Hindustan Adhesives Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 12:49 am

Market Cap	216 Cr.
Current Price	421
High / Low	539/300
Stock P/E	13.6
Book Value	163
Dividend Yield	0.00 %
ROCE	20.6 %
ROE	24.1 %
Face Value	10.0
PEG Ratio	1.08

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

Stock P/E Current Price Intrinsic Value

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Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Hindustan Adhesives Ltd	216 Cr.	421	539/300	13.6	163	0.00 %	20.6 %	24.1 %	10.0
G M Polyplast Ltd	210 Cr.	156	216/124	37.3	26.3	0.32 %	33.9 %	24.8 %	10.0
Duropack Ltd	57.9 Cr.	110	122/65.0	22.5	37.8	0.00 %	13.8 %	10.6 %	10.0
Bansal Roofing Products Ltd	109 Cr.	82.3	164/67.8	36.4	22.0	0.00 %	17.2 %	13.8 %	10.0
Amco India Ltd	36.2 Cr.	88.0	124/54.0	32.3	88.7	0.00 %	3.29 %	0.91 %	10.0
Industry Average	1,070.57 Cr	174.94		38.24	67.34	0.08%	15.03%	12.49%	7.44

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	84.24	103.36	135.37	126.11	118.04	73.31	75.99	54.20	81.10	81.11	70.34	71.61	64.06
Expenses	76.49	97.83	125.13	116.41	110.93	66.93	72.81	50.75	73.74	72.89	60.72	63.96	58.98
Operating Profit	7.75	5.53	10.24	9.70	7.11	6.38	3.18	3.45	7.36	8.22	9.62	7.65	5.08
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 Income	0.78	2.01	1.77	-0.24	1.89	0.54	0.38	0.68	1.03	0.82	0.82	0.33	1.12
Interest	1.88	1.87	1.74	2.86	1.85	1.59	1.98	1.38	1.42	1.35	1.18	1.31	1.19
Depreciation	2.61	2.72	2.80	2.80	2.88	2.95	2.97	2.18	2.06	2.07	2.12	2.49	2.17
Profit before tax	4.04	2.95	7.47	3.80	4.27	2.38	-1.39	0.57	4.91	5.62	7.14	4.18	2.84
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 Profit	2.97	1.94	5.09	2.61	3.08	1.84	-1.08	1.03	4.23	3.87	4.55	3.76	2.13
EPS in Rs	5.80	3.79	9.95	5.10	6.02	3.60	-2.11	2.01	8.27	7.56	8.89	7.35	4.16

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 22, 2024, 2:21 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	76	78	76	69	74	76	140	153	214	449	321	303	290
Expenses	68	69	67	59	63	68	129	141	192	416	301	271	258
Operating Profit	8	8	9	10	11	8	11	12	21	33	20	33	32
OPM %	10%	11%	12%	14%	15%	11%	8%	8%	10%	7%	6%	11%	11%
Other Income	0	0	0	0	1	1	4	6	7	4	3	3	3
Interest	3	3	3	3	3	3	5	5	6	8	7	5	5
Depreciation	2	2	4	3	3	3	6	7	8	11	11	9	9
Profit before tax	2	3	3	3	5	3	4	6	14	18	6	22	21
Tax %	35%	25%	38%	35%	8%	26%	33%	-15%	36%	31%	16%	25%
Net Profit	2	2	2	2	5	2	2	7	9	13	5	16	16
EPS in Rs	3.09	4.67	3.07	4.14	9.60	4.87	4.63	12.86	17.10	24.47	9.50	32.07	30.90
Dividend Payout %	0%	0%	0%	0%	10%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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%

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:	96%

Stock Price CAGR
10 Years:	32%
5 Years:	41%
3 Years:	18%
1 Year:	33%

Return on Equity
10 Years:	18%
5 Years:	20%
3 Years:	19%
Last Year:	24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 2:32 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	5	5	5	5	5	5	5	5	5	5	5	5	5
Reserves	8	11	12	14	19	22	24	30	38	50	55	71	78
Borrowings	21	24	22	21	21	49	54	70	84	80	66	60	71
Other Liabilities	12	14	15	12	13	20	28	21	37	66	42	44	49
Total Liabilities	46	54	54	53	58	96	111	126	164	201	168	180	204
Fixed Assets	23	22	24	22	23	21	56	62	76	80	77	72	72
CWIP	0	0	0	0	1	32	0	11	0	0	0	0	4
Investments	0	0	0	2	2	2	1	1	1	2	3	15	17
Other Assets	24	32	30	29	32	42	54	52	86	120	88	93	111
Total Assets	46	54	54	53	58	96	111	126	164	201	168	180	204

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	6	3	10	8	7	5	11	10	6	25	27	27
Cash from Investing Activity +	-1	-2	-6	-3	-5	-31	-10	-23	-12	-15	-10	-15
Cash from Financing Activity +	-4	-0	-4	-5	-3	26	-1	12	8	-10	-20	-10
Net Cash Flow	0	1	-0	0	-1	1	1	-1	2	-0	-2	1

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	55	67	63	62	70	74	59	43	55	38	29	48
Inventory Days	65	79	99	126	120	162	88	75	68	56	86	72
Days Payable	59	76	78	72	79	122	80	41	55	47	42	47
Cash Conversion Cycle	61	69	84	115	110	114	67	77	68	47	74	72
Working Capital Days	61	74	79	87	99	107	69	75	76	41	53	56
ROCE %	17%	18%	15%	17%	19%	10%	11%	12%	17%	20%	10%	21%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	68.48%	68.48%	68.48%	68.48%	68.48%	68.48%	68.48%	68.48%	68.48%	68.54%	68.55%	68.55%
Public	31.52%	31.52%	31.52%	31.52%	31.52%	31.51%	31.52%	31.51%	31.52%	31.46%	31.46%	31.46%
No. of Shareholders	6,194	6,628	7,358	8,540	9,168	9,331	9,548	9,719	9,598	7,999	8,039	8,079

