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

Stock Price Movement and Volatility

On 1 Feb 2026, HP Adhesives Ltd recorded a closing price of Rs.35.01, the lowest in its history and a fresh 52-week low. The stock demonstrated notable volatility throughout the trading session, with an intraday high of Rs.40.44, representing a 15.51% rise from the previous close. Despite this intraday strength, the stock closed down significantly, reflecting underlying market pressures.

HP Adhesives outperformed its sector by 11.93% on the day, registering a 12.00% gain compared to the Sensex’s marginal decline of 0.02%. The stock has gained 2.62% over the last two consecutive trading days, yet remains below its longer-term moving averages, trading higher than the 5-day average but below the 20-day, 50-day, 100-day, and 200-day moving averages. This positioning indicates short-term momentum amid a broader downtrend.

Comparative Performance Analysis

Examining the stock’s performance over various time frames reveals a stark contrast with broader market indices. Over the past year, HP Adhesives has delivered a negative return of -42.47%, while the Sensex has appreciated by 7.16%. The disparity extends to the three-year horizon, where the stock has declined by -42.88%, in contrast to the Sensex’s robust 38.25% gain. Over five and ten years, the stock has shown no appreciable growth, remaining flat at 0.00%, whereas the Sensex has surged by 77.71% and 230.74% respectively.

Shorter-term performance also highlights underperformance. Over the last three months, HP Adhesives declined by -24.06%, compared to a modest -2.54% fall in the Sensex. Year-to-date returns stand at -4.81%, slightly worse than the Sensex’s -3.48%. These figures underscore the stock’s persistent challenges relative to market benchmarks and sector peers.

Financial Metrics and Profitability Trends

HP Adhesives’ financial performance has been subdued, with operating profit growing at an annualised rate of 16.27% over the past five years, a figure considered modest within the Specialty Chemicals industry. The company reported flat results in the September 2025 quarter, with a 9-month Profit After Tax (PAT) of Rs.12.21 crores, reflecting a decline of -20.69% compared to the previous period.

The quarterly Earnings Per Share (EPS) has reached a low of Rs.0.38, signalling pressure on profitability. Over the last year, profits have fallen by -21.8%, aligning with the stock’s negative return trajectory. These figures highlight the challenges faced in sustaining earnings growth amid a competitive and evolving market environment.

Valuation and Capital Structure

Despite the subdued earnings, HP Adhesives maintains an attractive valuation profile. The stock trades at a Price to Book Value ratio of 1.9, which is below the average historical valuations of its peers in the Specialty Chemicals sector. Return on Equity (ROE) stands at 8.7%, indicating moderate efficiency in generating shareholder returns.

The company’s capital structure is notably conservative, with an average Debt to Equity ratio of zero, reflecting an absence of debt financing. This low leverage position may provide some financial flexibility, although it has not translated into improved market performance to date.

Shareholding Pattern

The majority shareholding in HP Adhesives is held by promoters, indicating concentrated ownership. This structure often influences strategic decisions and long-term company direction, though it has not prevented the stock’s decline to record lows.

Mojo Score and Market Sentiment

HP Adhesives currently holds a Mojo Score of 37.0, categorised as a Sell grade by MarketsMOJO. This rating was downgraded from Hold on 12 Nov 2025, reflecting deteriorating fundamentals and market sentiment. The Market Cap Grade is 4, indicating a relatively small market capitalisation within its sector.

The downgrade aligns with the stock’s underperformance relative to the BSE500 index over one year, three years, and three months, reinforcing the challenges faced by the company in delivering shareholder value.

Summary of Market Context

HP Adhesives Ltd’s stock performance and financial metrics paint a picture of a company grappling with sustained headwinds. While the stock has shown short-term gains in recent days, the broader trend remains negative, with significant underperformance against major indices and peers. The all-time low price of Rs.35.01 underscores the severity of the situation, reflecting both market valuation and investor caution.

Despite a conservative capital structure and reasonable valuation multiples, the company’s earnings contraction and flat recent results have weighed heavily on its market standing. The concentrated promoter ownership and sector-specific pressures add further complexity to the stock’s outlook.

Conclusion

HP Adhesives Ltd’s fall to an all-time low is a notable event within the Specialty Chemicals sector, highlighting the challenges faced by the company in maintaining growth and profitability. The stock’s performance metrics, financial results, and market ratings collectively illustrate a difficult environment for the company, with limited positive momentum beyond short-term price fluctuations.

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