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HGS

HGS - Hinduja Global Solutions Limited Share Price

Commercial Services & Supplies

537.05-3.70(-0.68%)
Market Closed as of Aug 8, 2025, 15:30 IST

Valuation

Market Cap2.68 kCr
Price/Earnings (Trailing)22.11
Price/Sales (Trailing)0.54
EV/EBITDA3.84
Price/Free Cashflow12.58
MarketCap/EBT44.87
Enterprise Value3.12 kCr

Fundamentals

Revenue (TTM)4.96 kCr
Rev. Growth (Yr)3.2%
Earnings (TTM)100.72 Cr
Earnings Growth (Yr)-101.9%

Profitability

Operating Margin1%
EBT Margin1%
Return on Equity1.28%
Return on Assets0.90%
Free Cashflow Yield7.95%

Price to Sales Ratio

Latest reported: 1

Revenue (Last 12 mths)

Latest reported: 5 kCr

Net Income (Last 12 mths)

Latest reported: 101 Cr

Growth & Returns

Price Change 1W-6%
Price Change 1M6.6%
Price Change 6M-8.3%
Price Change 1Y-29.5%
3Y Cumulative Return-23.2%
5Y Cumulative Return10%
7Y Cumulative Return5.6%
10Y Cumulative Return8.8%

Cash Flow & Liquidity

Cash Flow from Investing (TTM)502.29 Cr
Cash Flow from Operations (TTM)457.17 Cr
Cash Flow from Financing (TTM)-898.18 Cr
Cash & Equivalents751.69 Cr
Free Cash Flow (TTM)213.51 Cr
Free Cash Flow/Share (TTM)45.9

Balance Sheet

Total Assets11.17 kCr
Total Liabilities3.32 kCr
Shareholder Equity7.85 kCr
Current Assets7.8 kCr
Current Liabilities2.33 kCr
Net PPE387.79 Cr
Inventory25.92 Cr
Goodwill995.43 Cr

Capital Structure & Leverage

Debt Ratio0.11
Debt/Equity0.15
Interest Coverage-0.74
Interest/Cashflow Ops3

Dividend & Shareholder Returns

Dividend/Share (TTM)7
Dividend Yield1.14%
Shares Dilution (1Y)0.00%
Shares Dilution (3Y)11.3%

Risk & Volatility

Max Drawdown-76%
Drawdown Prob. (30d, 5Y)62.69%
Risk Level (5Y)48.8%
Pros

Balance Sheet: Strong Balance Sheet.

Smart Money: Smart money has been increasing their position in the stock.

Cons

Past Returns: Underperforming stock! In past three years, the stock has provided -23.2% return compared to 14.6% by NIFTY 50.

Growth: Poor revenue growth. Revenue grew at a disappointing -2.5% on a trailing 12-month basis.

Insider Trading: Significant insider selling noticed recently.

The Good, Bad and Ugly
Growth
Measures how quickly a company is expanding through metrics like revenue growth, earnings growth, and cash flow growth over time. Strong growth can indicate future potential.
Profitability
Shows how efficiently a company turns business activities into profit, using metrics like profit margins, return on equity (ROE), and return on assets (ROA).
Size
Indicates the company's market presence through metrics like market capitalization, total assets, and revenue. Size can influence stability and market influence.
Dilution Rank
Tracks how much the company's shares have increased or decreased over time. Lower dilution means existing shareholders maintain stronger ownership stakes.
Balance Sheet
Evaluates the company's financial health by analyzing assets, debts, and equity. A strong balance sheet indicates financial stability and flexibility.
Momentum
Measures the strength and speed of price movements, showing whether the stock is gaining or losing market favor over different time periods.
Technicals
Analyzes price patterns, trading volumes, and other market indicators to identify potential trading opportunities and market trends.
Smart Money
Tracks the investment activities of institutional investors, hedge funds, and other large financial players who often have deep research capabilities.
Insider Trading
Monitors buying and selling of company shares by executives, directors, and other insiders who may have unique insights into the company's prospects.

