🪞 At a Glance
HVAX Technologies Ltd, an SME-listed cleanroom infrastructure specialist, serves pharma & healthcare clients with turnkey EPC solutions. The stock has 2x’ed in the last year, riding on a 5-year PAT CAGR of 42% and FY25 margins of 14.4%. But rising receivables (199 debtor days) and negative cash flows might just fog up this “clean” story.
1. 🎣 Hook – “Engineering Clean Rooms, But Can’t Clean the Balance Sheet?”
You know a company is niche when your uncle from pharma R&D says, “Haan, HVAX ka modular cleanroom use hota hai humare plant mein.” HVAX isn’t building bridges or airports — it’s building germ-proof dreams.
And investors are loving it.
The stock has jumped 100%+ in 1 year, riding the capex wave in pharma & healthcare. But behind the sanitized sales deck lies a sweaty working capital struggle and invisible cash flow. Welcome to the world of cleanrooms and messy ledgers.
2. 🏭 WTF Do They Even Do?
HVAX Technologies provides end-to-end cleanroom EPC services — for pharma, biotech, hospitals, labs, and even electronics.
📦 Product Portfolio (sourced from third parties):
- Cleanroom walls, doors, ceilings
- Air handling units, pass boxes, air showers
- LT/HT panels, GI ducts, chillers, BMS equipment
- Utility distribution infra
💼 Services:
- Turnkey project execution (design → procurement → installation → post-handover)
- Regulatory-compliant design (GMP, ISO14644)
Clients = Mainly pharma + healthcare + some diversification to electronics and food
3. 💰 Financials – Profit, Margins, Growth, ROE
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 61 | 68 | 96 | 106 | 131 |
| EBITDA Margin | 9% | 10% | 9% | 13% | 14.4% |
| Net Profit (₹ Cr) | 4 | 4 | 5 | 9 | 11 |
| ROE (%) | 28% | 27% | 22% | 21.5% | |
| EPS (₹) | 60.3 | 67.7 | 84.3 | 137.8 | 39.8 |
📈 5-Year CAGR:
- Sales = 24%
- PAT = 42%
🧠 Translation: This company is executing well on paper.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
CMP: ₹960
Market Cap: ₹267 Cr
P/E (TTM): ~24.2
Book Value: ₹259 → P/B = 3.7x
📉 Peer Multiples:
- IRCON: 26.5x
- KEC Intl: 42.9x
- Kalpataru: 38x
- L&T: 33x
💥 Verdict: At 24x, HVAX is not cheap for an SME, but fair if you believe the 35–50% growth guidance. However, large infra players with better working capital metrics trade in a similar range.
5. 🔥 What’s Cooking – Triggers & Buzz
📢 Key Announcements:
- FY25 Guidance: 35–50% revenue growth
- Sectoral Diversification: Beyond pharma into electronics and food
- New Clients incoming in biotech and hospitals
- Investor buzz from SME forums + retail crowd after price doubled in 1 year
🤔 But no dividends yet — all cash getting sucked into working capital?
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY24 | FY25 |
|---|---|---|
| Borrowings | ₹24 Cr | ₹28 Cr |
| Net Worth | ₹31 Cr | ₹72 Cr |
| D/E Ratio | 0.77x | 0.39x |
Debt is manageable. Equity base expanded after IPO. But liabilities have jumped alongside receivables.
7. 💸 Cash Flow – Sab Number Game Hai
🧮 Cash Flow from Ops:
- FY24: –₹12 Cr
- FY25: –₹22 Cr
💀 That’s 2 consecutive years of negative operating cash flow despite profits.
Why? Because:
- Receivables shot up: 199 debtor days
- Working capital days: 218
This is the real villain.
8. 📉 Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROCE | 22.5% |
| ROE | 21.5% |
| Cash Conversion Cycle | 222 days |
| Inventory Days | 95 |
| Debtor Days | 199 |
| Working Capital Days | 218 |
💔 ROCE & ROE = good
💩 CCC = horrible
One hand makes money, the other hoards it in receivables.
9. 📊 P&L Breakdown – Show Me the Money
FY25 (₹ Cr):
- Sales: ₹131
- EBITDA: ₹19
- EBITDA Margin: 14.4%
- PAT: ₹11
Margins are improving, but topline isn’t exactly exploding. For 35%+ growth, they’ll need bigger contracts and quicker collections.
10. 🥊 Peer Comparison – Who Else is in the Game?
| Company | P/E | ROCE | OPM | D/E | Sales (Cr) |
|---|---|---|---|---|---|
| HVAX | 24.2 | 22.5% | 14% | 0.39 | ₹131 |
| NBCC | 54.6 | 33.5% | 5.2% | Nil | ₹12,038 |
| IRCON | 26.5 | 12.1% | 7.9% | Nil | ₹10,760 |
| KEC Intl | 42.9 | 16% | 6.8% | 1.2 | ₹21,846 |
🧠 Conclusion: HVAX has better margins, lower debt, but far smaller scale than listed peers.
11. 🤹 Misc – Shareholding, Promoters, Float
- Promoter Holding: 66.65% (Stable)
- FIIs: 9.29%
- DIIs: 0.70%
- Retail/Public: 23.36%
📉 Shareholders count: Shrinking (535 → 508)
Not many institutions yet, but stable promoter control and no pledging is a plus.
12. 🎯 Fair Value Range – Let’s Play Analyst
Let’s say PAT grows 30% CAGR over next 2 years (aggressive but guided).
- FY25 PAT: ₹11 Cr
- FY27E PAT: ₹18.5 Cr (est.)
- Fair P/E Range: 20–25x
- FV Range: ₹370 Cr to ₹462 Cr market cap
🧮 FV per Share:
→ At 3.00 Cr shares → ₹1230 – ₹1540
🔍 CMP = ₹960 → 20–60% upside room if execution is clean
But with negative cash flows and bloated receivables, even 20x P/E may prove rich if growth stalls.
🧠 EduInvesting Verdict™
HVAX is like a perfectly sterilized lab — efficient, niche, and in demand. But behind the scenes, the company is gasping for working capital oxygen.
- 👷 Business model = solid, especially in pharma EPC
- 💸 Margins = healthy
- 💩 Cash flow = ugly
- 🧾 Valuation = fair-ish
If they clean up collections, this stock can stay contagious — in a good way. But if not? Well, even cleanrooms can get contaminated.
✍️ Written by Prashant | 📅 July 1, 2025
Tags: HVAX Technologies, SME Stocks India, Pharma EPC Companies, Cleanroom Infrastructure India, HVAX Financial Analysis, EduInvesting SME Deep Dive, FY25 Results HVAX, Engineering Capex India, Working Capital SME Stocks, NSE SME Listings 2025
