HP Adhesives Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: August 1, 2025, 5:54 pm

Market Cap	456 Cr.
Current Price	49.7
High / Low	104/42.6
Stock P/E	25.6
Book Value	20.0
Dividend Yield	0.60 %
ROCE	13.9 %
ROE	10.1 %
Face Value	2.00
PEG Ratio	5.58

Quick Insight

HP Adhesives Ltd, operating in the specialty chemicals sector, currently trades at ₹49.0, reflecting a market capitalization of ₹450 crore. With a P/E ratio of 25.2, the stock appears moderately valued considering its ROE of 10.1% and ROCE of 13.9%, suggesting efficient use of equity and capital. The company's operating profit margin stands at 8.46%, while its net profit is ₹18 crore. Notably, promoter ownership is robust at 71.35%, enhancing stakeholder confidence. However, a high cash conversion cycle of 137 days indicates potential liquidity challenges. Overall, while HP Adhesives shows promise, investors should weigh its valuation against operational efficiency before deciding on entry.

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for HP Adhesives Ltd

Competitors of HP Adhesives Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
HP Adhesives Ltd	456 Cr.	49.7	104/42.6	25.6	20.0	0.60 %	13.9 %	10.1 %	2.00
Haryana Leather Chemicals Ltd	33.4 Cr.	68.1	124/62.6	14.9	87.4	1.47 %	8.04 %	5.47 %	10.0
Hardcastle & Waud Mfg Co Ltd	51.0 Cr.	749	1,178/600	39.5	670	0.00 %	6.20 %	2.87 %	10.0
Grauer & Weil (India) Ltd	4,391 Cr.	96.8	120/78.0	28.6	20.7	0.52 %	23.3 %	17.6 %	1.00
DMCC Speciality Chemicals Ltd	763 Cr.	306	453/241	35.4	91.1	0.33 %	14.6 %	9.87 %	10.0
Industry Average	13,098.96 Cr	818.68		47.09	179.72	0.38%	13.05%	25.68%	6.44

All Competitor Stocks of HP Adhesives Ltd

Quarterly Result

Metric	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025
Sales	50.42	61.64	58.32	55.17	57.86	59.32	62.60	54.75	59.31	60.52	58.87	65.72	66.19
Expenses	48.49	59.58	54.09	49.48	50.84	53.18	55.26	46.97	50.50	52.95	52.39	59.77	60.59
Operating Profit	1.93	2.06	4.23	5.69	7.02	6.14	7.34	7.78	8.81	7.57	6.48	5.95	5.60
OPM %	3.83%	3.34%	7.25%	10.31%	12.13%	10.35%	11.73%	14.21%	14.85%	12.51%	11.01%	9.05%	8.46%
Other Income	0.40	1.14	0.17	-0.30	0.56	0.98	1.04	0.62	0.88	1.48	0.17	1.29	1.50
Interest	0.61	0.56	0.71	0.60	0.43	0.23	0.21	0.18	0.56	0.47	0.51	0.58	0.59
Depreciation	0.69	0.77	0.78	0.81	0.88	1.03	1.08	1.11	1.08	1.13	1.15	1.17	1.25
Profit before tax	1.03	1.87	2.91	3.98	6.27	5.86	7.09	7.11	8.05	7.45	4.99	5.49	5.26
Tax %	33.01%	26.74%	13.75%	22.11%	38.28%	22.87%	26.09%	26.72%	30.43%	24.30%	17.23%	27.87%	21.86%
Net Profit	0.69	1.37	2.51	3.10	3.87	4.51	5.24	5.21	5.61	5.63	4.12	3.96	4.12
EPS in Rs	0.08	0.15	0.27	0.34	0.42	0.49	0.57	0.57	0.61	0.61	0.45	0.43	0.45

Last Updated: May 31, 2025, 5:41 am

Below is a detailed analysis of the quarterly data for HP Adhesives Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Sales, as of Mar 2025, the value is 66.19 Cr.. The value appears strong and on an upward trend. It has increased from 65.72 Cr. (Dec 2024) to 66.19 Cr., marking an increase of 0.47 Cr..
For Expenses, as of Mar 2025, the value is 60.59 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 59.77 Cr. (Dec 2024) to 60.59 Cr., marking an increase of 0.82 Cr..
For Operating Profit, as of Mar 2025, the value is 5.60 Cr.. The value appears to be declining and may need further review. It has decreased from 5.95 Cr. (Dec 2024) to 5.60 Cr., marking a decrease of 0.35 Cr..
For OPM %, as of Mar 2025, the value is 8.46%. The value appears to be declining and may need further review. It has decreased from 9.05% (Dec 2024) to 8.46%, marking a decrease of 0.59%.
For Other Income, as of Mar 2025, the value is 1.50 Cr.. The value appears strong and on an upward trend. It has increased from 1.29 Cr. (Dec 2024) to 1.50 Cr., marking an increase of 0.21 Cr..
For Interest, as of Mar 2025, the value is 0.59 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 0.58 Cr. (Dec 2024) to 0.59 Cr., marking an increase of 0.01 Cr..
For Depreciation, as of Mar 2025, the value is 1.25 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 1.17 Cr. (Dec 2024) to 1.25 Cr., marking an increase of 0.08 Cr..
For Profit before tax, as of Mar 2025, the value is 5.26 Cr.. The value appears to be declining and may need further review. It has decreased from 5.49 Cr. (Dec 2024) to 5.26 Cr., marking a decrease of 0.23 Cr..
For Tax %, as of Mar 2025, the value is 21.86%. The value appears to be improving (decreasing) as expected. It has decreased from 27.87% (Dec 2024) to 21.86%, marking a decrease of 6.01%.
For Net Profit, as of Mar 2025, the value is 4.12 Cr.. The value appears strong and on an upward trend. It has increased from 3.96 Cr. (Dec 2024) to 4.12 Cr., marking an increase of 0.16 Cr..
For EPS in Rs, as of Mar 2025, the value is 0.45. The value appears strong and on an upward trend. It has increased from 0.43 (Dec 2024) to 0.45, marking an increase of 0.02.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 15, 2025, 3:11 am

