HOV Services Ltd - Stock Valuation and Financial Performance

BSE: 532761 | NSE: HOVS | BPO/ITeS | Small Cap

HOV Services Share Price

74.75 2.03 2.79%
as on 26-Dec'24 15:11

DeciZen - make an informed investing decision on HOV Services

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HOV Services stock performance -

mw4me loader
P/E Ratio (SA):
30.32
Market Cap:
91.6 Cr.
52-wk low:
51
52-wk high:
110.8

Is HOV Services Ltd an attractive stock to invest in?

1. Is HOV Services Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that HOV Services Ltd is a average quality company.

2. Is HOV Services Ltd undervalued or overvalued?

The key valuation ratios of HOV Services Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is HOV Services Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of HOV Services Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of HOV Services:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
HOV Services Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 0.6%2.9%2.7%-8.5%2.8%-103.7%113.2%-115.7%16.7%22.8%-
Value Creation
Index
-1.0-0.8-0.8-1.6-0.8-8.47.1-9.30.20.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 12.513.513.712.610.5119.710.112.116.119
Sales YoY Gr.-7.7%1%-8.1%-16%4.1%-11.9%4.1%19.9%33.7%-
Adj EPS -0.31.11-1.30.9-13.116-14.11.82.52.4
YoY Gr.-NA-11.2%-239%NA-1593.2%NA-188.4%NA44.3%-
BVPS (₹) 68.269.270.163.164.117.467.116.318.32223.2
Adj Net
Profit
-0.41.31.2-1.71.1-16.520.1-17.82.23.23
Cash Flow from Ops. -0.2-0.91.811.32.6-2.61.7-0.12.1-1.3-
Debt/CF from Ops. -32.9-7.73.30.51.7-1.41.5-10.20.2-0.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 2.8%8.9%18.6%33.7%
Adj EPS NA23.6%-45.8%44.3%
BVPS-11.8%-19.3%-31.1%20%
Share Price -6.8% 11.8% 7.1% -5.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
-0.41.61.4-21.4-32.337.8-33.910.212.610.6
Op. Profit
Mgn %
-8.34.95.46.77.319.223.721.818.415.516.9
Net Profit
Mgn %
-2.99.98.7-13.210.5-150.7208.3-176.918.419.915.6
Debt to
Equity
0.10.10.10.10.10.200.1000
Working Cap
Days
453351253190171228310331337251179
Cash Conv.
Cycle
4467868684104160151140138148

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 10.60%

Sales growth is growing at healthy rate in last 3 years 18.61%

Sales growth is good in last 4 quarters at 38.73%

Net Profit has been subdued in last 3 years -45.83%

Latest Financials - HOV Services Ltd.

Standalone Consolidated
TTM EPS (₹) 2.4 2.4
TTM Sales (₹ Cr.) 19.4 19.4
BVPS (₹.) 23.2 18.6
Reserves (₹ Cr.) 17 11
P/BV 3.13 3.92
PE 30.32 30.40
From the Market
52 Week Low / High (₹) 51.00 / 110.80
All Time Low / High (₹) 20.00 / 396.60
Market Cap (₹ Cr.) 91.6
Equity (₹ Cr.) 12.6
Face Value (₹) 10
Industry PE 81.8

Management X-Ray of HOV Services:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of HOV Services

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales12.5413.5113.6512.5510.5410.979.6610.0612.0616.12
Operating Expenses 13.5812.841311.739.788.867.507.879.8413.62
Manufacturing Costs0.940.390.360.380.410.500.290.300.390.41
Material Costs0000000000
Employee Cost 10.0610.229.968.857.146.785.816.268.1611.93
Other Costs 2.582.242.682.502.231.581.401.301.291.28
Operating Profit -1.040.660.650.820.762.112.162.192.212.51
Operating Profit Margin (%) -8.3%4.9%4.8%6.5%7.3%19.2%22.3%21.8%18.4%15.5%
Other Income 22.412.021.911.671.851.441.672.151.91
Interest 0.990.890.770.660.550.600.400.230.170.13
Depreciation 0.440.360.180.100.090.550.620.620.600.63
Exceptional Items 000-10.230-60.6960.69-66.0802.07
Profit Before Tax -0.471.831.72-8.261.80-57.8963.25-63.073.585.73
Tax -0.180.440.590.580.510.810.750.870.971.01
Profit After Tax -0.291.391.13-8.841.28-58.7062.50-63.942.614.72
PAT Margin (%) -2.3%10.3%8.3%-70.4%12.2%-535.0%647.3%-635.0%21.7%29.3%
Adjusted EPS (₹)-0.21.10.9-7.11.0-46.649.7-50.82.13.8
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 85.2986.7487.9079.1180.6421.8984.4220.4823.0627.67
Share Capital 12.5112.5312.5312.5412.5912.5912.5912.6012.6012.60
Reserves 72.7774.2175.3766.5868.069.3071.837.8910.4715.08
Minority Interest0000000000
Debt6.796.055.234.283.242.050.69000
Long Term Debt6.796.055.234.283.242.050.69000
Short Term Debt0000000000
Trade Payables1.080.970.900.750.780.960.670.670.930.83
Others Liabilities 7.322.870.270.581.122.432.623.572.602.84
Total Liabilities 100.4896.6394.3184.7285.7827.3488.4024.7226.5931.35