Investor Care

Dividend Yield1.14%
Dividend/Share (TTM)7
Shares Dilution (1Y)0.00%
Earnings/Share (TTM)26.1

Financial Health

Current Ratio3.35
Debt/Equity0.15

Technical Indicators

RSI (14d)57.46
RSI (5d)16.39
RSI (21d)58.36
MACD SignalBuy
Stochastic Oscillator SignalHold
Grufity SignalBuy
RSI SignalHold
RSI5 SignalBuy
RSI21 SignalHold
SMA 5 SignalSell
SMA 10 SignalSell
SMA 20 SignalBuy
SMA 50 SignalBuy
SMA 100 SignalBuy

Summary of Latest Earnings Report from Hinduja Global Solutions

Summary of Hinduja Global Solutions's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.

Last updated:

Hinduja Global Solutions Limited provided an optimistic outlook during the Q4 & FY2025 earnings conference call held on May 29, 2025. Key highlights included total income of Rs.1,297.7 crore (Rs.4,958 crore for FY2025), operating revenue at Rs.1,161.1 crore (Rs.4,404.2 crore for FY2025), and an EBITDA of Rs.279 crore (Rs.811.8 crore for FY2025) with EBITDA margins at 21.5% for Q4 and 16.4% for the year. Management acknowledged headwinds from political uncertainties resulting in extended sales cycles but noted positive developments, including new client acquisitions whose contributions will be realized in the upcoming fiscal year.

Venkatesh Korla, the newly appointed Global CEO, emphasized focusing on AI-powered digital operations, highlighting three strategic pillars for harnessing Agentic AI: AI Strategy & Implementation Services, AI-Enabled Package Solutions, and Agent X Expansion. Key objectives outlined included accelerating customer time-to-value, enhancing delivery efficiency, and positioning the company as a solution-led partner.

For FY2026, the company plans to launch prioritized AI solutions while building a dedicated package solutions team to boost customer acquisitions. The management reiterated the importance of focusing on mid-market clients and leveraging digital capabilities to drive growth.

The management team expressed confidence in achieving stronger margins and expanding the revenue mix toward digital services. The broadband sector in India is projected to see significant growth, with a focus on Tier-2 and Tier-3 markets, as the subscriber base could double over the next five years. Additionally, HGS is exploring opportunities in enterprise broadband with its CelerityX division and enhancing customer engagement through improved service and technology integration.

Overall, Hinduja Global Solutions reflects a solid strategic plan incorporating AI, market diversification, and enhanced operational efficiencies, aimed at driving future growth.

Last updated:

Q&A Section of the Earnings Transcript

Question 1:

"Could you please elaborate on how the centers in our BPM business are performing? What kind of scale and potential do you see from the new tech services center in Bangalore and the CX hub in Cape Town?"

Answer: The Bangalore tech services center is vital for North America, our primary market. The Cape Town hub shows promising growth, requiring additional space due to strong demand. We're optimistic about scaling operations there, attracting interest from markets like the UK and US.

Question 2:

"Are we facing any delays in contracts in Q4? If yes, when can we expect normalization?"

Answer: It's challenging to provide a clear answer due to global market uncertainties. Larger deals are taking longer, but we are seeing good momentum in the mid-market segment, where decision cycles are shorter.

Question 3:

"At the standalone level, when can we expect breakeven considering significant losses?"

Answer: Standalone results comprise our Philippine branch and India delivery for the US and UK. We're focusing on revenue growth and cost rationalization to improve performance, with potential cross-selling strategies in place.

Question 4:

"What steps are we taking to enhance revenue and improve margins in the BPM business?"

Answer: We're expanding the CX business in offshore markets, prioritizing cost-efficient locations like South Africa and Colombia. By shifting service delivery to these hubs, we aim to enhance margins even if revenue per client decreases.

Question 5:

"What measures are we implementing to enhance the profitability of our media business?"

Answer: Our strategy involves penetrating Tier-2 and Tier-3 markets where competition is lower. We're also leveraging our existing digital TV infrastructure to expand broadband services, ensuring strong entry at lower costs.

Question 6:

"Is there a structured plan regarding the cash reserves on the balance sheet?"

Answer: Our cash is primarily allocated for strategic acquisitions, with a cautious approach to ensure we're not overpaying. We look for opportunities that align with our long-term objectives, focusing on tech-driven deals.

Question 7:

"How do you envision HGS evolving by May 2027, especially regarding potential acquisitions?"

Answer: We plan to reduce our onshore operations and increase our offshore presence. By the next three years, we're targeting a shift in our revenue mix to 68% digital and 32% traditional, improving profitability through higher margins in digital services.

Revenue Breakdown

Analysis of Hinduja Global Solutions's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.

