37.03M	42.17M	26.86M	45.69M	21.49M	25.72M
Balance Sheet
Total Assets	0.00	395.31M	356.88M	376.66M	452.73M	1.17B
Cash, Cash Equivalents and Short-Term Investments	53.74M	75.57M	108.92M	87.83M	46.28M	69.04M
Total Debt	0.00	14.05M	10.48M	14.19M	30.64M	29.75M
Total Liabilities	-233.84M	154.74M	128.46M	150.76M	153.22M	210.48M
Stockholders Equity	233.84M	240.57M	228.42M	225.90M	299.51M	959.37M
Cash Flow
Free Cash Flow	0.00	-6.72M	-34.21M	15.39M	-1.11M	16.63M
Operating Cash Flow	0.00	-6.44M	-34.21M	21.94M	-925.00K	16.79M
Investing Cash Flow	0.00	11.81M	16.14M	24.82M	11.69M	9.46M
Financing Cash Flow	0.00	-8.93M	-5.00M	-12.91M	-20.85M	-21.18M

HOV Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.99
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HOVS, the sentiment is Negative. The current price of 69.99 is below the 20-day moving average (MA) of 72.97, below the 50-day MA of 75.19, and above the 200-day MA of 61.95, indicating a neutral trend. The MACD of -0.93 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 28.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HOVS.

HOV Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOVS	60 Neutral	₹937.57M	18.14	―	―	125.93%	61.50%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ADROITINFO	55 Neutral	₹615.99M	34.14	―	―	38.47%	-83.43%
CTE	45 Neutral	₹830.39M	―	―	―	-4.97%	32.59%
PALREDTEC	44 Neutral	₹698.72M	-7.85	―	―	-15.69%	-73.80%
GSS	39 Underperform	₹518.98M	―	―	―	-14.85%	-128.21%