Hikal Limited (HIKAL) AI Stock Analysis

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Hikal Limited

(NSE:HIKAL)

Select Model

Rating:56Neutral

Price Target:INR 220.00▼(-1.08% Downside)

Action:reiterated

Date:09/08/26

The score is held back primarily by weak recent profitability (loss-making earnings and uneven revenue), partially offset by resilient cash generation and a balance sheet with improving debt levels. Technically, the stock is in an uptrend versus key moving averages, but valuation remains pressured by negative earnings and a low dividend yield.

Positive Factors

Diversified specialty-chemicals and CDMO platformHikal operates across pharmaceuticals and crop protection while combining manufacturing with contract development, process development and scale-up capabilities. This diversified platform can support customer retention and create multiple routes to demand across regulated and non-regulated markets over the next several quarters.

Negative Factors

Recent profitability deteriorationThe swing from historical profitability to a recent net loss weakens earnings quality and reduces confidence in near-term returns from the operating platform. Margin compression or elevated operating costs could persist, limiting reinvestment capacity and making recovery dependent on restoring sustainable profitability.

Hikal Limited (HIKAL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 27.63B
Dividend Yield: 0.27%
Average Volume (3M): 76.19K
Price to Earnings (P/E): -556.6
Beta (1Y): 1.14
Revenue Growth: 8.93%
EPS Growth: -149.51%
Country: India
Employees: 3,595
Sector: General
Sector Strength: 55
Industry: Medical - Pharmaceuticals

Hikal Limited Business Overview & Revenue Model

Company Description

Hikal Limited, together with its subsidiaries, manufactures and sells various chemical intermediates, specialty chemicals, and active pharma ingredients to pharmaceutical, biotechnology, life sciences, animal health, crop protection, and specialty ch...

Hikal Limited Financial Statement Overview

Summary

Financials are mixed: cash flow is a strength (operating cash flow solid and free cash flow positive in 2026) and leverage improved with debt declining, but the income statement weakened sharply with profitability turning negative and uneven revenue momentum. The recent loss and margin/expense pressure materially reduce confidence despite balance-sheet support.

Income Statement

38Negative

Balance Sheet

64Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	17.33B	17.13B	18.60B	17.69B	20.05B	19.26B
Gross Profit	6.37B	5.17B	10.22B	9.05B	8.62B	8.83B
EBITDA	1.94B	1.48B	3.33B	2.67B	2.60B	3.40B
Net Income	-338.00M	-488.00M	908.00M	696.02M	783.82M	1.60B
Balance Sheet
Total Assets	0	23.65B	25.29B	24.87B	23.85B	22.13B
Cash, Cash Equivalents and Short-Term Investments	138.00M	136.00M	178.00M	181.93M	267.30M	217.09M
Total Debt	0	6.84B	7.65B	8.18B	7.48B	6.75B
Total Liabilities	-11.99B	11.67B	12.67B	12.99B	12.52B	11.45B
Stockholders Equity	11.99B	11.99B	12.62B	11.88B	11.33B	10.68B
Cash Flow
Free Cash Flow	1.28B	892.00M	1.43B	-174.80M	126.89M	204.19M
Operating Cash Flow	2.72B	2.37B	2.80B	1.87B	3.15B	2.94B
Investing Cash Flow	-1.46B	-1.46B	-1.36B	-1.74B	-2.92B	-2.84B
Financing Cash Flow	-1.29B	-943.00M	-1.44B	-270.00M	-76.80M	-55.58M

Hikal Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price222.40

Price Trends

50DMA216.55Positive

100DMA217.60Positive

200DMA203.98Positive

Market Momentum

MACD-1.11Negative

RSI56.64Neutral

STOCH76.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HIKAL, the sentiment is Positive. The current price of 222.40 is above the 20-day moving average (MA) of 211.18, above the 50-day MA of 216.55, and above the 200-day MA of 203.98, indicating a bullish trend. The MACD of -1.11 indicates Negative momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 76.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HIKAL.

Hikal Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:HIKAL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SUPRIYA	67Neutral	INR 66.99B	34.88	―	0.12%	28.14%	11.38%
IN:ROSSARI	65Neutral	INR 22.58B	15.34	―	0.12%	19.76%	11.74%
IN:DCAL	57Neutral	INR 23.66B	35.40	―	―	-20.86%	-34.51%
IN:WOCKPHARMA	57Neutral	INR 303.58B	75.30	―	―	25.70%	―
IN:HIKAL	56Neutral	INR 26.37B	-556.58	―	0.27%	8.93%	-149.51%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SOLARA	50Neutral	INR 30.25B	83.54	―	―	27.30%	456.80%

* General Sector Average

Performance Comparison

IN:HIKAL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:HIKAL	Hikal Limited	222.40	-11.99	-5.11%
IN:DCAL	Dishman Carbogen Amcis Ltd.	154.50	-112.95	-42.23%
IN:ROSSARI	Rossari Biotech Ltd	421.80	-218.08	-34.08%
IN:SOLARA	Solara Active Pharma Sciences Ltd.	645.40	80.65	14.28%
IN:SUPRIYA	Supriya Lifescience Limited	860.70	82.73	10.63%
IN:WOCKPHARMA	Wockhardt Limited	1899.80	548.15	40.55%

Hikal Limited Corporate Events

Hikal’s Bengaluru API Plant Secures Swissmedic GMP Nod, Bolstering Global Reach

Oct 30, 2026

Hikal Limited has announced that its active pharmaceutical ingredient facility in Bengaluru has received a Certificate of GMP Compliance from Swissmedic, confirming adherence to European Union–Switzerland mutual recognition standards. This cert...

Hikal Schedules Analyst and Investor Visit to Pune R&T Centre

Sep 2, 2026

Hikal Limited has scheduled an in-person group meeting for analysts and institutional investors at its Pune research and technology centre on September 4, 2026, starting at 12:00 p.m. IST. The visit will include interactions with company officials, w...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 07, 2026

Hikal Limited AI Stock Analysis