Hindustan Tin Works Ltd Valuation Shifts to Very Attractive Amid Mixed Market Returns

Valuation Metrics Signal Improved Price Attractiveness

Hindustan Tin Works Ltd, a key player in the packaging industry, currently trades at a price of ₹129.00, down 2.57% from the previous close of ₹132.40. The stock’s 52-week trading range spans from ₹106.90 to ₹179.00, indicating significant volatility over the past year. The company’s valuation grade has recently been upgraded from “attractive” to “very attractive” as of 12 Feb 2026, reflecting a more compelling entry point for investors.

The price-to-earnings (P/E) ratio stands at 13.04, which is below the average P/E of several peers in the packaging sector. For instance, Everest Kanto trades at a P/E of 14.17, while Shree Rama Multi-Tech posts a higher P/E of 14.33. Notably, Hindustan Tin Works’ P/E is also more favourable than Kanpur Plastipack’s 12.37 and Shree Tirupati Balajis’ 15.53, underscoring its relative valuation appeal.

In terms of price-to-book value (P/BV), Hindustan Tin Works is trading at a low 0.62, signalling that the stock is priced below its book value. This contrasts with many peers, where P/BV ratios tend to be higher, suggesting that the market currently values Hindustan Tin Works’ net assets conservatively. This discount could be an opportunity for value investors seeking exposure to the packaging sector at a reasonable price.

Enterprise Value Multiples and Profitability Ratios

Examining enterprise value (EV) multiples, Hindustan Tin Works’ EV to EBITDA ratio is 7.63, which is competitive within the sector. For comparison, Everest Kanto’s EV/EBITDA is 8.02, and Shree Rama Multi-Tech’s is significantly higher at 19.31, indicating that Hindustan Tin Works is trading at a more reasonable multiple relative to earnings before interest, taxes, depreciation and amortisation.

However, the company’s return on capital employed (ROCE) and return on equity (ROE) remain modest at 6.10% and 4.72% respectively. These figures suggest that while the valuation is attractive, operational efficiency and profitability could improve to justify a higher rating. Investors should weigh these factors carefully when considering the stock’s risk-reward profile.

Comparative Valuation Within the Packaging Sector

When benchmarked against its peers, Hindustan Tin Works’ valuation stands out as very attractive. The company’s EV to capital employed ratio is 0.72, and EV to sales is 0.52, both indicating a relatively low valuation compared to sector averages. For example, Kanpur Plastipack’s EV to EBITDA is 10.24, and RDB Rasayans trades at 10.75, both higher than Hindustan Tin Works’ 7.63 EV/EBITDA.

Interestingly, some companies such as Hitech Corporation and Shree Jagdamba Polymers also enjoy very attractive valuations, with EV/EBITDA multiples of 6.72 and 7.49 respectively. However, Hitech’s P/E ratio is substantially higher at 55.45, suggesting that Hindustan Tin Works offers a more balanced valuation profile with lower price multiples.

On the other hand, Bluegod Entertainment and Shree Rama Multi-Tech are classified as very expensive, with P/E ratios of 35.52 and 14.33 and EV/EBITDA multiples of 23.37 and 19.31 respectively. This contrast highlights Hindustan Tin Works’ relative undervaluation within the packaging sector, potentially making it a more attractive option for value-focused investors.

Stock Performance Versus Sensex Benchmarks

Despite the improved valuation, Hindustan Tin Works’ recent stock performance has been mixed. Over the past week, the stock declined by 2.35%, while the Sensex gained 0.43%. However, over the last month, the stock rebounded with an 8.72% gain, outperforming the Sensex’s slight decline of 0.24%. Year-to-date, Hindustan Tin Works has delivered a 10.92% return, contrasting with the Sensex’s negative 1.81% return.

Longer-term returns present a more nuanced picture. Over one year, the stock has fallen 21.44%, significantly underperforming the Sensex’s 9.85% gain. Over three years, Hindustan Tin Works has returned 23.21%, lagging behind the Sensex’s 37.89%. Yet, over five and ten years, the stock has delivered impressive cumulative returns of 139.78%, more than doubling the Sensex’s 62.34% and 264.02% respectively. This suggests that while short-term volatility remains a concern, the company has generated substantial wealth for patient investors over the long run.

Mojo Score and Market Sentiment

Hindustan Tin Works currently holds a Mojo Score of 23.0, which corresponds to a “Strong Sell” grade, an upgrade from the previous “Sell” rating as of 12 Feb 2026. This downgrade in sentiment reflects concerns over the company’s operational metrics and recent price weakness, despite the improved valuation parameters. The market cap grade is rated 4, indicating a micro-cap status with limited liquidity and higher risk.

Dividend yield remains modest at 0.62%, which may not be a significant draw for income-focused investors. The PEG ratio is 0.00, signalling either zero or negligible earnings growth expectations, which could explain the cautious market stance despite the attractive valuation.

Investment Considerations and Outlook

For investors evaluating Hindustan Tin Works, the very attractive valuation metrics present a compelling case for entry, especially when compared with more expensive peers in the packaging sector. The low P/E and P/BV ratios suggest the stock is undervalued relative to its book and earnings potential. However, the company’s modest profitability ratios and recent negative price momentum warrant caution.

Long-term investors may find value in the stock’s historical outperformance over five and ten years, but short-term volatility and a “Strong Sell” Mojo Grade highlight the risks involved. A turnaround in operational efficiency and earnings growth would be necessary to justify a re-rating and improved market sentiment.

Overall, Hindustan Tin Works represents a classic value investment opportunity with a risk profile suited to investors willing to tolerate near-term fluctuations in pursuit of longer-term capital appreciation.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →