Hindustan Adhesives Experiences Revision in Its Score Amid Strong Q2 FY24-25 Performance

Hindustan Adhesives, a microcap player in the plastic products sector, has recently experienced a revision in its score by MarketsMOJO. This adjustment comes on the heels of the company's impressive financial performance in the second quarter of FY24-25, where it achieved its highest net sales to date, totaling Rs 84.44 crore. The firm also reported a PBDIT of Rs 10.02 crore and a profit before tax of Rs 6.32 crore, showcasing its operational efficiency.
Despite the recent changes in evaluation, Hindustan Adhesives continues to demonstrate a robust long-term growth trajectory, highlighted by an operating profit growth rate of 39.05%. The stock remains in a mildly bullish range, buoyed by a positive KST indicator since early January 2025.

With a return on capital employed (ROCE) of 13.8 and an enterprise value to capital employed ratio of 1.7, the stock is viewed as having an appealing valuation. Over the past year, Hindustan Adhesives has outperformed the broader market, delivering a return of 25.43%, which notably exceeds the BSE 500's return of 13.89%. Additionally, the stock has been added to MarketsMOJO's list, reflecting its ongoing potential in the market landscape.