Hercules Hoists Limited (HHL), a part of the prestigious Bajaj group, is a prominent material handling solutions provider in India. Incorporated in 1962 and based in Mumbai, HHL has established itself as a veteran player in the industrial equipment sector. The company specializes in manufacturing Electric Hoists, Trolleys, and Cranes, boasting an annual production capacity of 23,400 units.
The company operates through a comprehensive business model focused on material handling equipment solutions. Its primary segment is Material Handling Equipment, offering a range of products and services including:
- Manufacturing, sales, distribution, and marketing of mechanical hoists, electric chain hoists, and wire rope hoists.
- Stackers, storage, and retrieval solutions.
- Overhead cranes in standard and extended standard ranges.
- Manipulators and material handling automation solutions.
HHL provides capital equipment and solutions utilized across diverse industrial verticals such as automotive and auto ancillary, energy and power, infrastructure, heavy and light engineering, steel and metals, chemicals and petrochemicals, logistics, textile, and food processing. The company operates two production facilities located in Khalapur, Raigad, Maharashtra, and Chakan, Pune, Maharashtra.
Hercules Hoists has a market capitalization reported between approximately ₹534.14 Crore and ₹662 Crore (as of recent data). The stock has experienced significant volatility over the past year, with a notable correction. Hercules Hoists Ltd share price has declined from its 52-week high, indicating substantial market adjustments.
- 52-Week High: ₹310.00 - ₹710.00 (depending on data source)
- 52-Week Low: ₹111.68 - ₹112.40 (depending on data source)
The company's recent financial performance shows mixed trends across different periods.
- Q1 FY2024-2025: Net profit increased by 23.49% year-on-year to ₹5.94 Crore.
- Quarterly Growth: However, profits saw a decline of -49.87% compared to the previous three months.
Annual Performance (Consolidated):
- FY 2023-24: Reported a profit of ₹35.98 Crore on a total income of ₹179.53 Crore.
- Quarter ended 2024: Reported a profit of ₹5.94 Crore on a total income of ₹41.95 Crore.
Key Financial Ratios and Metrics:
- Return on Equity (ROE): Low at 2.82% over the last 3 years.
- P/E Ratio: 14.85
- P/B Ratio: 0.56
- Dividend Yield: 2.40%
- Dividend Payout: Low at 14.9% of profits over the last 3 years.
- Promoter Holding: Stands at a strong 69.6%, indicating significant management control and confidence. This holding has remained stable.
- Listing Details: The company was listed on February 19, 2008.
- Chairperson: Shekhar Bajaj, reinforcing its association with the Bajaj group leadership.
Hercules Hoists has focused on innovation and strategic partnerships to enhance its product offerings.
- In 2000-2001, the company developed new ranges of Chain Electric Hoists and Ratchet Lever Hoists for domestic and export markets.
- It partnered with M/s Bull S.r.l. Italy to launch a new range of Wire Rope Electric Hoists.
A significant corporate restructuring occurred on February 1st, 2001, when Hercules bought out its 50:50 Joint Venture partner, M/s Batliboi Ltd. Subsequently, Indef Marketing Services became a wholly-owned subsidiary of Hercules, effective from March 23, 2001.
The company maintains a healthy financial position with a minimal debt burden. Hercules Hoists is almost debt-free, which provides significant financial flexibility and reduces interest expenses, contributing positively to profitability margins.
- Earnings include an other income of ₹6.15 Crore, suggesting additional revenue streams beyond core operations.
Hercules Hoists Ltd belongs to the Industrials sector, specifically within the Industrial Machinery sub-sector. The company operates in a specialized niche of material handling equipment, serving a diverse range of industrial verticals across India. Its established brand presence, backed by the Bajaj group, and decades of operational experience provide competitive advantages.
The material handling industry is poised to benefit from India's ongoing industrial growth, infrastructure development, and manufacturing expansion. This positions Hercules Hoists to capitalize on these macro trends, notwithstanding short-term performance fluctuations.
