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Last Updated on: 18 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 514428 | NSE: HINDADH

Hindustan Adhesives Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 17, 2024, 10:00 pm

Market Cap 205 Cr.
Current Price 401
High / Low539/244
Stock P/E14.3
Book Value 148
Dividend Yield0.00 %
ROCE20.6 %
ROE24.1 %
Face Value 10.0
PEG Ratio1.38

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Hindustan Adhesives Ltd

Competitors of Hindustan Adhesives Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Adhesives Ltd 205 Cr. 401539/24414.3 1480.00 %20.6 %24.1 % 10.0
G M Polyplast Ltd 228 Cr. 170216/13832.3 24.20.29 %33.8 %24.8 % 10.0
Duropack Ltd 45.5 Cr. 86.3120/65.021.0 35.00.00 %13.8 %10.6 % 10.0
Bansal Roofing Products Ltd 181 Cr. 137164/67.855.1 20.90.00 %17.2 %13.8 % 10.0
Amco India Ltd 47.5 Cr. 116124/52.338.0 86.60.00 %3.29 %0.91 % 10.0
Industry Average1,198.43 Cr209.5840.2764.860.07%15.02%12.49%7.89

All Competitor Stocks of Hindustan Adhesives Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales84.24103.36135.37126.11118.0473.3175.9954.2081.1081.1170.3471.6164.06
Expenses76.4997.83125.13116.41110.9366.9372.8150.7573.7472.8960.7263.9658.98
Operating Profit7.755.5310.249.707.116.383.183.457.368.229.627.655.08
OPM %9.20%5.35%7.56%7.69%6.02%8.70%4.18%6.37%9.08%10.13%13.68%10.68%7.93%
Other Income0.782.011.77-0.241.890.540.380.681.030.820.820.331.12
Interest1.881.871.742.861.851.591.981.381.421.351.181.311.19
Depreciation2.612.722.802.802.882.952.972.182.062.072.122.492.17
Profit before tax4.042.957.473.804.272.38-1.390.574.915.627.144.182.84
Tax %26.49%34.24%31.86%31.32%27.87%22.69%-22.30%-80.70%13.85%31.14%36.27%10.05%25.00%
Net Profit2.971.945.092.613.081.84-1.081.034.233.874.553.762.13
EPS in Rs5.803.799.955.106.023.60-2.112.018.277.568.897.354.16

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales767876697476140153214449321303287
Expenses686967596368129141192416301271257
Operating Profit8891011811122133203331
OPM %10%11%12%14%15%11%8%8%10%7%6%11%11%
Other Income0000114674333
Interest3333335568755
Depreciation224333678111199
Profit before tax23335346141862220
Tax %35%25%38%35%8%26%33%-15%36%31%16%25%
Net Profit2222522791351614
EPS in Rs3.094.673.074.149.604.874.6312.8617.1024.479.5032.0727.96
Dividend Payout %-0%-0%-0%-0%10%-0%-0%-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%0.00%0.00%150.00%-60.00%0.00%250.00%28.57%44.44%-61.54%220.00%
Change in YoY Net Profit Growth (%)0.00%0.00%0.00%150.00%-210.00%60.00%250.00%-221.43%15.87%-105.98%281.54%

Hindustan Adhesives Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:17%
3 Years:12%
TTM:1%
Compounded Profit Growth
10 Years:21%
5 Years:47%
3 Years:23%
TTM:138%
Stock Price CAGR
10 Years:34%
5 Years:37%
3 Years:15%
1 Year:49%
Return on Equity
10 Years:18%
5 Years:20%
3 Years:19%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 1:27 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital555555555555
Reserves81112141922243038505571
Borrowings212422212149547084806660
Other Liabilities121415121320282137664244
Total Liabilities465454535896111126164201168180
Fixed Assets232224222321566276807772
CWIP00001320110000
Investments0002221112315
Other Assets2432302932425452861208893
Total Assets465454535896111126164201168180

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 631087511106252727
Cash from Investing Activity -1-2-6-3-5-31-10-23-12-15-10-15
Cash from Financing Activity -4-0-4-5-326-1128-10-20-10
Net Cash Flow01-00-111-12-0-21

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-13.00-16.00-13.00-11.00-10.00-41.00-43.00-58.00-63.00-47.00-46.00-27.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days556763627074594355382948
Inventory Days657999126120162887568568672
Days Payable5976787279122804155474247
Cash Conversion Cycle616984115110114677768477472
Working Capital Days6174798799107697576415356
ROCE %17%18%15%17%19%10%11%12%17%20%10%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters68.48%68.48%68.48%68.48%68.48%68.48%68.48%68.48%68.48%68.48%68.54%68.55%
Public31.52%31.52%31.52%31.52%31.52%31.52%31.51%31.52%31.51%31.52%31.46%31.46%
No. of Shareholders6,2576,1946,6287,3588,5409,1689,3319,5489,7199,5987,9998,039

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 17Mar 16
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)32.059.509.333.43
Diluted EPS (Rs.)32.059.509.333.43
Cash EPS (Rs.)49.1230.9716.399.96
Book Value[Excl.RevalReserv]/Share (Rs.)147.83116.7347.3038.46
Book Value[Incl.RevalReserv]/Share (Rs.)147.83116.7347.3038.46
Revenue From Operations / Share (Rs.)594.06628.46148.10137.84
PBDIT / Share (Rs.)70.0246.1422.9918.90
PBIT / Share (Rs.)52.9524.6815.9412.37
PBT / Share (Rs.)42.6711.3910.205.64
Net Profit / Share (Rs.)32.059.509.333.43
NP After MI And SOA / Share (Rs.)32.059.509.333.43
PBDIT Margin (%)11.787.3415.5213.71
PBIT Margin (%)8.913.9210.768.97
PBT Margin (%)7.181.816.884.09
Net Profit Margin (%)5.391.516.302.49
NP After MI And SOA Margin (%)5.391.516.302.49
Return on Networth / Equity (%)21.688.1419.899.04
Return on Capital Employeed (%)27.8415.0527.0824.20
Return On Assets (%)8.692.898.183.29
Long Term Debt / Equity (X)0.230.320.140.18
Total Debt / Equity (X)0.901.110.871.07
Asset Turnover Ratio (%)1.710.001.330.00
Current Ratio (X)0.971.001.041.02
Quick Ratio (X)0.560.390.600.55
Inventory Turnover Ratio (X)4.220.003.020.00
Dividend Payout Ratio (NP) (%)0.000.0010.710.00
Dividend Payout Ratio (CP) (%)0.000.006.100.00
Earning Retention Ratio (%)0.000.0089.290.00
Cash Earning Retention Ratio (%)0.000.0093.900.00
Interest Coverage Ratio (X)6.823.474.012.81
Interest Coverage Ratio (Post Tax) (X)4.121.722.631.51
Enterprise Value (Cr.)253.36165.2850.5338.77
EV / Net Operating Revenue (X)0.830.510.660.54
EV / EBITDA (X)7.077.004.294.01
MarketCap / Net Operating Revenue (X)0.610.310.400.27
Retention Ratios (%)0.000.0089.280.00
Price / BV (X)2.471.681.260.99
Price / Net Operating Revenue (X)0.610.310.400.27
EarningsYield0.080.040.150.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hindustan Adhesives Ltd as of October 18, 2024 is: ₹520.25

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 18, 2024, Hindustan Adhesives Ltd is Undervalued by 29.74% compared to the current share price ₹401.00

Intrinsic Value of Hindustan Adhesives Ltd as of October 18, 2024 is: ₹574.01

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 18, 2024, Hindustan Adhesives Ltd is Undervalued by 43.14% compared to the current share price ₹401.00

Last 5 Year EPS CAGR: 10.33%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.58%, which is a positive sign.
  2. The company has shown consistent growth in sales (178.15 cr) and profit (8.38 cr) over the years.
  1. The stock has a high average Working Capital Days of 73.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 79.83, which may not be favorable.
  3. The company has higher borrowings (47.67) compared to reserves (29.50), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hindustan Adhesives Ltd:
    1. Net Profit Margin: 5.39%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.84% (Industry Average ROCE: 15.02%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 21.68% (Industry Average ROE: 12.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.12
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.56
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 14.3 (Industry average Stock P/E: 40.27)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.9
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Hindustan Adhesives Ltd. is a Public Limited Listed company incorporated on 05/04/1988 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1988PLC031191 and registration number is 031191. Currently company belongs to the Industry of Plastics - Sheets/Films. Company’s Total Operating Revenue is Rs. 449.08 Cr. and Equity Capital is Rs. 5.12 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Plastics - Sheets/FilmsB-2/8, Safdarjung Enclave, New Delhi Delhi 110029accounts@hindustanadhesives.com
http://www.bagla-group.com
Management
NamePosition Held
Mr. Amit KumarInd. Non-Executive Director
Mr. Pawan Kumar GuptaInd. Non-Executive Director
Mr. Suresh Sridhar AjilaWhole Time Director
Mr. Sudeep PandeInd. Non-Executive Director
Mr. M S BaglaManaging Director
Mrs. Urmila GoenkaWhole Time Director
Mr. Ashok Kumar PathakWhole Time Director
Mr. Ravi Kumar AggarwalInd. Non-Executive Director

FAQ

What is the latest fair value of Hindustan Adhesives Ltd?

The latest fair value of Hindustan Adhesives Ltd is ₹520.25.

What is the Market Cap of Hindustan Adhesives Ltd?

The Market Cap of Hindustan Adhesives Ltd is 205 Cr..

What is the current Stock Price of Hindustan Adhesives Ltd as on 17 October 2024?

The current stock price of Hindustan Adhesives Ltd as on 17 October 2024 is ₹401.

What is the High / Low of Hindustan Adhesives Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hindustan Adhesives Ltd stocks is 539/244.

What is the Stock P/E of Hindustan Adhesives Ltd?

The Stock P/E of Hindustan Adhesives Ltd is 14.3.

What is the Book Value of Hindustan Adhesives Ltd?

The Book Value of Hindustan Adhesives Ltd is 148.

What is the Dividend Yield of Hindustan Adhesives Ltd?

The Dividend Yield of Hindustan Adhesives Ltd is 0.00 %.

What is the ROCE of Hindustan Adhesives Ltd?

The ROCE of Hindustan Adhesives Ltd is 20.6 %.

What is the ROE of Hindustan Adhesives Ltd?

The ROE of Hindustan Adhesives Ltd is 24.1 %.

What is the Face Value of Hindustan Adhesives Ltd?

The Face Value of Hindustan Adhesives Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindustan Adhesives Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE