Hindustan Composites Ltd Falls to 52-Week Low of Rs.400

Recent Price Movement and Market Context

On 2 Feb 2026, Hindustan Composites Ltd recorded its lowest price in the past year at Rs.400, underperforming its sector by 0.43% despite a broader market recovery. The Sensex, after a negative start, rebounded sharply by 485.47 points to close at 81,041.15, a gain of 0.39%. While the benchmark index remains below its 50-day moving average, the 50DMA itself is positioned above the 200DMA, signalling mixed technical conditions in the broader market. Mega-cap stocks led the rally, contrasting with the subdued performance of mid and small caps such as Hindustan Composites.

The stock’s current price is substantially below its 52-week high of Rs.539.95, representing a decline of approximately 25.9% from that peak. Over the last year, Hindustan Composites has delivered a negative return of 5.35%, lagging behind the Sensex’s positive 4.54% gain over the same period. This underperformance extends beyond the recent year, with the stock trailing the BSE500 index across one-year, three-year, and three-month timeframes.

Financial Performance and Profitability Metrics

The company’s quarterly financial results released in September 2025 revealed a subdued earnings profile. Profit After Tax (PAT) for the quarter stood at Rs.5.28 crores, reflecting a sharp decline of 49.4% compared to the average of the previous four quarters. Operating profit before depreciation, interest and taxes (PBDIT) was recorded at Rs.10.53 crores, the lowest in recent quarters. The operating profit margin, calculated as operating profit to net sales, also contracted to 11.89%, marking a nadir in the company’s recent profitability metrics.

Despite these challenges, Hindustan Composites maintains a conservative capital structure with an average Debt to Equity ratio of zero, indicating an absence of financial leverage. This low gearing reduces financial risk but has not translated into improved market sentiment or price performance.

Valuation and Market Perception

Hindustan Composites currently holds a Mojo Score of 28.0 and a Mojo Grade of Strong Sell, an upgrade from its previous Sell rating on 21 Jan 2026. The company’s market capitalisation grade stands at 4, reflecting its mid-tier size within the Auto Components & Equipments sector. Domestic mutual funds hold no stake in the company, which may indicate limited institutional conviction or a cautious stance given the stock’s recent performance and earnings profile.

From a valuation standpoint, the stock trades at a Price to Book Value of 0.5, suggesting an attractive valuation relative to its peers’ historical averages. The Return on Equity (ROE) is modest at 3.3%, while operating profit has grown at an annualised rate of 30.08% over the long term. Over the past year, profits have increased by 16.6%, even as the stock price declined by 5.35%, resulting in a PEG ratio of 1. This indicates that earnings growth has not been fully reflected in the share price.

Technical Indicators and Moving Averages

Technically, Hindustan Composites is trading below all key moving averages: 5-day, 20-day, 50-day, 100-day, and 200-day. This broad-based weakness across short, medium, and long-term averages underscores the prevailing bearish sentiment. The stock’s three-day consecutive decline, with a cumulative loss of 1.51%, further highlights the ongoing pressure on the price.

Sector and Industry Context

Hindustan Composites operates within the Auto Components & Equipments sector, which has witnessed mixed performance amid fluctuating demand and supply chain dynamics. While the broader market, led by mega-cap stocks, has shown resilience, smaller and mid-cap companies like Hindustan Composites have faced headwinds. The stock’s underperformance relative to the Sensex and BSE500 indices over multiple time horizons reflects sector-specific pressures as well as company-specific factors.

Summary of Key Metrics

To summarise, the stock’s key metrics as of early February 2026 are:

• New 52-week low price: Rs.400
• 52-week high price: Rs.539.95
• One-year return: -5.35%
• Sensex one-year return: +4.54%
• Quarterly PAT: Rs.5.28 crores (down 49.4%)
• Quarterly PBDIT: Rs.10.53 crores (lowest recent level)
• Operating profit margin (quarterly): 11.89%
• Debt to Equity ratio: 0 (average)
• Operating profit growth (annualised): 30.08%
• ROE: 3.3%
• Price to Book Value: 0.5
• PEG ratio: 1
• Mojo Score: 28.0 (Strong Sell)

These figures illustrate a company with modest profitability and valuation metrics, but one that has experienced recent earnings contraction and price weakness.

Conclusion

Hindustan Composites Ltd’s fall to a 52-week low of Rs.400 reflects a combination of subdued quarterly earnings, underwhelming price performance relative to benchmarks, and technical weakness across moving averages. While the company maintains a low debt profile and has demonstrated long-term operating profit growth, recent quarterly results and market sentiment have weighed on the stock. The absence of domestic mutual fund holdings further highlights the cautious stance among institutional investors. The stock’s current valuation metrics suggest it is trading at a discount relative to peers, though this has not translated into price stability in the near term.

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