Intraday Price Movement and Volatility
On the day, Hindustan Adhesives Ltd exhibited notable volatility with an intraday price range spanning from Rs.278.05 to Rs.318.75, representing a 9.22% high and a 4.73% low relative to the previous close. The weighted average price volatility stood at 6.82%, underscoring the stock’s fluctuating investor sentiment during the session. The stock outperformed its sector by 4.03% despite closing at the 52-week low, indicating mixed trading dynamics.
Moving averages reveal a nuanced technical picture. The stock price remains above its 5-day moving average but continues to trade below its 20-day, 50-day, 100-day, and 200-day moving averages. This suggests short-term support exists, yet longer-term momentum remains subdued.
Market Context and Comparative Performance
The broader market environment saw the Sensex open 119.19 points higher and trade at 82,476.22, a 0.25% gain on the day. The Sensex remains 4.47% below its 52-week high of 86,159.02. Mega-cap stocks led the market rally, while Hindustan Adhesives Ltd, a micro-cap stock in the Plastic Products - Industrial sector, continued to face headwinds.
Over the past year, Hindustan Adhesives Ltd’s stock has underperformed significantly, delivering a negative return of -22.84%, compared to the Sensex’s positive 7.47% gain and the BSE500’s 8.04% return. The stock’s 52-week high was Rs.409.95, highlighting the extent of the recent decline.
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Financial Metrics and Credit Profile
Hindustan Adhesives Ltd’s credit metrics remain a concern, with a Debt to EBITDA ratio of 2.58 times, indicating a relatively high leverage level that constrains the company’s ability to service its debt efficiently. This financial leverage is a key factor contributing to the stock’s subdued market performance and the current sell rating.
The company’s Mojo Score stands at 43.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell on 17 Nov 2025. The Market Cap Grade is 4, reflecting its micro-cap status within the Plastic Products - Industrial sector.
Profitability and Operating Performance
Despite the stock’s price weakness, Hindustan Adhesives Ltd has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 42.84%. The company reported positive quarterly results in September 2025 after two consecutive quarters of negative performance. Key quarterly metrics include an operating profit to interest ratio of 7.24 times, PBDIT of Rs.10.36 crore, and PBT less other income of Rs.6.38 crore, all representing the highest levels recorded recently.
The company’s return on capital employed (ROCE) is 13.1%, supported by an attractive enterprise value to capital employed ratio of 1.2. These figures suggest operational efficiency and valuation metrics that are favourable relative to peers, despite the stock trading at a discount to historical averages.
Over the past year, while the stock price declined by 22.84%, profits rose by 9.7%, resulting in a PEG ratio of 0.9. This indicates that earnings growth has outpaced the stock price decline, though this has yet to translate into price appreciation.
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Shareholding and Sector Position
The majority shareholding in Hindustan Adhesives Ltd is held by promoters, which typically provides stability in ownership structure. The company operates within the Plastic Products - Industrial sector, which has experienced mixed performance amid broader market fluctuations.
Summary of Key Price and Market Data
On 1 Feb 2026, Hindustan Adhesives Ltd’s stock closed at Rs.278.05, its lowest level in 52 weeks. The stock’s day change was 6.54%, reflecting a volatile session. The Sensex, by comparison, gained 0.25% and remains below its 50-day moving average, though the 50DMA is above the 200DMA, signalling a cautiously positive medium-term trend for the broader market.
While the stock’s short-term technical indicators show some support above the 5-day moving average, the longer-term moving averages remain above the current price, indicating that the stock is still in a downward trend relative to its historical price levels.
Overall, Hindustan Adhesives Ltd’s stock performance reflects a combination of financial leverage concerns, sector pressures, and market volatility, despite underlying improvements in profitability and operational metrics.
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