Opportunity in $NSE:HIKALDear Followers
I Hope this message finds you well. I wanted to provide you with an update on the stock NSE:HIKAL you've been following. The stock has recently taken support at a key level, indicating a potential opportunity for a short-term trade. my analysis suggests that there might be a favorable entry point for a short- Term position.
Stock Name- NSE:HIKAL
Support Level- 265-270
Entry Point- 270-275
Stop Loss Point- 238
Target Point- 295,310,330
Time Frame – 90-120 Days
I closely monitoring the stock's movement and will continue to provide you with timely updates as the situation evolves. If you have any questions or would like more detailed insights, please don't hesitate to reach out.
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HIKAL trade ideas
HIKAL LIMITED : INVESTMENT OUTLOOK**Comprehensive Analysis of Hikal Limited 🌐📊**
**Business Model 🏭**
Hikal Limited stands as a global frontrunner in the manufacturing realm, specializing in active pharmaceutical ingredients (APIs), intermediates, and specialty chemicals. The company navigates three key domains:
* **Pharmaceuticals:** Crafting a spectrum of APIs, including anti-infective, anti-diabetic, and anti-cancer drugs.
* **Crop Protection:** Pioneering in intermediates for herbicides, insecticides, and fungicides.
* **Specialty Chemicals:** Diversified production spanning flame retardants, plasticizers, and lubricants.
Hikal's business ethos revolves around forging enduring relationships, predominantly with multinational pharmaceutical and agrochemical giants. The company's prowess lies in robust manufacturing, adept product development, and regulatory mastery.
**Management 🤝**
Helmed by a cadre of seasoned professionals, Hikal is led by the visionary Founder and Executive Chairman, Jai Hiremath, boasting over four decades of industry experience. Steering the ship alongside is Managing Director Ramkrishna Rao, a stalwart within Hikal since 1992.
**Sales Breakdown 🌎💰**
Hikal's revenue stream paints a global canvas, with around 60% stemming from international markets. The top five customers contribute approximately 40% to the company's revenue.
**Financial Performance 📈💹**
Hikal boasts a robust financial tapestry, showcasing consistent growth in both sales and profits over the past five years. The figures tell a compelling story:
*Average Annual Growth:*
- Revenue: 15%
- Net Profit: 20%
**Financial Ratios (Last 5 Years) 📊:**
| Ratio | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Debt-to-Equity Ratio | 0.42 | 0.51 | 0.55 | 0.59 | 0.63 |
| EBITA Margin | 22.5% | 21.8% | 19.2% | 18.7% | 17.3% |
| Net Profit Margin | 15.8% | 14.2% | 12.5% | 11.9% | 10.4% |
| Return on Equity (ROE) | 21.4% | 19.3% | 17.0% | 16.2% | 14.3% |
**Recent Updates 🔄🚀**
* **USFDA Approval for API Facility:** October 2023 witnessed Hikal's triumph with USFDA approval for its new API facility in Mahad, India, focusing on the US market.
* **Strategic Supply Agreement:** September 2023 marked the signing of a multi-year supply agreement with a major pharmaceutical player, poised to be a revenue driver in the coming years.
**Positive Highlights 🌟📈**
* **Strong Growth Prospects:** Hikal is strategically positioned to leverage the burgeoning demand for APIs and specialty chemicals. The pharmaceutical industry's anticipated 5% CAGR and the agrochemical sector's projected 4% CAGR over the next five years augur well for Hikal.
* **Innovation Trailblazers:** With a dedicated R&D team, Hikal's commitment to innovation positions it as a leader, ensuring a competitive edge and sustained growth.
**Concerns to Note 🚨📉**
* **Regulatory Roulette:** Given the stringent regulations in the pharmaceutical and agrochemical domains, any regulatory shifts could wield substantial impact on Hikal's operations.
* **Forex Fluctuations:** The company's significant overseas revenue exposes it to foreign exchange risks, with fluctuations potentially affecting profit margins.
**Technical Analysis 📈📊**
Hikal's technical trajectory reveals a golden buying zone on the weekly chart. It finds support at weekly levels, with decreasing volumes and attempts to breach the 20 and 50 DMA range.
At present, Hikal appears as an opportune medium to long-term investment, offering a blend of low risk and high return.
**Conclusion 🌐📈**
In summation, Hikal emerges as a well-steered entity with a commendable growth track record. Positioned to ride the wave of API and specialty chemical demand, it's not without its risks, notably in regulatory dynamics and forex fluctuations.
Always remember, the stock market carries inherent risks. Seek opportunities with a judicious balance of low risk and high return.
*Happy Investing!* 🚀📈
Hikal...good accumulation zone for 20-30% upside After a decent run to 726 in sept'21 it has corrected and made a bottom around 240-50 in jul'22. Since than a good accumulation is going on and higher high kind of formation is in progress. Meanwhile there is a rumour of some family dispute among kalyani group management over family asset pool. Keeping that aside the chart structure is showing strength at lowere levels of 290-325 range.
With sector rotation Pharma is showing trend reversal and may outperform or lead nifty in coming 2-3qtrs. This renowned group with major presence in API and CRAMS can lead to a good returns to 375-90..425.
Hikal looking towards making new highsHikal Ltd. provides solutions related to Pharmaceuticals, Crop protection, Specialty Chemicals and Research & Technology. Hikal has five manufacturing facilities in India at Maharashtra, Gujarat, Karnataka and a Research & Technology centre at Maharashtra. Hikal CMP is 319.45.
Negative aspects of the company are high valuation (P.E = 50.2) & declining annual net profit. Positive aspects of the company are improving cash from operations, low debt, zero promoter pledge, FIIs are increasing stake, MFs are increasing stake & promoter holding increasing.
Entry in the stock can be taken after closing above 331. Targets in the stock will be 350 & 367. Long term target in the stock will be 383 & 403. Stop loss in the stock should be maintained at closing below 281.