Fixed Assets

Gross Block3.373.540.420.570.762.262.534.494.594.55
Accumulated Depreciation2.803.130.180.260.340.901.472.082.593.18
Net Fixed Assets0.570.410.240.310.421.361.062.4121.37
CWIP 0000000000
Investments 75.9775.7866.0866.0866.085.3966.08000
Inventories0000000000
Trade Receivables2.624.873.944.122.815.824.955.206.108.28
Cash Equivalents 9.059.3510.633.765.522.575.152.854.8110.97
Others Assets12.266.2113.4210.4510.9512.2011.1614.2613.6810.73
Total Assets 100.4896.6394.3184.7285.7827.3488.4024.7226.5931.35

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -0.22-0.881.8211.292.56-2.641.67-0.112.10-1.33
PBT -0.471.831.721.971.802.802.573.013.583.66
Adjustment -0.38-0.980.16-0.09-0.100.130.38-0.30-0.98-0.78
Changes in Working Capital 0.8-1.540.239.241.33-5.07-0.68-2.350.12-3.55
Tax Paid -0.18-0.19-0.300.16-0.47-0.50-0.60-0.47-0.63-0.66
Cash Flow From Investing Activity 1.851.831.050.560.480.760.951.170.613.68
Capex -0.05-0.19-0.01-0.18-0.19000-0.650
Net Investments 0000000000
Others 1.902.021.060.740.670.770.951.171.273.68
Cash Flow From Financing Activity -1.36-1.48-1.59-10.12-1.28-2.01-2.12-2.09-1.29-0.50
Net Proceeds from Shares 0.150.0200.030.21000.0200
Net Proceeds from Borrowing 0000-0.94-1.05-1.20-1.35-0.690
Interest Paid -0.99-0.89-0.77-0.66-0.55-0.44-0.29-0.14-0.020
Dividend Paid 0000000000
Others -0.52-0.61-0.82-9.490-0.52-0.63-0.62-0.59-0.50
Net Cash Flow 0.27-0.531.281.731.77-3.890.50-1.031.421.85
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)-0.341.621.29-10.581.61-114.5117.58-121.91218.61
ROCE (%)0.562.922.66-8.522.78-103.72113.15-115.7316.6722.77
Asset Turnover Ratio0.120.140.140.140.120.190.170.180.470.56
PAT to CFO Conversion(x)N/A-0.631.61N/A2N/A0.03N/A0.8-0.28
Working Capital Days
Receivable Days80101118117120144204184171163
Inventory Days0000000000
Payable Days0000000000

HOV Services Ltd Stock News

HOV Services Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HOV Services on 26-Dec-2024 15:11 is ₹74.75.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 26-Dec-2024 15:11 the market cap of HOV Services stood at ₹91.59.
The latest P/E ratio of HOV Services as of 26-Dec-2024 15:11 is 30.32.
The latest P/B ratio of HOV Services as of 26-Dec-2024 15:11 is 3.13.
The 52-week high of HOV Services is ₹110.8 and the 52-week low is ₹51.00.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HOV Services is ₹19.42 ( Cr.) .

About HOV Services Ltd

HOV Services was incorporated in 1989 under the Companies Act, 1956 as Codec Communications Private Limited under registration number 25-14448 by Anil Rajadhyaksha and Sunil Rajadhyaksha.

The Company commenced its operations as a software services company on January 10, 1989. The name of the Company was changed to HOV Services Private Limited on February 27, 2006. The Company became a public company on January 5, 2006 and the name of the Company was changed to HOV Services Limited on March 9, 2006.

On January 31, 2002 Digital Boardwalk Incorporated (a company created as an acquisition vehicle) acquired 1,694 shares of the Company of the face value Rs. 100 comprising 100% of the issued and outstanding shares of the Company, which were held by Anil Rajadhyaksha and Sunil Rajadhyaksha for a consideration of $ 36,460. Upon completion of the acquisition, the Company retained the services of Anil Rajadhyaksha and Sunil Rajadhyaksha. Anil Rajadhyaksha has since resigned from the Board of the Company, while Sunil Rajadhyaksha continued as one of the Promoters of the Company. Subsequent to this acquisition, the Company entered into the BPO market and became a 100% export oriented company approved under the STPI Scheme.

The company strives to exceed expectations for every one of our customers. As a leader in Global Business Process Outsourcing, they develop fully integrated solutions that combine best-of-breed technology, leading-edge infrastructure and domain expertise to give you the most streamlined process available. Their end to end solutions for healthcare, banking and publishing and their e-content management solutions coupled with workflow based large volume transaction processing services set standards for the industry. HOV Services applies LEAN Six Sigma techniques to improve quality, reduce cost and improve cycle time of your business processes.

HOV Services' customers include over 50% of FORTUNE 100® companies across key verticals such as financial services, telecommunications, healthcare, insurance, construction, publishing, finance and accounting and government. Their customers are serviced from more than 50 locations across North America, as well as India, China and Mexico and their dedicated base of more than 12,000 employees are committed to exceeding expectations every time.

Services offered by the company includes:

BPO Services:

  • Transaction Management
  • Risk Management
  • Content Management
  • Construction Services

HOV Services provides critical support to a wide range of firms in the financial services sector, including consumer credit cards, retail and auto financing, personal loans, mortgages and other banking products. With years of industry experience and 24/7 operational capabilities our clients are able to enhance their operational and customer service capabilities while keeping costs down. Furthermore our outsourced services are tailored to comply with the ever changing regulatory and risk landscape of the financial services marketplace allowing clients to reduce their compliance burden.

  • Industrial Services
  • Financial Services 
  • Healthcare
  • Telecommunications
  • Manufacturing
  • Government
  • Publishing 
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