Hind.Adhesive

Why is Hindustan Adhesives Ltd falling/rising?

As of 11-Jul, Hindustan Adhesives Ltd's stock price is rising to 263.30, but it has underperformed its sector and faced significant declines over the past month and year. The company's financial health is concerning, with a high Debt to EBITDA ratio and substantial drops in net sales and profit, indicating a challenging long-term outlook despite recent short-term gains.

As of 11-Jul, Hindustan Adhesives Ltd's stock price is rising, currently at 263.30, with a change of 1.55 (0.59%) upward. This increase can be attributed to a recent trend where the stock has gained for the last two days, resulting in a total return of 1.66% during this period. However, it is important to note that despite this short-term gain, the stock has underperformed its sector by 1.01% today.<BR><BR>In the broader context, the stock has faced significant challenges over the past month and year, with declines of 12.25% and 19.26%, respectively. The company's financial health is concerning, highlighted by a high Debt to EBITDA ratio of 3.39 times, indicating a low ability to service debt. Additionally, the company reported a fall in net sales of 13.83% and a substantial decline in profit after tax by 43.5% compared to the previous four-quarter average.<BR><BR>While the stock is trading at a discount compared to its peers and has shown some attractive valuation metrics, such as a ROCE of 10.6 and a PEG ratio of 1.2, these factors are overshadowed by the negative performance indicators and the overall underperformance against the market. Thus, while there is a slight rise in the stock price recently, the long-term outlook remains challenging.

Which are the latest news on Hind.Adhesive?

Should I buy, sell or hold Hindustan Adhesives Ltd?

Are Hindustan Adhesives Ltd latest results good or bad?

Hindustan Adhesives Ltd's latest results are concerning, showing a 79.38% decline in net profit and a 13.83% drop in net sales, marking the lowest revenue in seven quarters. The company faces significant operational challenges, with a heavy reliance on non-operating income, leading to a negative outlook.

The latest results for Hindustan Adhesives Ltd are concerning and indicate a significant deterioration in financial performance. In Q4 FY26, the company reported a net profit of ₹0.93 crores, which represents a staggering decline of 79.38% quarter-on-quarter and 71.82% year-on-year. Net sales also fell by 13.83% from the previous quarter to ₹57.64 crores, marking the lowest revenue in seven quarters. <BR><BR>Operating margins contracted sharply to 11.69%, down from 15.47% in the previous quarter, reflecting challenges in maintaining pricing power amid declining sales. Furthermore, a troubling aspect of the results is that 85.28% of the profit before tax came from non-operating income, indicating that the core business is struggling to generate sustainable profits.<BR><BR>Overall, the financial metrics suggest that Hindustan Adhesives is facing significant operational challenges, with weak demand, rising interest costs, and a concerning reliance on non-operating income to support profitability. These factors contribute to a negative outlook for the company, making the latest results appear quite bad.

When is the next results date for Hindustan Adhesives Ltd?

The next results date for Hindustan Adhesives Ltd is June 25, 2026.

The next results date for Hindustan Adhesives Ltd is scheduled for June 25, 2026.

What does Hind.Adhesive do?

Hindustan Adhesives Ltd is a micro-cap specialty adhesive coating company established in 1988, reporting net sales of 67 Cr and a net profit of 5 Cr for the quarter ending December 2025. Key metrics include a P/E ratio of 9.00 and a market cap of INR 158 Cr.

Overview:<BR>Hindustan Adhesives Ltd is a Specialty Adhesive Coating Company operating in the Plastic Products - Industrial industry and categorized as a Micro Cap.<BR><BR>History:<BR>Hindustan Adhesives Limited was established in April 1988. The latest quarterly results reported net sales and net profit for the period ending December 2025.<BR><BR>Financial Snapshot:<BR>Net Sales: 67 Cr (Quarterly Results - Dec 2025) <BR>Net Profit: 5 Cr (Quarterly Results - Dec 2025) <BR>Market Cap: INR 158 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: 9.00 <BR>Industry P/E: 36 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 1.00 <BR>Return on Equity: 17.16% <BR>Price to Book: 1.54 <BR><BR>Contact Details:<BR>Address: B-2/8 Safdarjung Enclave, New Delhi, New Delhi: 110029 <BR>Website: http://www.hindustanadhesives.net

How big is Hind.Adhesive?

As of 10th June, Hindustan Adhesives Ltd has a market capitalization of 158.00 Cr, with recent net sales of 261.70 Cr and a net profit of 17.27 Cr. Shareholder's funds are 91.10 Cr, and total assets are 258.67 Cr.