Last Updated: Jun 30, 2025

DescriptionShareValue
Business Process Management71.2%752.5 Cr
Media and Communications28.8%303.7 Cr
Total1.1 kCr

Share Holdings

Understand Hinduja Global Solutions ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.

Holding Pattern

Share Holding Details

Shareholder NameHolding %
HINDUJA GROUP LIMITED37.85%
AMAS MAURITIUS LIMITED14.04%
HINDUJA REALTY VENTURES LIMITED6.41%
LEGENDS GLOBAL OPPORTUNITIES (SINGAPORE) PTE. LTD.4.99%
BRIDGE INDIA FUND2.98%
HARSHA ASHOK HINDUJA2.61%
ASHOK PARMANAND HINDUJA2.46%
INDUSIND INTERNATIONAL HOLDINGS LTD1.5%
UNICO GLOBAL OPPORTUNITIES FUND LIMITED1.25%
ALLSTARS INVESTMENTS LIMITED1.07%
AMBIKA ASHOK HINDUJA0.83%
AASIA CORPORATION LLP0.79%
SHOM ASHOK HINDUJA0.65%
VINOO SRICHAND HINDUJA0.3%
A P HINDUJA HUF0.25%
HINDUJA PROPERTIES LIMITED0.13%
Hinduja Finance Limited0%
SHANOO S. MUKHI0%

Overall Distribution

Distribution across major stakeholders

Ownership Distribution

Distribution across major institutional holders

Is Hinduja Global Solutions Better than it's peers?

Detailed comparison of Hinduja Global Solutions against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.

Ticker
Name
Mkt Cap
Revenue
Price %, 1M
Returns, 1Y
P/E
P/S
Rev 1-Yr
Inc 1-Yr
MPHASISMphasis49.94 kCr14.8 kCr-4.60%-7.70%28.633.37--
FSLFirstsource Solutions23.59 kCr7.98 kCr-13.00%+36.80%39.172.96--
ECLERXeClerx Services17.38 kCr3.6 kCr+3.90%+52.40%30.054.83--
INTELLECTINTELLECT DESIGN ARENA14.41 kCr2.69 kCr-7.20%+4.00%40.425.35--
DATAMATICSDatamatics Global Services5.2 kCr1.77 kCr+41.60%+39.80%25.332.94--

Sector Comparison: HGS vs Commercial Services & Supplies

Comprehensive comparison against sector averages

Comparative Metrics

HGS metrics compared to Commercial

CategoryHGSCommercial
PE22.1125.58
PS0.540.68
Growth-2.5 %7.7 %
0% metrics above sector average

Performance Comparison

HGS vs Commercial (2021 - 2025)

Although HGS is underperforming relative to the broader Commercial sector, it has achieved a 0.6% year-over-year increase.

Key Insights
  • 1. HGS is NOT among the Top 10 largest companies in Commercial Services & Supplies.
  • 2. The company holds a market share of 2.1% in Commercial Services & Supplies.
  • 3. In last one year, the company has had a below average growth that other Commercial Services & Supplies companies.

Income Statement for Hinduja Global Solutions

Consolidated figures (in Rs. Crores) /
Standalone figures (in Rs. Crores) /

Balance Sheet for Hinduja Global Solutions

Consolidated figures (in Rs. Crores) /
Standalone figures (in Rs. Crores) /

Cash Flow for Hinduja Global Solutions

Consolidated figures (in Rs. Crores) /
Standalone figures (in Rs. Crores) /

What does Hinduja Global Solutions Limited do?

Hinduja Global Solutions Limited provides business process management services in the United States, Canada, the United Kingdom, rest of Europe, India, and internationally. It provides technology services in the areas of artificial intelligence, automation, data analytics, and cloud. The company also offers digital marketing services, including agency partnership and collaboration, social media monitoring and engagement, content moderation, and online reputation management; and outsourcing solutions, comprising back office outsourcing, contact center outsourcing, and staffing solutions. It serves banking, finance, insurance, consumer packaged goods, media, retail, technology, and telecommunications industries. The company was formerly known as HTMT Global Solutions Limited and changed its name to Hinduja Global Solutions Limited in December 2008. Hinduja Global Solutions Limited was founded in 1973 and is based in Bengaluru, India.

Industry Group:Commercial Services & Supplies
Employees:18,036
Website:hgs.cx