Hirect Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Hirect Ltd trades at ₹1,274, in a confirmed uptrend and 19 weeks into that stage. That is +31.9% against its own 200-day average. It sits at 91% of a 52-week range of ₹604 to ₹1,338. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 31 straight weeks.

Today the stock is in a confirmed uptrend — week 19 of stage 2, confirmed. At ₹1,274 it trades +31.9% versus its 200-day average and sits at 91% of its 52-week range (₹604–₹1,338).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +4,014% while the NIFTY 500 moved +277% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 31 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Hirect Ltd trades at 115.0× P/E, about the priciest it has ever traded. Its long-run median P/E is 65.9×, measured across 2.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 115.0× is about the priciest it has ever traded, against a long-run median of 65.9× measured over 2.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +21.1% against a +54.1% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Hirect Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE lifting at 30.1% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

45.3/100 — rank 3 of 7 in Electronics - Equipment/Components · 93% evidence confidence

Hirect Ltd scores 45.3 out of 100 against the 7 companies it is compared with in Electronics - Equipment/Components, ranking 3. Price leads the evidence: RS versus the benchmark is 41.3%, but earnings trajectory is weak. Wait for revenue and profit confirmation.

The four contributions add to the total exactly: 9.7 + 12.8 + 4.3 + 18.5 = 45.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Hirect Ltd reported ₹258 Cr of revenue in the Jun 26 quarter, +20.3% year on year. That is the 12th straight quarter of year-on-year growth. Over 2 years it has compounded at 38.9% a year. The last full year, FY26, came in at ₹999 Cr. The last four reported quarters add to ₹1,043 Cr.

FY26 revenue came in at ₹999 Cr (+52.5% on the year), capping 2 years at 38.9% compound. The latest quarter (Jun 26) printed ₹258 Cr, +20.3% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +43.2% growth against the decade's 38.9% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +42.0% over the last 4 quarters against +37.0%/yr over the last 8 — accelerating; TTM profit −24.7% vs +35.7%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Hirect Ltd's operating margin is 5.1% in the Jun 26 quarter, −6.2 percentage points against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 9.0% to 11.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 5.1%, −6.2 pp against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 9.0%–11.0%.

🚨 Why the margin moved: operating margin went −6.2 pp year on year while gross margin went +2.1 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Hirect Ltd earned ₹6.5 Cr of net profit in the Jun 26 quarter, −49.1% year on year. Full-year FY26 profit was ₹39.0 Cr. The 2-year compound rate is 73.2%. That is 2.5% of the quarter's revenue. The same quarter a year earlier earned ₹12.8 Cr. 1 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹6.5 Cr, −49.1% year on year. On the full year, FY26 printed ₹39.0 Cr (+5.4%), and the 2-year compound rate is 73.2%.

🚨 Why profit moved: revenue contributed +20.3% and the margin −6.2 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit −23.4% vs revenue +43.2%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 175% of Hirect Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹86.0 Cr of operating cash against ₹39.0 Cr of profit. After ₹101 Cr of capital spending, ₹−15.0 Cr was left as free cash.

FY26: operating cash of ₹86.0 Cr against reported profit of ₹39.0 Cr, leaving free cash of ₹−15.0 Cr after ₹101 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 175% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 175%: the cash cycle held roughly steady between FY24 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 5.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Hirect Ltd's cash conversion cycle runs 105 days in FY26, down from 110 days in FY24. Capital spending ran ₹116 Cr over the last 2 years. At FY26 sales of ₹999 Cr each day of that cycle holds about ₹2.7 Cr, so roughly ₹287 Cr sits inside the business at any moment.

FY26: debtors at 90 days, inventory at 74 days — roughly 2.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 105 days, tighter than FY24's 110.

The full loop: cash goes out to suppliers and production on day 0; stock waits 74 days to sell; customers pay about 90 days after that; and suppliers themselves are paid at 59 days — netting out to the 105-day cycle.

In money terms: at FY26 sales of ₹999 Cr, each day of the cycle holds about ₹2.7 Cr — so the 105-day loop keeps roughly ₹287 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹116 Cr over the last 2 fiscal years against ₹22.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹10.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Hirect Ltd earns a ROCE of 19% in FY26. Return on invested capital clears the cost of that capital by −3.3 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 3.9% net margin on 1.51× asset turns.

FY26 ROCE is 19%.

🚨 Why the return is what it is — the wiring (FY26): 3.9% net margin × 1.51× asset turns × 3.17× balance-sheet leverage ≈ 18.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 8.7% − 12.0% = a −3.3 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Hirect Ltd carries total debt of ₹245 Cr against shareholder equity of ₹206 Cr as of Mar 26, a debt-to-equity of 1.19. On the annual view that ratio went from 0.70 in FY22 to 1.19 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹245 Cr against shareholder equity of ₹206 Cr — a debt-to-equity of 1.19. On the annual view, debt-to-equity went from 0.70 (FY22) to 1.19 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 3.2 points of Hirect Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 3.2% of the company. Promoters moved −1.5 points over the same window, to 42.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +3.2 points over 8 quarters to 3.2%; Promoters: −1.5 points over 8 quarters to 42.6%; Foreign institutions: +0.9 points over 8 quarters to 6.8%.

Why the register moved: domestic institutions drove it (+3.2 points), absorbed on the other side by promoters (−1.5 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Hirect Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions