Hemang Resources share price target 2024, 2025, 2030 | Another multibagger ?

Hemang Resources share price target 2024, 2025, 2030: Hello friends, today we will have a look at Hemang Resources Ltd. We will analyse the revenue, profit and loss, balance sheet and shareholding trends to determine the share price target of Hemang Resources from 2024 to 2030.

Overview of Hemang Resources

Hemang Resources Ltd was established in the year 1993 and was initially known as “Bhatia Industries and Infrastructure Limited”. The company is promoted by Bhatia Group of Indore.

The main business of Hemang Resources Ltd is coal trading but the company also has a strong foothold in real estate. 

Coal is an important fossil fuel in India but its supply is usually 20-25% less than its demand due to scarce reserves or non-availability. . 

In order to fill the demand and supply gap Hemang Resources imports coal from coalfields in Indonesia and South Africa and sells it to domestic companies. 

Hemang Resources used to trade in commodities like sand and soybean as well but now they have discontinued that.

Apart from coal trading the company has purchased massive quantities of land at key locations for their infrastructure division.

Hemang Resources share price target table

We have analysed the Balance sheet, Profit and Loss of Hemang Resources in detail below. However, if you do not wish to go through complete analysis, you can refer to the table below to find out Hemang Resources share price target 2024, 2025, 2030.

Hemang Resources share price target 2024, 2025, 2030

Analysis of Hemang Resources financial ratios

Let’s analyse some of the financial ratios of Hemang Resources to assess its fiscal health. 

Market cap and stock price

Let’s first discuss Hemang Resources Ltd stock price; currently around Rs 42.6, which represents a small cap company with only an approximate market cap of 56.2 crore.

P/E ratio

Since no stock P/E ratio is provided, we cannot determine if any particular company’s shares have been over or undervalued.

ROCE and ROE

ROCE of 42.4% indicates the company is making great returns on capital investments; similarly, its ROE of 32.3% suggests investors’ money is also reaping great dividends.

The return for the investors in the last 1 year is -17.5% which is not good but over the last 3 years the company has given a return of 97.8% to its investors.

Debt to Equity

Hemang Resources is almost debt free with a Debt to Equity ratio of 0.24% and a Debt of only 3.40 crore rupees. 

Sales and Net profit

Now let’s talk about some of the not so good ratios of the company which is the company’s profit after tax at ₹ -14.9 crore and a negative sales growth of -69.0 %.

The profit growth is also in negative at -168 % and the company is also not paying any dividend to the investors.

Conclusion

Overall the financial ratios of Hemang Resources look good but we will have to look at the company’s profit and loss and balance sheet to get a fair idea of how the company is truly performing.

Quarterly performance of Hemang Resources

Figures in Rs. Crores

Let’s have a look at the quarterly performance of Hemang Resources Ltd. to give you a better idea of how the company has been performing recently in terms of sales, operating profit, expenses and net profit.

Since the last 3 quarters, the sales of Hemang Resources have been falling. From 38 crores to only 38 lacs, the company has seen the company has lost a significant chunk of sales. 

The expenses have also fallen from 36.87 crores to 1.43 crore rupees but compared to the sales, the expenses have risen. 

Operating profit was a positive 1.20 crore in March 2023 and then turned to negative in subsequent quarters ending up at an operating loss of 1.05 crore in December 2023. This suggests that the company is spending more and earning less which is not a very promising sign for future investors.

Coming to the profit after tax or net profit, the company has not made any profit since the last 4 quarters. They have suffered losses of 1.47 crore, 11.66 crore, 73 lacs, and 1.05 crores in last 4 quarters.

Now to conclude, the company’s sales have been falling, expenses have been rising and losses are consistent which is a cause of concern for its investors. 

Analysis of annual profit and loss

Figures in Rs. Crores

When we look at the annual profit and loss of Hemang Resources, things appear to be somewhat optimistic. 

We will consider the data of the past 4 years for this analysis. 

In March 2020 the company’s sale was negligible and in March 2021 it went to zero. However, in Mar 2022 the sales went up to 66 crores and then in Mar 2023 to 205 crores. This rise in sales is promising which means that the company has acquired new clients.

The expenses have also climbed according to the sales but never outgrew the sales numbers which resulted in positive operating profit for Mar 2022, Mar 2023 at 16 crores and 10 crores respectively.

The company has been profitable in terms of net profit for the last 2 years as well. In March 2022 the net profit was 22 crores and for March 2023 it was 7 crores. These are decent numbers for such a small cap company.

Overall the company has been profitable and the rest of the numbers also promise a good future. 

Shareholding pattern of Hemang Resources Ltd.

Numbers in percentages

Right now there are only two types of shareholders in the company which are promoters and public.

Promoters

Promoters shareholding has been consistent at 63.66% for the past seven years. This indicates that the promoters trust the company and its future plans which is why they are not selling off their shares.

The major promoters include names like Surender Singh Bhatia, Gurvinder Singh Bhatia and Ishhar Overseas Pvt Ltd. etc. 

Public

Public shareholding has also stayed consistent at 36.35% since March 2021. Public investors include names like Investor Education And Protection Fund Authority Ministry Of Corporate Affairs and some Bhatia family members like Kulwant Singh Bhatia, Narinder Kaur Bhatia and Jasvinder Kaur Bhatia. 

Number of shareholders

There are very few shareholders in Hemang Resources Ltd. In March 2021 the total number of shareholders was 1049 but in December 2023, it rose to 5216. 

Balance sheet of Hemang Resources

Figures in Rs. Crores

As Hemang Resources’ balance sheet shows significant financial advances between March 2021 and September 2023, it reveals significant financial transformation. 

Over this timeframe the company was able to reduce total liabilities from Rs 64 crores in March 2021 to just Rs. 58 crores by September 2023 – showing significant decrease in financial obligations as they pay down debts more efficiently and pay down loans faster. 

Also impressive was that borrowings almost entirely disappeared decreasing from Rs 22 crores per March 2021 down to only 3 crores at March 2023 then remaining constant through September 2023!.

Also Read: Orient Green power share price target

However, reserves have shown significant fluctuations; after falling to negative figures in March 2020 they rebounded to Rs 13 crores by March 2023 before falling back down again by September 2023 to Rs.1 crore; which may reflect operational or market issues which affect retained earnings of the company.

Notable is that equity has remained constant at Rs 13 crores over all three years of this study, suggesting there were no equity injections or buybacks during that time frame. 

Furthermore, stagnation of fixed assets and capital work-in-progress (CWIP) at zero across each year raises red flags; suggesting there has been no substantial investments made into property, plant and equipment (PPE), possibly impacting long-term growth efforts of the business.

Finally, the asset base mirroring liabilities indicates a decrease overall. Other assets were the primary contributor to this decrease and signify that operational assets did not grow at an equivalent pace; suggesting the company is likely contracting operations and paying down debt before engaging in new growth investments or expansion plans.

Hemang Resources share price target 2024

According to the current analysis Hemang resources share price target for 2024 will be atleast Rs 52.40 and a maximum target of Rs 53.88.

Hemang Resources share price target 2025

Hemang resources is starting to get new clients and the sales numbers are rising, which should boost investors interest in the company. Based on the financial numbers the share price target of Hemang Resources in 2025 should be Rs 65.12.

Hemang Resources share price target 2030

Hemang Resources is virtually debt free and its stock has given 98% returns to the investors in the last 3 years. For a penny stock this is a good number despite the negative -17% returns in the last 1 year. We predict that the company will perform well in the long run. The share price target of Hemang Resources for 2030 will be Rs 94.45.

Coal washeries and plants of Bhatia Group

Bhatia Group currently runs washery facilities capable of processing 13.5 million tons annually; with hopes to double this capacity by 2022-2023 time.

Here are the washeries run by Hemang Resources Ltd.

Wani, WCL Area, Maharashtra

Bhatia Group began their journey towards producing high-grade coal in Wani, Maharashtra’s coal-rich area, by setting up their inaugural washery in 2002. They used an entry level Heavy Media Drum Separator initially; soon afterwards however they increased capacity by investing in cutting edge Heavy Media Bath technology from Humboldt Wedag India Pvt Ltd – one of India’s premier coal cleaning specialists.

Ghugus, WCL Area, Maharashtra.

Ghughus in Maharashtra’s coal zone can accommodate 4 million tons a year and stands out with the Zig – an innovative piece from Humboldt Wedag that stands out as being unique within India outside Coal India’s control, and one of the biggest such technologies in existence nationwide.

Jharsuguda, MCL Area, Orissa.

Down in Orissa’s Jharsuguda area of MCL, they employ Heavy Media Bath technology at their washeries. Capable of processing 2 million tons per year and fuelling local thermal power plants through its output, its output fuels local power generation facilities across Orissa.

Coke Oven Plant, Tamil Nadu

Tamil Nadu proved no exception; within just two years they established themselves with a LAM coke production facility with an enormous 0.36 million ton capacity – not too far away from Chennai’s bustling port and market, which quickly won over nearly all top steelmakers as well as various industrial clients from southern India. 

They also started up their 22.5MW Waste Heat Recovery Boiler Power Plant that began production back in March 2010.

Greenfield Expansion, Andhra Pradesh

Bhatia Group plans on meeting growing coke demand with another coke oven plant with 0.35 million-ton annual capacity in Andhra Pradesh that utilises waste heat as energy and produces electricity as part of its modern setup.

Also Read: Andhra Cements share price target

Conclusion

Hemang Resources is an old company but even after so many years, it’s a small cap company which indicates that the company is either operating in a low demand market or the clients are interested in getting the supplies from other coal importers. 

As far as the share price is concerned, it has been hovering on and around Rs 42 mark since last 1 year which shows that it is not amongst the favourite companies of investors. In short we would recommend you to enter at this point if you want to invest and if you get the profit, book it immediately. Please use stop loss as per your risk aptitude. Please do your own research before investing.

Disclaimer: Dear Readers, please be aware that we are not associated with SEBI (Securities and Exchange Board of India). The information found on this site should only be considered educational and should not be seen as financial advice or stock recommendations. Share price predictions should only be taken as an estimate and considered valid when there are positive market signals present; any uncertainty concerning either your company or market status won't be taken into consideration in this study. Though our informational site serves educational purposes, we cannot be held liable for any financial losses you might experience as a result of using it. Instead, it serves only to keep you up to date about the stock market and financial products so you can make better investment choices - please do your own research prior to any investment decisions being made by yourself or through third parties.