HP Adhesives

Why is HP Adhesives Ltd falling/rising?

As of 21-Jun, HP Adhesives Ltd's stock price has declined to 36.51, reflecting a drop of -1.06%. This decline is due to underperformance relative to its sector, decreased investor participation, and concerning long-term financial trends, including a significant loss in the latest quarter.

As of 21-Jun, HP Adhesives Ltd is experiencing a decline in its stock price, currently at 36.51, which reflects a change of -0.39 or -1.06%. This drop can be attributed to several factors highlighted in the source data. <BR><BR>Firstly, the stock has underperformed its sector today by -1.81%, indicating a weaker performance relative to its peers. Additionally, there has been a noticeable decrease in investor participation, with the delivery volume falling by -6.83% compared to the 5-day average. This decline in trading activity suggests reduced interest from investors, which can contribute to downward pressure on the stock price.<BR><BR>Moreover, the stock's performance over the longer term has been concerning. Over the past year, HP Adhesives Ltd has generated a return of -25.58%, significantly underperforming the benchmark, which has only seen a -5.60% decline. The company's operating profit has also shown a negative growth trend, decreasing at an annual rate of -3.59% over the last five years. This lack of growth, coupled with a substantial drop in profits of -58.1%, raises concerns about the company's financial health and future prospects.<BR><BR>Despite being net-debt free and trading at a discount compared to its peers, the overall negative sentiment surrounding the company's recent financial results, including a significant loss reported in the latest quarter, contributes to the stock's downward trajectory. The combination of these factors indicates that HP Adhesives Ltd is facing challenges that are leading to its current decline in stock price.

Which are the latest news on HP Adhesives?

What does HP Adhesives do?

HP Adhesives Ltd is a micro-cap company in the specialty chemicals industry, formed in 1987 and transitioned to a public limited company in 2021. As of March 2026, it reported net sales of 58 Cr and a net profit of -2 Cr, with a market cap of INR 329 Cr.

Overview:<BR>HP Adhesives Ltd operates in the specialty chemicals industry and is categorized as a micro-cap company.<BR><BR>History:<BR>HP Adhesives Limited was originally formed as a Partnership Firm under the name of M/s. H.P. International on 01 January 1987. It was converted into a Private Limited Company on 07 May 2019 and later transitioned to a Public Limited Company, adopting the name HP Adhesives Limited on 01 July 2021. The most recent quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>Net Sales: 58 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: -2 Cr (Quarterly Results - Mar 2026) <BR>Market Cap: INR 329 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: 43.00 <BR>Industry P/E: 42 <BR>Dividend Yield: 1.14% <BR>Debt Equity: -0.14 <BR>Return on Equity: 4.03% <BR>Price to Book: 1.72 <BR><BR>Contact Details:<BR>No Company Details Available <BR>Registrar Address: Not available.

How big is HP Adhesives?

As of 10th June, HP Adhesives Ltd has a market capitalization of 329.00 Cr, with recent net sales of 250.95 Cr and a net profit of 6.97 Cr. The company reported shareholder's funds of 184.28 Cr and total assets of 228.08 Cr as of March 2025.

As of 10th June, HP Adhesives Ltd has a market capitalization of 329.00 Cr, categorizing it as a Micro Cap company.<BR><BR>For the latest four quarters, HP Adhesives reported Net Sales of 250.95 Cr and a Net Profit of 6.97 Cr.<BR><BR>As of March 2025, the company had Shareholder's Funds amounting to 184.28 Cr and Total Assets of 228.08 Cr.

Who are in the management team of HP Adhesives?

The management team of HP Adhesives includes Anjana Motwani (Chairperson/Executive Director), Karan Haresh Motwani (Managing Director), and four Independent Directors: Rajendra Kumar Jain, Surendra Kumar Mehta, Ajeet Anant Walavalkar, along with Company Secretary Jyoti Nikunj Chawda and Executive Director Nidhi Motwani. They are responsible for the company's strategic direction and operations.

The management team of HP Adhesives includes the following individuals:<BR><BR>1. Anjana Motwani - Chairperson / Executive Director<BR>2. Karan Haresh Motwani - Managing Director<BR>3. Rajendra Kumar Jain - Independent Director<BR>4. Surendra Kumar Mehta - Independent Director<BR>5. Ajeet Anant Walavalkar - Independent Director<BR>6. Jyoti Nikunj Chawda - Company Secretary<BR>7. Nidhi Motwani - Executive Director<BR><BR>This team plays a crucial role in guiding the company's strategic direction and operations.

