Stock Performance and Market Context
On 19 Jan 2026, HP Adhesives Ltd’s shares closed at Rs.38, hitting both a 52-week and all-time low. The stock underperformed the Specialty Chemicals sector by 4.37% on the day, with a day’s low touching Rs.38, representing a 4.83% decline intraday. The stock opened with a gap down of 3.61%, continuing a two-day losing streak that has resulted in a cumulative return of -6.66% over this period.
HP Adhesives is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum. This contrasts sharply with the Sensex, which declined by only 0.65% on the same day.
Over various time horizons, the stock’s performance has been notably weak. The one-month return stands at -11.92%, while the three-month return is -17.73%, both significantly lagging the Sensex’s respective returns of -2.24% and -1.10%. The year-to-date performance is also negative at -8.30%, compared to the Sensex’s -2.57%.
Longer-term figures reveal a more pronounced underperformance. Over the past year, HP Adhesives has delivered a return of -47.38%, whereas the Sensex has gained 8.37%. The three-year return is down by 50.07%, in stark contrast to the Sensex’s 36.43% gain. Over five and ten years, the stock has remained flat at 0.00%, while the Sensex has appreciated by 68.08% and 239.18% respectively.
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Financial Metrics and Profitability Trends
HP Adhesives’ financial results have reflected subdued growth and contraction in profitability. The company reported flat results in September 2025, with a 9-month Profit After Tax (PAT) of Rs.12.21 crores, which represents a decline of 20.69% compared to the previous period. Quarterly earnings per share (EPS) have also reached a low of Rs.0.38, underscoring the pressure on profitability.
Operating profit growth over the last five years has averaged 16.27% annually, a modest rate that has not translated into sustained share price appreciation. The stock’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell, downgraded from Hold on 12 Nov 2025. This reflects a deteriorated outlook based on comprehensive financial and market data.
Despite the challenges, the company maintains a low average Debt to Equity ratio of zero, indicating minimal leverage. Return on Equity (ROE) is recorded at 8.7%, which, while moderate, is accompanied by an attractive Price to Book Value ratio of 1.9. This valuation is below the average historical valuations of its peers in the Specialty Chemicals sector, suggesting the stock is trading at a discount relative to comparable companies.
Comparative Performance and Shareholding
HP Adhesives has underperformed not only the Sensex but also the BSE500 index over multiple periods including the last three years, one year, and three months. The stock’s returns have been negative across these intervals, with a 47.06% loss over the past year alone. Profitability has also declined by 21.8% during the same timeframe.
The company’s majority shareholding remains with promoters, indicating concentrated ownership. This structure often influences strategic decisions and long-term planning.
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Summary of Current Situation
The stock’s decline to an all-time low of Rs.38 is the culmination of a prolonged period of underperformance relative to both the broader market and its sector. The combination of subdued profit growth, declining earnings, and negative returns over multiple timeframes has contributed to the current valuation and market sentiment.
While the company’s balance sheet shows low leverage and a reasonable ROE, these factors have not been sufficient to offset the broader negative trends in share price and profitability. The downgrade in Mojo Grade to Sell further reflects the challenges faced by HP Adhesives Ltd in maintaining investor confidence and market standing.
Market and Sector Overview
Operating within the Specialty Chemicals sector, HP Adhesives Ltd’s performance contrasts with the sector’s overall trends, where many peers have maintained or improved valuations. The stock’s persistent underperformance highlights the divergence between company-specific factors and sectoral momentum.
Investors and analysts monitoring the Specialty Chemicals space will note the stock’s relative weakness, particularly given its discount valuation metrics compared to peers. The company’s market capitalisation grade of 4 indicates a smaller market cap relative to larger industry players, which may influence liquidity and trading dynamics.
Conclusion
HP Adhesives Ltd’s share price reaching an all-time low is a significant event reflecting ongoing difficulties in financial performance and market valuation. The stock’s sustained negative returns, declining profitability, and recent downgrade in grading underscore the severity of the current situation. The company’s low leverage and moderate ROE provide some balance to the overall picture, but the prevailing market data points to continued challenges in regaining upward momentum.
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