Price Performance and Market Context
On 12 Jan 2026, HP Adhesives Ltd’s share price fell by 1.57%, underperforming the Sensex which declined by 0.51% on the same day. This drop pushed the stock to ₹39.87, its lowest level ever recorded. The stock has consistently traded below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward pressure.
Over the past week, the stock declined by 5.95%, compared to a 2.68% fall in the Sensex. The one-month performance shows a 7.36% decrease against the Sensex’s 2.49% drop. More notably, the three-month performance reveals a 15.72% loss while the Sensex gained 0.78%. The stock’s one-year return stands at a negative 46.60%, in stark contrast to the Sensex’s positive 7.45% gain. Year-to-date, HP Adhesives has fallen 2.89%, slightly worse than the Sensex’s 2.43% decline.
Longer-term figures highlight the stock’s challenges: over three years, it has lost 46.34% while the Sensex surged 38.67%. Over five and ten years, the stock has shown no appreciable gains, remaining flat at 0.00%, whereas the Sensex has delivered 67.92% and 236.87% returns respectively.
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Financial Metrics and Profitability Trends
HP Adhesives Ltd’s financial performance has reflected subdued growth and contraction in profitability. The company’s operating profit has grown at an annualised rate of 16.27% over the last five years, a modest pace relative to industry peers. However, recent results have been flat, with the September 2025 quarter showing no significant improvement.
Profit after tax (PAT) for the first nine months of the current fiscal year stood at ₹12.21 crores, representing a decline of 20.69% compared to the previous period. Quarterly earnings per share (EPS) have also reached a low of ₹0.38, underscoring the pressure on profitability.
Despite these challenges, the company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure. Return on equity (ROE) is recorded at 8.7%, which, while modest, contributes to a valuation that remains attractive on a price-to-book value basis of 2.0. This valuation is below the historical average of its peers, suggesting the market is pricing in the company’s recent performance difficulties.
Shareholding and Institutional Participation
Institutional investors have reduced their holdings by 1.36% over the previous quarter, now collectively owning a mere 0.02% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
The company’s Mojo Score currently stands at 40.0, with a Mojo Grade of Sell, downgraded from Hold on 12 Nov 2025. The Market Cap Grade is rated 4, indicating a relatively small market capitalisation within its sector.
HP Adhesives Ltd’s performance has consistently lagged behind the BSE500 index over the last three months, one year, and three years, reinforcing the trend of underperformance in both short and long-term horizons.
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Sector and Industry Positioning
Operating within the specialty chemicals sector, HP Adhesives Ltd faces a competitive environment where innovation and scale often dictate market leadership. The company’s current valuation discount relative to peers may reflect market concerns about its ability to sustain growth and profitability in this context.
While the company’s low leverage and reasonable ROE provide some financial stability, the persistent decline in share price and earnings suggests that the market is factoring in ongoing challenges in maintaining competitive positioning and financial performance.
Summary of Key Data Points
To summarise, HP Adhesives Ltd’s stock has reached an all-time low of ₹39.87, with a one-year return of -46.60% and a three-year return of -46.34%. The company’s PAT for the first nine months of the fiscal year has declined by 20.69%, and EPS is at a quarterly low of ₹0.38. Institutional ownership has diminished to 0.02%, and the Mojo Grade was downgraded to Sell in November 2025. Despite a low debt-to-equity ratio and an ROE of 8.7%, the stock’s valuation remains subdued relative to peers.
These figures collectively illustrate the severity of the company’s current market position and the challenges it faces in reversing its downward trajectory.
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