HP Adhesives Ltd Stock Hits All-Time Low Amid Prolonged Downtrend

Stock Performance Overview

HP Adhesives Ltd’s share price closed at Rs 37.61, just 1.03% above its 52-week low, marking the lowest level ever recorded for the stock. The company’s shares have been on a downward trajectory for the past three consecutive trading sessions, cumulatively losing 6.66% over this period. On 20 Jan 2026, the stock declined by 2.22%, underperforming the Sensex which fell by 0.31% on the same day.

Over longer time frames, the stock’s performance has been notably weak. It has delivered a negative return of 48.53% over the last year, in stark contrast to the Sensex’s positive 7.67% gain. Year-to-date, HP Adhesives has declined 9.23%, while the Sensex has fallen by 2.62%. The underperformance extends to the three-month and one-month periods, with losses of 19.12% and 12.80% respectively, compared to Sensex declines of 1.63% and 2.29%. Over three years, the stock has lost 51.29%, whereas the Sensex has appreciated by 36.89%. The five- and ten-year returns for HP Adhesives stand at zero, highlighting a lack of long-term capital appreciation relative to the Sensex’s 66.67% and 244.89% gains respectively.

Technical indicators also reflect the bearish trend, with the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling persistent downward momentum.

Financial Metrics and Valuation

HP Adhesives’ financial results have shown limited growth in recent years. The company’s operating profit has expanded at an annualised rate of 16.27% over the past five years, a modest pace within the specialty chemicals industry. However, the latest nine-month period ending September 2025 saw a decline in profit after tax (PAT) by 20.69%, with reported PAT at Rs 12.21 crores. Quarterly earnings per share (EPS) have also reached a low of Rs 0.38, indicating pressure on profitability.

Despite these challenges, the company maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure with minimal leverage. Return on equity (ROE) stands at 8.7%, which, while positive, is moderate compared to sector averages. The stock’s price-to-book value ratio is 1.9, suggesting a valuation discount relative to its peers’ historical norms.

Over the past year, the stock’s negative return of 48.53% has coincided with a 21.8% decline in profits, underscoring the correlation between earnings performance and market valuation.

Market Context and Sector Comparison

HP Adhesives operates within the specialty chemicals sector, which has experienced mixed performance amid broader market volatility. The stock’s underperformance relative to the BSE500 index over one year, three months, and three years highlights its challenges in keeping pace with both sectoral and market benchmarks. The company’s Mojo Score currently stands at 40.0, with a Mojo Grade of Sell, downgraded from Hold on 12 Nov 2025. Its market capitalisation grade is rated 4, indicating a smaller market cap relative to larger peers.

Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.

Summary of Key Indicators

To summarise, HP Adhesives Ltd’s stock has reached an unprecedented low, reflecting a combination of subdued earnings growth, declining profitability, and sustained market underperformance. The stock’s technical indicators and valuation metrics point to a challenging environment for the company within the specialty chemicals sector. While the company’s low leverage and moderate ROE provide some stability, the overall trend remains negative as reflected in its recent downgrade to a Sell rating by MarketsMOJO.

Investors and market participants will note the stock’s consistent underperformance against the Sensex and BSE500 indices across multiple time horizons, emphasising the severity of the current situation.

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