Why is Hindustan Adhesives Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.58 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.58 times
2
Below par performance in long term as well as near term
- Along with generating -26.80% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Plastic Products - Industrial)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hind.Adhesive for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hind.Adhesive
-25.63%
-0.70
38.46%
Sensex
4.77%
0.40
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.38%
EBIT Growth (5y)
42.84%
EBIT to Interest (avg)
3.17
Debt to EBITDA (avg)
2.75
Net Debt to Equity (avg)
1.00
Sales to Capital Employed (avg)
1.91
Tax Ratio
28.04%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.28%
ROE (avg)
16.01%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
38
Price to Book Value
1.67
EV to EBIT
10.23
EV to EBITDA
7.07
EV to Capital Employed
1.34
EV to Sales
1.01
PEG Ratio
1.00
Dividend Yield
NA
ROCE (Latest)
13.05%
ROE (Latest)
17.16%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
Technical Movement
10What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 7.24 times
PBDIT(Q)
Highest at Rs 10.36 cr.
PBT LESS OI(Q)
Highest at Rs 6.38 cr.
PAT(Q)
Highest at Rs 5.71 cr.
EPS(Q)
Highest at Rs 11.15
-4What is not working for the Company
INTEREST(9M)
At Rs 5.23 cr has Grown at 23.35%
NET SALES(Q)
At Rs 64.65 cr has Fallen at -9.9% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Hind.Adhesive
Operating Profit to Interest - Quarterly
Highest at 7.24 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 10.36 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 6.38 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 6.38 cr has Grown at 30.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 4.88 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 5.71 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 5.71 cr has Grown at 34.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 4.25 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 11.15
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Hind.Adhesive
Interest - Nine Monthly
At Rs 5.23 cr has Grown at 23.35%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Net Sales - Quarterly
At Rs 64.65 cr has Fallen at -9.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 71.79 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)






