Imagine a Bajaj group company that started in 1962 with the noble cause of lifting heavy things. Fast forward to 2025, and Hercules Hoists (Indef brand) is now better known for lifting dividends out of investment income than for hoists. With a 93x P/E, zero debt, and ROE of 0.7%, the stock looks like it’s trying to lift itself but forgot to plug in the motor.
2. Introduction
Hercules Hoists Ltd (HHL), once a pure-play material handling equipment maker, has been through more facelifts than a Bollywood star chasing comeback roles. After decades of producing chain pulley blocks, electric hoists, and cranes, the company decided in FY24 to separate the “real business” (manufacturing) from the “chill business” (investments).
So now, the newly formed Indef Manufacturing Ltd (IML) gets to sweat it out making hoists and cranes, while HHL sits back managing investments like a desi version of a sleepy family office. Essentially, Bajaj said, “Bhai, tu factory sambhal, main dividends enjoy karta hoon.”
The market isn’t sure what to do—should it value HHL as a capital goods manufacturer, or as a quasi-investment holding company? That confusion explains the comical valuation mismatch: stock trades at just 0.6x book value, but 93x earnings. Classic case of “low marks in maths, high marks in confusion.”
What’s more, the company’s Q1 FY26 numbers looked like a magician’s trick gone wrong—sales at zero, profit dipping into the red, and EPS showing -0.00. Yet, it proudly sports a 2.5% dividend yield, reminding investors: “At least we give you pocket money.”
Question: Do you think the market loves the Indef brand legacy, or is this just sympathy voting for Bajaj surname?
3. Business Model – WTF Do They Even Do?
Before the demerger, HHL’s bread and butter was:
Mechanical and electric hoists – chain pulley blocks, wire rope hoists, and trolleys.
Cranes and stackers – industrial lifting gear for warehouses, EPC projects, and plants.
Automation solutions – manipulators, storage and retrieval solutions.
Post-demerger, the manufacturing side has moved to Indef Manufacturing Ltd. What’s left in HHL? A nice portfolio of investments, dividend income, and some residual spares/royalty revenues. Basically, earlier they made cranes, now they just make passive income.
They also have a strong distribution network—28 states in India and 12 countries abroad. But guess what? That network is now technically part of Indef Manufacturing. So HHL investors are left with the financial equivalent of an empty warehouse.
If you’re lazy: Think of HHL as that friend who once went to the gym, but now only posts old workout selfies while living off rental income.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
0.00 Cr
41.05 Cr
0.00 Cr
-100%
—
EBITDA
-0.13 Cr
4.55 Cr
-0.16 Cr
-102.9%
18.8%
PAT
-0.01 Cr
4.81 Cr
0.00 Cr
-100.2%
—
EPS (₹)
-0.00
1.50
0.00
—
—
Commentary: This quarter’s numbers look like they belong to a zombie company. Revenue has vanished post-demerger, PAT is negative, and EPS is literally zero. Yet, screener still calculates a 93x P/E. That’s like rating an F-grade student as “Harvard material.”
5. Valuation – Fair Value Range Only
Let’s attempt some sanity:
P/E Method: EPS TTM = ₹5.25. Industry PE ~37. Reasonable band: 20x–30x. → Fair Value Range = ₹105 – ₹158.
EV/EBITDA: EV = ₹503 Cr, EBITDA (TTM) ~₹5.4 Cr → EV/EBITDA = 92x. If re-rated to 12–15x, fair EV = ₹65–80 Cr. With same share count, fair value ~₹21–26.
DCF (Simplified): Assume dividend + investment income CAGR of 6% for 10 years, discount rate 12%. PV per share ≈ ₹120–₹140.
Fair Value Range (Blended) = ₹30 – ₹150.
Disclaimer: This range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Demerger Saga: In Oct 2024, NCLT approved the split. Now Indef Manufacturing (IML) runs the
