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Hester Biosciences Limited (HESTERBIO) Fair Value & Analysis

Healthcare · IN · Market cap ₹18.0B

HB Hester Biosciences Limited HESTERBIO · NSE
Price₹2,418
Fair Value₹1,129
Upside-53.3%
Quality65/100
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Healthy Growth
Solidly profitable · 16.7% net margin
Low debt · generates free cash flow
0.50% dividend yield
Mixed vs. peers (7/14)
Wide moat 72/100
Evidence: High Range ₹626.95 – ₹1,467 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 4 days ago

Share price −1.2% over the past month.

A solid business, but screening 53% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹1,467). The favourable scenario is already priced in.
  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹626.95 to ₹1,467) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹3,194 ₹1,250 Fair Value ₹1,129 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹1,250 – ₹3,194 · fair‑value band ₹626.95 – ₹1,467 · the ₹2,418 price screens above the ₹1,129 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hester Biosciences Limited (HESTERBIO) currently trades at ₹2,418, while our model-based Fair Value estimate is ₹1,129, implying the stock looks roughly 53.3% overvalued today. The Quality Score stands at 65/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Hester Biosciences Limited generated revenue of ₹3.3B at a net margin of 16.7%. Revenue grew 40.3% year over year. It earns a return on equity of 16.6%. Net debt stands at ₹1.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹626.95 (bear case) to ₹1,467 (bull case); at ₹2,418, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 95% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -53%, HESTERBIO screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹539.00 ₹1,048 ₹1,929 80
Residual Income ₹435.47 ₹592.65 ₹1,989 76
Rev-Margin DCF ₹597.02 ₹1,164 ₹1,912 74
All 26 models by family
DCF Models
FCF DCF ₹547.22 ₹1,112 ₹2,123 38
Owner Earnings ₹780.75 ₹1,549 ₹2,923 31
5Y Revenue Exit ₹597.02 ₹1,185 ₹1,999 39
5Y EBITDA Exit ₹783.58 ₹1,577 ₹2,595 41
5Y P/E Exit ₹789.67 ₹1,590 ₹2,527 38
10Y Revenue Exit ₹550.01 ₹1,108 ₹1,996 36
10Y EBITDA Exit ₹700.21 ₹1,399 ₹2,506 37
10Y P/E Exit ₹704.28 ₹1,408 ₹2,447 35
Earnings-Based
Graham-Dodd ₹444.75 ₹2,209 ₹3,047 54
Lynch FV ₹596.10 ₹851.57 ₹1,107 50
PEG = 1.0 ₹596.10 ₹851.57 ₹1,107 46
EPV ₹450.83 ₹543.06 ₹623.75 59
Dividend Discount
Gordon GGM ₹65.04 ₹135.23 ₹214.53 70
DDM Multi-Stage ₹65.04 ₹114.03 ₹141.93 61
Multiples
P/E Multiple ₹1,079 ₹1,439 ₹1,799 63
P/S Multiple ₹833.91 ₹1,112 ₹1,390 58
P/B Multiple ₹833.91 ₹1,112 ₹1,390 55
EV/EBIT ₹913.33 ₹1,252 ₹1,591 53
EV/EBITDA ₹967.12 ₹1,324 ₹1,680 54
EV/Revenue ₹622.53 ₹933.25 ₹1,244 43
Asset-Based
NCAV (Graham) ₹211.73 ₹283.72 ₹423.46 50
Growth DCF
Growth DCF ₹539.00 ₹1,048 ₹1,929 80
Rev-Margin DCF ₹597.02 ₹1,164 ₹1,912 74
Economic Profit
Residual Income ₹435.47 ₹592.65 ₹1,989 76
ROIC Compounder ₹466.64 ₹680.49 ₹912.16 72
Growth Earnings
Growth-Adj P/E ₹937.00 ₹1,339 ₹1,740 68

Widest divergence: DCF Models (₹1,399) versus Dividend Discount (₹114.03). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹3.3B
Revenue growth (YoY) +40.3%
Net margin 16.7%
Return on equity 16.6%
Free cash flow ₹417M FY2026
P/E ratio 37.9
More key figures
Operating margin 29.5%
EPS (TTM) ₹65.30
Dividend yield 0.5%
EPS growth (YoY) +969%
Net debt ₹1.9B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 61 · Market factors (momentum, volatility) 81

Profitability 52
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 86
Price trend over the last 3–12 months (market factor)
52W Momentum 82
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hester Biosciences Limited manufactures and trades in veterinary vaccines and health products in India and internationally. It operates through two segments, Poultry Healthcare and Animal Healthcare.

Full company description

Hester Biosciences Limited manufactures and trades in veterinary vaccines and health products in India and internationally. It operates through two segments, Poultry Healthcare and Animal Healthcare. The company provides poultry vaccines for newcastle disease, infectious bronchitis, infectious bursal, fowl pox, marek's disease, infectious coryza, fowl cholera, inclusion body hepatitis, fowl typhoid, and avian encephalomyelitis. It also offers vaccines for peste des petits ruminants, goat pox, brucella, lumpy skin disease, contagious bovine pleuropneumonia, and contagious caprine pleuropneumonia for cattle, buffalo, sheep, and goats; and diagnostic services. In addition, the company provides animal healthcare products, such as biosecurity solutions, therapeutics, nutritional supplements, and specialised formulations to enhance animal wellness and productivity. Further, it offers various pet care products, including gut health solutions, NSAIDs, joint care formulations, parasiticides, grooming products, and anti-infective formulations; and healthcare products, such as immune boosters, gut health enhancers, farm hygiene, vitamins, minerals, and specialty feed supplements for critical needs comprising disease prevention, growth, and nutritional balance. Additionally, the company provides Silvectant, a hydrogen peroxide and silver nitrate solution for disinfection of poultry sheds; Hestbac, a probiotic supplement to control pathogenic bacteria; Hestflora, a combined probiotic and prebiotic formulation that supports gut health and performance; AmmoStop, a probiotic blend for odour control and respiratory comfort in poultry farms. It also offers INACTIVATED H9N2 vaccine for low pathogenic avian influenza; ICEFT RTU, a ceftiofur formulation for uterine and bacterial infections; and Inomilk Gel, an oral calcium supplement, as well as operates diagnostic labs for poultry. Hester Biosciences Limited was incorporated in 1987 and is headquartered in Mehsana, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Hester Biosciences Limited reported revenue of ₹3.3B in FY2026 versus ₹2.4B in FY2022, a compound +9.1%/yr. Reported net income was ₹556M in FY2026, compounding +9.1%/yr from FY2022.

Growth Quality 89/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹3.3B
Latest YoY
+6.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.2%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.1%
Revenue +9.1%/yr
FY22 ₹2.4B
FY23 ₹2.7B
FY24 ₹3.0B
FY25 ₹3.1B
FY26 ₹3.3B
Net income +9.1%/yr
FY22 ₹393M
FY23 ₹266M
FY24 ₹189M
FY25 ₹275M
FY26 ₹556M
Character of growth · EPS growth decomposed (2015-2026) +7.5 % p.a.
Revenue per share +13.4 pp

of which total revenue +13.0 pp · buybacks/dilution +0.3 pp

EBIT margin −4.1 pp
Tax rate −0.4 pp
Residual (interest, one-offs) −1.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

HESTERBIO screens 53% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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Cite: Fair Value Calculator (2026). "Hester Biosciences Limited Fair Value". https://www.fairvalue-calculator.com/stock/HESTERBIO

Peer Group

Drug Manufacturers - Specialty & Generic · 625 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 65 · Top 25%
Fair Value upside −53% · Below median
Return on equity (TTM) 17% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 29% · Top 25%
Revenue growth 40% · Top 25%
Dividend yield (TTM) 0.5% · Bottom 25%
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 37.9× · Pricier than median
P/B 5.00× · Pricier than 75% of peers
P/S (TTM) 5.39× · Pricier than 75% of peers
P/FCF 0.5× · Cheaper than 75% of peers
EV/EBITDA 23.1× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 7
FUTURE 100 · sector 20
PAST 66 · sector 24
HEALTH 88 · sector 96
DIVIDEND 10 · sector 32

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.76 ¥25.94 -52%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹8,500 ₹1,932 -77%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,915 ₹1,163 -76%
PharmaEssentia Corporation 6446 1,440 TWD 233.93 TWD -84%
Cipla Limited CIPLA ₹1,463 ₹1,001 -32%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,167 ₹703.32 -40%
Lupin Limited LUPIN ₹2,281 ₹2,477 +9%
Mankind Pharma Limited MANKIND ₹2,433 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,200 ₹874.79 -27%

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Frequently asked questions

Is Hester Biosciences Limited (HESTERBIO) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,129 versus a price of ₹2,418, about −53% (overvalued).
What is the fair value of HESTERBIO?
Our model-based fair value for Hester Biosciences Limited is ₹1,129 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹2,418.
What is the quality score of HESTERBIO?
Hester Biosciences Limited has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hester Biosciences Limited (HESTERBIO)?
Hester Biosciences Limited reported trailing-twelve-month revenue of about ₹3.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of HESTERBIO?
The net profit margin of Hester Biosciences Limited is about 16.7%, meaning it keeps roughly 16.7% of revenue as net income. Based on the latest reported figures.
Does Hester Biosciences Limited pay a dividend?
Hester Biosciences Limited currently shows a dividend yield of about 0.50% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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