As of 10th June, Hindustan Adhesives Ltd has a market capitalization of 158.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest 4 quarters, the company reported Net Sales of 261.70 Cr and a Net Profit of 17.27 Cr.<BR><BR>For the latest annual period ending March 2025, Shareholder's Funds amounted to 91.10 Cr, while Total Assets were reported at 258.67 Cr.

Who are in the management team of Hind.Adhesive?

The management team of Hind.Adhesive includes M S Bagla (Managing Director), Suresh Sridhar Ajila and Ashok Kumar Pathak (Whole-time Directors), Urmia Goenka (Executive Director), and several Non-Executive and Independent Directors, including Amit Kumar, Sudeep Pande, Pawan Kumar Gupta, and Ravi Kumar Aggarwal, along with Amit Kumar Jha as Company Secretary & Compliance Officer.

The management team of Hind.Adhesive includes the following members:<BR><BR>1. M S Bagla - Managing Director<BR>2. Suresh Sridhar Ajila - Whole-time Director<BR>3. Urmia Goenka - Executive Director<BR>4. Ashok Kumar Pathak - Whole-time Director<BR>5. Amit Kumar - Non-Executive & Independent Director<BR>6. Sudeep Pande - Non-Executive & Independent Director<BR>7. Pawan Kumar Gupta - Non-Executive & Independent Director<BR>8. Ravi Kumar Aggarwal - Independent Director<BR>9. Amit Kumar Jha - Company Secretary & Compliance Officer<BR><BR>If you need more information about any specific member or their roles, feel free to ask!

Who are the peers of the Hind.Adhesive?

Hind.Adhesive's peers include CDG Petchem, Tainwala Chem., and B. D. Industries, among others. In terms of management risk, Hind.Adhesive is rated average, with a 1-year return of -11.96%, lower than its peers.

Peers: The peers of Hind.Adhesive are CDG Petchem, Tainwala Chem., Candour Techtex, Ecoplast, B. D. Industries, Captain Pipes, Caprihans India, Texmo Pipes, Bright Brothers, and National Plastic.<BR><BR>Quality Snapshot: Excellent management risk is observed at B. D. Industries and National Plastic, while Average management risk is found at CDG Petchem, Hind.Adhesive, and Captain Pipes. Below Average management risk is noted for Tainwala Chem., Candour Techtex, Caprihans India, Texmo Pipes, and Bright Brothers. Growth is rated as Good for Ecoplast and B. D. Industries, Average for Hind.Adhesive and Captain Pipes, and Below Average for CDG Petchem, Tainwala Chem., Candour Techtex, Caprihans India, Texmo Pipes, and Bright Brothers. Capital Structure is rated as Good for Ecoplast and B. D. Industries, Average for Captain Pipes, and Below Average for CDG Petchem, Hind.Adhesive, Tainwala Chem., Candour Techtex, Caprihans India, Texmo Pipes, and Bright Brothers.<BR><BR>Return Snapshot: The peer with the highest 1-year return is CDG Petchem at 353.99%, while the peer with the lowest is Tainwala Chem. at -9.20%. Hind.Adhesive's own 1-year return is -11.96%, which is lower than Tainwala Chem.'s. Additionally, the six-month return is negative for Ecoplast, Captain Pipes, Caprihans India, Texmo Pipes, Bright Brothers, and National Plastic.

How has been the historical performance of Hind.Adhesive?

Hind.Adhesive's historical performance shows declining net sales and operating income from Mar'22 to Mar'25, while operating profit increased and total assets grew significantly. However, profit after tax decreased, and cash flow from investing activities turned negative due to substantial investments.

Answer:<BR>The historical performance of Hind.Adhesive shows a fluctuating trend in key financial metrics over the years.<BR><BR>Breakdown:<BR>Hind.Adhesive's net sales have decreased from 449.08 Cr in Mar'22 to 284.82 Cr in Mar'25, reflecting a downward trend. The total operating income followed a similar pattern, declining from 449.08 Cr in Mar'22 to 284.82 Cr in Mar'25. Raw material costs peaked at 322.86 Cr in Mar'22 but reduced to 160.15 Cr by Mar'25. The operating profit (PBDIT) has shown some volatility, with a notable increase to 38.73 Cr in Mar'25 from 23.61 Cr in Mar'23, while the profit before tax remained relatively stable around 21.46 Cr in Mar'25 compared to 21.85 Cr in Mar'24. Profit after tax also saw a decrease from 16.41 Cr in Mar'24 to 15.39 Cr in Mar'25. The company's total assets grew significantly from 168.05 Cr in Mar'23 to 258.67 Cr in Mar'25, driven by increases in both current and non-current assets. Total liabilities also rose, reaching 258.67 Cr in Mar'25, with long-term borrowings increasing from 17.48 Cr in Mar'24 to 39.77 Cr in Mar'25. Cash flow from operating activities improved to 18.00 Cr in Mar'25, while cash flow from investing activities turned negative at -49.00 Cr, indicating substantial investments. The closing cash and cash equivalents increased to 6.00 Cr in Mar'25 from 2.00 Cr in Mar'24, suggesting improved liquidity.

Who are the top shareholders of the Hind.Adhesive?

The top shareholders of Hind.Adhesive include Madhusudan Bagla with 15.9%, Saphire Hospitality Management Pvt Limited at 4.99%, and individual investors holding 18.68%. There are no pledged promoter holdings, and the company has no mutual funds or foreign institutional investors as shareholders.

The top shareholders of Hind.Adhesive include the promoters, with Madhusudan Bagla holding the highest stake at 15.9%. Additionally, Saphire Hospitality Management Pvt Limited is the highest public shareholder, owning 4.99% of the company. Individual investors collectively hold 18.68% of the shares. Notably, there are no pledged promoter holdings, and the company does not have any mutual funds or foreign institutional investors holding shares.

Is Hind.Adhesive overvalued or undervalued?

As of July 4, 2025, Hind.Adhesive is considered an attractive investment opportunity due to its undervalued status with a PE ratio of 10.90 and strong financial metrics, despite recent underperformance compared to the Sensex.

As of 4 July 2025, Hind.Adhesive's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered undervalued, with a PE ratio of 10.90, an EV to EBITDA ratio of 7.41, and a ROE of 19.00%. In comparison to its peers, Hind.Adhesive's valuation metrics stand out, especially when contrasted with Supreme Industries and Astral, which are deemed very expensive with PE ratios of 56.34 and 76.13, respectively.<BR><BR>Despite recent underperformance relative to the Sensex—with a year-to-date return of -20.20% compared to the Sensex's 6.77%—Hind.Adhesive's financial ratios suggest it remains a compelling investment opportunity within the plastic products industry. The company's solid ROCE of 13.84% further supports its undervalued status, making it an attractive option for investors looking for value in a challenging market environment.

What is the technical trend for Hind.Adhesive?

As of May 15, 2025, Hind.Adhesive's technical trend is mildly bearish, influenced by bearish Bollinger Bands and daily moving averages, despite some mildly bullish signals from the weekly MACD and KST.

As of 15 May 2025, the technical trend for Hind.Adhesive has changed from bearish to mildly bearish. The weekly MACD indicates a mildly bullish stance, while the monthly MACD shows a mildly bearish trend. The Bollinger Bands are bearish on both weekly and monthly time frames, and the daily moving averages are also bearish. The KST reflects a mildly bullish trend on the weekly chart but is mildly bearish on the monthly. The Dow Theory shows a mildly bullish trend on the weekly chart, with no trend on the monthly. Overall, the current technical stance is mildly bearish, driven primarily by the bearish signals from the Bollinger Bands and daily moving averages, despite some mildly bullish indicators on the weekly MACD and KST.

Has Hind.Adhesive declared dividend?

Hindustan Adhesives Ltd declared a 10% dividend, amounting to 1.0000 per share, but currently has a dividend yield of 0%. Total returns have varied significantly, with notable long-term gains despite recent negative price returns.

Hindustan Adhesives Ltd has declared a 10% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 10%<BR>- Amount per share: 1.0000<BR>- Ex-date: Nov-21-2016<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the 6-month period, the price return was -20.74%, the dividend return was 0%, resulting in a total return of -20.74%.<BR><BR>In the 1-year period, the price return was -9.9%, the dividend return was 0%, leading to a total return of -9.9%.<BR><BR>Over the 2-year period, the price return was 81.21%, the dividend return was 0%, which culminated in a total return of 81.21%.<BR><BR>In the 3-year period, the price return was -23.99%, the dividend return was 0%, resulting in a total return of -23.99%.<BR><BR>For the 4-year period, the price return was 81.97%, the dividend return was 0%, leading to a total return of 81.97%.<BR><BR>In the 5-year period, the price return was 409.58%, the dividend return was 0%, culminating in a total return of 409.58%.<BR><BR>Overall, while Hindustan Adhesives Ltd declared a dividend in the past, the current dividend yield is 0%. The total returns have varied significantly over different periods, with notable gains over the longer term despite recent negative price returns.