Key Events This Week
Feb 09: Stock opens strong at Rs.41.51, gaining 3.75%
Feb 10-12: Gradual decline amid mixed volume and market volatility
Feb 13: Quarterly results reveal 62% profit plunge; stock plunges 6.87% to Rs.38.49
Strong Start on Monday, 9 February
HP Adhesives Ltd began the week on a positive note, with its stock price rising by 3.75% to close at Rs.41.51 on 9 February 2026. This gain outpaced the Sensex’s 1.04% increase, reflecting initial optimism among investors. The volume of 8,940 shares traded was relatively robust, signalling active participation. The broader market’s positive momentum likely supported this early strength, although no company-specific news was reported on this day.
Subdued Trading and Minor Declines Midweek
The following two trading sessions saw a gradual erosion of gains. On 10 February, the stock slipped marginally by 0.17% to Rs.41.44, despite the Sensex advancing 0.25%. Volume declined to 6,086 shares, indicating reduced trading interest. The downtrend continued on 11 February, with the stock falling 1.06% to Rs.41.00, while the Sensex inched up 0.13%. The lower volumes of 5,481 shares and the divergence from the Sensex suggested emerging caution among investors ahead of the company’s quarterly results.
Modest Recovery on 12 February Amid Market Weakness
On 12 February, HP Adhesives’ stock rebounded slightly by 0.80% to Rs.41.33, bucking the Sensex’s 0.56% decline. However, this uptick was accompanied by a sharp drop in volume to 1,605 shares, indicating limited conviction behind the move. The market’s overall weakness and anticipation of the upcoming quarterly earnings report likely contributed to the cautious trading environment.
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Sharp Decline Following Quarterly Results on 13 February
The week’s most significant event occurred on 13 February, when HP Adhesives Ltd reported a steep 62% plunge in quarterly profit, intensifying margin pressures. The Profit After Tax (PAT) for the December 2025 quarter fell sharply to ₹1.97 crores, down 51.9% from the average of the previous four quarters. Operating profitability also deteriorated, with PBDIT dropping to ₹3.95 crores and the operating profit to net sales ratio compressing to 6.04%. Earnings Per Share (EPS) declined to a quarterly low of ₹0.18, underscoring the earnings quality deterioration.
In response, the stock plunged 6.87% to close at Rs.38.49 on heavy volume of 6,808 shares, significantly underperforming the Sensex’s 1.40% decline. This sharp sell-off reflected investor concerns over the company’s deteriorating financial trend, which has shifted from flat to negative, as well as the downgrade to a Sell rating by MarketsMOJO. The stock’s 52-week low of Rs.35.01 and 52-week high of Rs.63.90 highlight the volatility and downward bias experienced over the past year.
Daily Price Comparison: HP Adhesives Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.41.51 | +3.75% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.41.44 | -0.17% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.41.00 | -1.06% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.41.33 | +0.80% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.38.49 | -6.87% | 36,532.48 | -1.40% |
Key Takeaways from the Week
Negative Financial Trend and Profitability Pressure: The company’s quarterly results revealed a sharp decline in profitability metrics, with PAT and PBDIT hitting multi-quarter lows. Margin compression to 6.04% signals operational challenges amid a difficult sector environment.
Stock Underperformance: HP Adhesives’ stock fell 7.27% from the week’s open to close at Rs.38.49, significantly underperforming the Sensex’s 6.73% decline over the same period. The sharp drop on 13 February was directly linked to the disappointing earnings announcement.
Mojo Grade and Market Sentiment: The downgrade to a Sell rating and a Mojo Score of 34.0 reflect heightened caution. The financial trend shift from flat to negative has weighed heavily on investor sentiment, contributing to the stock’s downward momentum.
Sector Challenges: Operating in the specialty chemicals sector, HP Adhesives faces headwinds from raw material cost inflation and pricing pressures. The company’s inability to sustain margins above sector averages has exacerbated its financial difficulties.
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Conclusion
The week ending 13 February 2026 was a difficult period for HP Adhesives Ltd, with the stock retreating sharply amid disappointing quarterly results and a deteriorating financial outlook. The 62% plunge in profit and margin compression have raised concerns about the company’s near-term operational resilience. Despite a strong start to the week, investor sentiment turned decisively negative following the earnings release, resulting in a significant sell-off that outpaced the broader market decline.
HP Adhesives’ persistent underperformance relative to the Sensex over multiple time frames highlights ongoing structural challenges within the company and its sector. The downgrade to a Sell rating and the negative financial trend underscore the need for cautious monitoring of future quarters to assess any signs of recovery or further deterioration.
Investors should remain vigilant to the evolving financial metrics and sector dynamics before considering exposure to this stock, given the current headwinds and valuation risks.
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