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 17	Mar 16
FaceValue	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	32.07	9.50	9.33	3.43
Diluted EPS (Rs.)	32.07	9.50	9.33	3.43
Cash EPS (Rs.)	49.14	30.97	16.39	9.96
Book Value[Excl.RevalReserv]/Share (Rs.)	147.93	116.73	47.30	38.46
Book Value[Incl.RevalReserv]/Share (Rs.)	147.93	116.73	47.30	38.46
Revenue From Operations / Share (Rs.)	594.50	628.46	148.10	137.84
PBDIT / Share (Rs.)	70.07	46.14	22.99	18.90
PBIT / Share (Rs.)	53.00	24.68	15.94	12.37
PBT / Share (Rs.)	42.71	11.39	10.20	5.64
Net Profit / Share (Rs.)	32.07	9.50	9.33	3.43
NP After MI And SOA / Share (Rs.)	32.07	9.50	9.33	3.43
PBDIT Margin (%)	11.78	7.34	15.52	13.71
PBIT Margin (%)	8.91	3.92	10.76	8.97
PBT Margin (%)	7.18	1.81	6.88	4.09
Net Profit Margin (%)	5.39	1.51	6.30	2.49
NP After MI And SOA Margin (%)	5.39	1.51	6.30	2.49
Return on Networth / Equity (%)	21.67	8.14	19.89	9.04
Return on Capital Employeed (%)	27.84	15.05	27.08	24.20
Return On Assets (%)	8.69	2.89	8.18	3.29
Long Term Debt / Equity (X)	0.23	0.32	0.14	0.18
Total Debt / Equity (X)	0.90	1.11	0.87	1.07
Asset Turnover Ratio (%)	1.71	0.00	1.33	0.00
Current Ratio (X)	0.97	1.00	1.04	1.02
Quick Ratio (X)	0.56	0.39	0.60	0.55
Inventory Turnover Ratio (X)	4.18	0.00	3.02	0.00
Dividend Payout Ratio (NP) (%)	0.00	0.00	10.71	0.00
Dividend Payout Ratio (CP) (%)	0.00	0.00	6.10	0.00
Earning Retention Ratio (%)	0.00	0.00	89.29	0.00
Cash Earning Retention Ratio (%)	0.00	0.00	93.90	0.00
Interest Coverage Ratio (X)	6.81	3.47	4.01	2.81
Interest Coverage Ratio (Post Tax) (X)	4.12	1.72	2.63	1.51
Enterprise Value (Cr.)	253.23	165.28	50.53	38.77
EV / Net Operating Revenue (X)	0.83	0.51	0.66	0.54
EV / EBITDA (X)	7.06	7.00	4.29	4.01
MarketCap / Net Operating Revenue (X)	0.61	0.31	0.40	0.27
Retention Ratios (%)	0.00	0.00	89.28	0.00
Price / BV (X)	2.47	1.68	1.26	0.99
Price / Net Operating Revenue (X)	0.61	0.31	0.40	0.27
EarningsYield	0.08	0.04	0.15	0.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 544.93

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 December 22, 2024, is Undervalued by 29.44% compared to the current share price 421.00

Intrinsic Value of as of December 22, 2024 is: 613.39

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 December 22, 2024, is Undervalued by 45.70% compared to the current share price 421.00

Last 5 Year EPS CAGR: 12.56%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 15.58%, which is a positive sign. The company has shown consistent growth in sales (178.38 cr) and profit (8.46 cr) over the years.	The stock has a high average Working Capital Days of 73.08, which may not be favorable. The stock has a high average Cash Conversion Cycle of 79.83, which may not be favorable. The company has higher borrowings (49.46) compared to reserves (33.23), which may suggest financial risk.

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 :
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: 15.03%)
  - 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%: 21.67% (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: 13.6 (Industry average Stock P/E: 38.24)
  - 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.

INDUSTRY	ADDRESS	CONTACT
Plastics - Sheets/Films	B-2/8, Safdarjung Enclave, New Delhi Delhi 110029	accounts@hindustanadhesives.com http://www.bagla-group.com

Management
Name	Position Held
Mr. M S Bagla	Managing Director
Mrs. Urmila Goenka	Whole Time Director
Mr. Ashok Kumar Pathak	Whole Time Director
Mr. Suresh Sridhar Ajila	Whole Time Director
Mr. Sudeep Pande	Ind. Non-Executive Director
Mr. Amit Kumar	Ind. Non-Executive Director
Mr. Pawan Kumar Gupta	Ind. Non-Executive Director
Mr. Ravi Kumar Aggarwal	Ind. Non-Executive Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹544.93, which is 29.44% higher than the current market price of ₹421.00. The stock has a market capitalization of 216 Cr. and recorded a high/low of 539/300 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹78 Cr and total liabilities of ₹204 Cr.

What is the Market Cap of ?

The Market Cap of is 216 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 421.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 539/300.

What is the Stock P/E of ?

The Stock P/E of is 13.6.

What is the Book Value of ?

The Book Value of is 163.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is 20.6 %.

What is the ROE of ?

The ROE of is 24.1 %.

What is the Face Value of ?

The Face Value of is 10.0.