Who are the peers of the HP Adhesives?

HP Adhesives' peers include Kronox Lab, Black Rose Indus, Chembond Chemic., Plastiblends (I), Nikhil Adhesives, Aarti Surfactant, Dynemic Products, Narmada Gelatine, and Indian Toners. Narmada Gelatine shows the highest 1-year return at 19.51%, while HP Adhesives has the lowest at -33.79%.

Peers: The peers of HP Adhesives are Kronox Lab, Black Rose Indus, Chembond Chemic., Plastiblends (I), Nikhil Adhesives, Aarti Surfactant, Dynemic Products, Narmada Gelatine, and Indian Toners.<BR><BR>Quality Snapshot: Excellent management risk is observed at Kronox Lab, Black Rose Indus, Chembond Chemic., and Narmada Gelatine, while Average management risk is found at HP Adhesives, Plastiblends (I), Aarti Surfactant, Dynemic Products, and Indian Toners. Good growth is noted at Narmada Gelatine, while Below Average growth is seen at Kronox Lab, Black Rose Indus, Chembond Chemic., Plastiblends (I), Nikhil Adhesives, HP Adhesives, Aarti Surfactant, Dynemic Products, and Indian Toners. Excellent capital structure is present at Kronox Lab, Black Rose Indus, Chembond Chemic., Plastiblends (I), and Narmada Gelatine, while Good capital structure is found at Nikhil Adhesives, and Average capital structure is observed at HP Adhesives, Aarti Surfactant, Dynemic Products, and Indian Toners.<BR><BR>Return Snapshot: Narmada Gelatine has the highest 1-year return at 19.51%, while HP Adhesives has the lowest at -33.79%. This indicates that HP Adhesives' 1-year return is significantly lower than that of Narmada Gelatine. Additionally, the six-month return is negative for Kronox Lab, Black Rose Indus, Plastiblends (I), Aarti Surfactant, Dynemic Products, and HP Adhesives.

Are HP Adhesives Ltd latest results good or bad?

HP Adhesives Ltd's latest results are concerning, showing a net profit of -₹2.37 crores in Q4 FY26, marking a significant decline in revenue for the fourth consecutive quarter. The company's negative operating margin and low return on equity indicate serious operational challenges and a troubling trajectory.

The latest results for HP Adhesives Ltd are concerning and can be classified as bad. In the fourth quarter of FY26, the company reported a net profit of -₹2.37 crores, which reflects a significant decline of 246.30% quarter-on-quarter and 166.02% year-on-year. This marks the fourth consecutive quarter of revenue decline, with Q4 FY26 revenue at ₹57.82 crores, down 6.70% from the previous quarter and 12.61% year-on-year.<BR><BR>The operating margin has also taken a severe hit, falling to -6.50%, indicating that the company is struggling to manage its costs effectively amidst declining sales. Additionally, the return on equity stands at only 8.71%, which is significantly below the average of its peers at around 19%.<BR><BR>Overall, the operational challenges, negative profit margins, and the company's inability to stabilize revenue suggest a troubling trajectory for HP Adhesives. The market has reacted negatively, with the stock underperforming significantly compared to both the Sensex and its specialty chemicals peers. Given these factors, the results indicate a critical operational crisis for the company.

Should I buy, sell or hold HP Adhesives Ltd?

When is the next results date for HP Adhesives Ltd?

The next results date for HP Adhesives Ltd is 12 May 2026.

The next results date for HP Adhesives Ltd is scheduled for 12 May 2026.

How has been the historical performance of HP Adhesives?

HP Adhesives showed mixed financial performance from March 2024 to March 2025, with net sales increasing to 252.87 Cr but declines in operating profit, profit before tax, and profit after tax. Despite growth in sales, profitability metrics and cash flow from operations decreased.

Answer:<BR>The historical performance of HP Adhesives shows a mixed trend in its financial metrics from March 2024 to March 2025.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, HP Adhesives reported net sales of 252.87 Cr, an increase from 235.91 Cr in the previous year. Total operating income also rose to 252.87 Cr from 235.91 Cr. However, the total expenditure increased significantly to 226.85 Cr from 205.21 Cr, leading to a decline in operating profit (PBDIT) to 30.60 Cr from 34.07 Cr. Consequently, profit before tax decreased to 23.73 Cr from 28.12 Cr, and profit after tax fell to 18.24 Cr from 20.57 Cr. The earnings per share (EPS) also declined to 1.99 from 2.24. On the balance sheet, total liabilities increased to 228.08 Cr from 197.51 Cr, while total assets rose to the same figure, indicating a stable asset-liability position. Cash flow from operating activities decreased to 9.00 Cr from 21.00 Cr, but the company managed a net cash inflow of 2.00 Cr compared to no inflow the previous year. Overall, while HP Adhesives experienced growth in sales and total income, profitability metrics and cash flow from operations showed a downward trend.

Is HP Adhesives overvalued or undervalued?

As of November 7, 2025, HP Adhesives is considered overvalued with a PE ratio of 26.85 and an attractive valuation grade, despite being lower than peers like Solar Industries and Gujarat Fluoroch, while its year-to-date return of -39.94% significantly underperforms the Sensex's gain of 6.50%.

As of 7 November 2025, HP Adhesives has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 26.85, an EV to EBITDA of 17.15, and a ROE of 9.90%. <BR><BR>When compared to peers, HP Adhesives' PE ratio is significantly lower than Solar Industries at 97.45 and Gujarat Fluoroch at 63.86, which are both categorized as very expensive. However, it is higher than Godrej Industries, which has a PE of 35.95 and is also rated as attractive. The company's recent stock performance has been underwhelming, with a year-to-date return of -39.94%, contrasting sharply with the Sensex's gain of 6.50% during the same period, reinforcing the perception of overvaluation.

Who are the top shareholders of the HP Adhesives?

The top shareholders of HP Adhesives include Anjana H. Motwani, who holds 31.24%, and individual investors with 24.07%. Institutional investors, including Quant Mutual Fund, hold a combined 1.34%, while foreign institutional investors have a minimal stake of 0.04%.

The top shareholders of HP Adhesives include the promoters, with Anjana H. Motwani holding the highest individual stake at 31.24%. Additionally, individual investors collectively own 24.07% of the company. On the institutional side, mutual funds hold 1.34% through one scheme, while foreign institutional investors (FIIs) have a minimal stake of 0.04% across three entities. The highest public shareholder is Quant Mutual Fund, specifically through the Quant Small Cap Fund, which holds 1.34%.

What is the technical trend for HP Adhesives?

As of April 15, 2025, HP Adhesives shows a mildly bearish trend overall, influenced by bearish moving averages and Bollinger Bands, despite some mixed signals from the weekly MACD.

As of 15 April 2025, the technical trend for HP Adhesives has changed from bearish to mildly bearish. The weekly MACD indicates a mildly bullish stance, while the monthly MACD is mildly bearish, suggesting mixed signals. The Bollinger Bands are bearish on both weekly and monthly time frames, and moving averages indicate a bearish trend on the daily chart. The KST is bearish on the weekly, and the OBV shows a mildly bearish trend on both weekly and monthly time frames. Overall, the current technical stance is mildly bearish, driven primarily by the bearish moving averages and Bollinger Bands, despite some mildly bullish signals in the weekly MACD and Dow Theory.

Has HP Adhesives declared dividend?

HP Adhesives Ltd has declared a 15% dividend, amounting to ₹0.3 per share, with an ex-date of September 13, 2024. Despite this, the company has experienced significant price declines over various periods, resulting in negative total returns.

HP Adhesives Ltd has declared a 15% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 15%<BR>- Amount per share: 0.3<BR>- Ex-date: 13 Sep 2024<BR><BR>Dividend Yield: 0.59%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -40.54%, with a dividend return of 0%, resulting in a total return of -40.54%.<BR><BR>Over the past year, the price return was -46.57%, the dividend return was 0.31%, leading to a total return of -46.26%.<BR><BR>In the 2-year period, the price return was -41.75%, the dividend return was 0.34%, culminating in a total return of -41.41%.<BR><BR>For the 3-year period, the price return was -32.12%, the dividend return was 0.43%, resulting in a total return of -31.69%.<BR><BR>In the 4-year period, the price return was 0%, the dividend return was 0%, and the total return was 0.0%.<BR><BR>Lastly, over the 5-year period, the price return was 0%, the dividend return was 0%, and the total return was also 0.0%.<BR><BR>Overall, while HP Adhesives has declared a dividend, the total returns over various periods indicate significant declines in price, with only modest contributions from dividends. The company appears to be facing challenges reflected in its negative price returns.