Stock Price Movement and Market Context
On 21 Nov 2025, Hindustan Tin Works recorded its lowest price in the past year at Rs.115.05. This level represents a substantial drop from its 52-week high of Rs.224.70, reflecting a decline of nearly 49%. Despite this, the stock outperformed its sector by 1.41% on the day, showing a modest gain after two consecutive days of falls. However, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure over multiple timeframes.
The broader market environment presents a contrasting picture. The Sensex opened lower at 85,347.40, down 285.28 points or 0.33%, but has since recovered slightly to trade at 85,455.89, a decline of 0.21% on the day. The index is trading near its 52-week high of 85,801.70, just 0.4% away, supported by bullish moving averages with the 50-day DMA positioned above the 200-day DMA. This divergence between Hindustan Tin Works and the benchmark index underscores the stock’s relative underperformance within the packaging sector and the broader market.
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Financial Performance Over the Past Year
Hindustan Tin Works has experienced a return of -34.64% over the last 12 months, a stark contrast to the Sensex’s positive return of 10.69% during the same period. This negative return is accompanied by a decline in profits, with net profit after tax (PAT) falling by 22% over the year. The quarterly PAT stood at Rs.1.73 crore, reflecting a year-on-year reduction of 58.1%, signalling pressure on the company’s earnings capacity.
Operating profit growth has been modest over the last five years, with a compound annual growth rate of 6.39%, while net sales have grown at an annual rate of 8.85%. These figures suggest subdued expansion in revenue and profitability, which may have contributed to the stock’s diminished appeal in the market.
Capital Efficiency and Valuation Metrics
The company’s return on capital employed (ROCE) for the half year is reported at 7.35%, one of the lowest levels observed in recent periods. The quarterly operating profit to interest ratio is at 2.41 times, indicating limited coverage of interest expenses by operating earnings. Despite these figures, the stock is trading at an enterprise value to capital employed ratio of 0.7, which is comparatively lower than the average historical valuations of its peers in the packaging sector. This suggests that the market is pricing the stock at a discount relative to its capital base.
Hindustan Tin Works’ valuation metrics reflect a cautious market stance, likely influenced by its financial performance and subdued growth prospects. The company’s capital structure and profitability ratios point to challenges in generating returns that meet investor expectations within the packaging industry.
Shareholding Pattern and Sector Position
The majority of Hindustan Tin Works’ shares are held by non-institutional investors, which may affect liquidity and trading dynamics. Operating within the packaging sector, the company faces competition from peers that have demonstrated stronger financial metrics and market performance. The sector itself has shown resilience, but Hindustan Tin Works’ stock has not mirrored this trend, as evidenced by its relative underperformance against the BSE500 index over the last three years, one year, and three months.
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Summary of Key Concerns
The stock’s fall to Rs.115.05 highlights several concerns. The limited growth in net sales and operating profit over the past five years, combined with a low ROCE and a reduced PAT, point to challenges in sustaining profitability and efficient capital utilisation. The operating profit to interest coverage ratio at 2.41 times is relatively low, indicating tighter margins for servicing debt obligations.
Additionally, the stock’s position below all major moving averages suggests persistent downward momentum. The underperformance relative to the Sensex and BSE500 indices further emphasises the stock’s struggles within its sector and the broader market.
Market and Sector Outlook
While the Sensex remains near its 52-week high and trades above key moving averages, Hindustan Tin Works has not participated in this broader market strength. The packaging sector, in which the company operates, continues to evolve with varying degrees of success among its constituents. Hindustan Tin Works’ current valuation discount relative to peers may reflect market caution given its recent financial trends.
Investors and market participants will likely continue to monitor the stock’s price action and financial disclosures closely, given its recent low and the broader market context.
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