Metric	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Sales	85	118	165	233	236	251
Expenses	80	106	153	214	205	226
Operating Profit	4	12	11	19	31	26
OPM %	5%	10%	7%	8%	13%	10%
Other Income	-5	6	3	2	3	4
Interest	3	3	3	2	2	2
Depreciation	2	2	3	3	4	5
Profit before tax	-5	13	8	15	28	23
Tax %	-13%	24%	26%	28%	27%	23%
Net Profit	-5	10	6	11	21	18
EPS in Rs	-0.73	1.55	0.65	1.18	2.24	1.94
Dividend Payout %	0%	0%	0%	0%	13%	21%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2020-2021	2021-2022	2022-2023	2023-2024	2024-2025
YoY Net Profit Growth (%)	300.00%	-40.00%	83.33%	90.91%	-14.29%
Change in YoY Net Profit Growth (%)	0.00%	-340.00%	123.33%	7.58%	-105.19%

HP Adhesives Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2020-2021 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	24%
3 Years:	15%
TTM:	6%

Compounded Profit Growth
10 Years:	%
5 Years:	46%
3 Years:	44%
TTM:	-11%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	-16%
1 Year:	-50%

Return on Equity
10 Years:	%
5 Years:	12%
3 Years:	10%
Last Year:	10%

Last Updated: Unknown

Balance Sheet

Last Updated: July 25, 2025, 1:05 pm

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Equity Capital	13	13	18	18	18	18
Reserves	-11	-0	119	130	151	166
Borrowings	36	43	19	9	3	8
Other Liabilities	19	35	40	28	26	36
Total Liabilities	57	90	195	185	198	228
Fixed Assets	11	19	26	39	52	73
CWIP	1	7	18	17	16	4
Investments	-0	-0	-0	-0	18	25
Other Assets	45	64	152	129	111	126
Total Assets	57	90	195	185	198	228

Below is a detailed analysis of the balance sheet data for HP Adhesives Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Equity Capital, as of Mar 2025, the value is 18.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 18.00 Cr..
For Reserves, as of Mar 2025, the value is 166.00 Cr.. The value appears strong and on an upward trend. It has increased from 151.00 Cr. (Mar 2024) to 166.00 Cr., marking an increase of 15.00 Cr..
For Borrowings, as of Mar 2025, the value is 8.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from 3.00 Cr. (Mar 2024) to 8.00 Cr., marking an increase of 5.00 Cr..
For Other Liabilities, as of Mar 2025, the value is 36.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 26.00 Cr. (Mar 2024) to 36.00 Cr., marking an increase of 10.00 Cr..
For Total Liabilities, as of Mar 2025, the value is 228.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 198.00 Cr. (Mar 2024) to 228.00 Cr., marking an increase of 30.00 Cr..
For Fixed Assets, as of Mar 2025, the value is 73.00 Cr.. The value appears strong and on an upward trend. It has increased from 52.00 Cr. (Mar 2024) to 73.00 Cr., marking an increase of 21.00 Cr..
For CWIP, as of Mar 2025, the value is 4.00 Cr.. The value appears to be declining and may need further review. It has decreased from 16.00 Cr. (Mar 2024) to 4.00 Cr., marking a decrease of 12.00 Cr..
For Investments, as of Mar 2025, the value is 25.00 Cr.. The value appears strong and on an upward trend. It has increased from 18.00 Cr. (Mar 2024) to 25.00 Cr., marking an increase of 7.00 Cr..
For Other Assets, as of Mar 2025, the value is 126.00 Cr.. The value appears strong and on an upward trend. It has increased from 111.00 Cr. (Mar 2024) to 126.00 Cr., marking an increase of 15.00 Cr..
For Total Assets, as of Mar 2025, the value is 228.00 Cr.. The value appears strong and on an upward trend. It has increased from 198.00 Cr. (Mar 2024) to 228.00 Cr., marking an increase of 30.00 Cr..

Notably, the Reserves (166.00 Cr.) exceed the Borrowings (8.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operating Activity +	1	11	-10	-5	23	10
Cash from Investing Activity +	-5	-16	-67	8	-15	-9
Cash from Financing Activity +	4	5	86	-12	-7	2
Net Cash Flow	-1	0	9	-10	0	2

Free Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Free Cash Flow	-32.00	-31.00	-8.00	10.00	28.00	18.00

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 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Debtor Days	86	71	71	58	56	61
Inventory Days	125	146	124	97	118	130
Days Payable	103	116	95	44	40	53
Cash Conversion Cycle	107	100	100	112	134	137
Working Capital Days	-48	-19	84	102	106	144
ROCE %		34%	11%	12%	18%	14%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025
Promoters	71.35%	71.35%	71.35%	71.35%	71.35%	71.35%	71.35%	71.35%	71.35%	71.35%	71.35%	71.35%
FIIs	4.08%	0.50%	0.01%	0.10%	2.81%	0.71%	0.25%	0.08%	0.10%	0.03%	0.16%	0.04%
DIIs	0.57%	0.57%	0.57%	2.09%	3.72%	3.72%	3.72%	3.72%	3.28%	2.86%	2.82%	1.34%
Public	23.99%	27.58%	28.06%	26.47%	22.12%	24.22%	24.68%	24.86%	25.28%	25.76%	25.66%	27.27%
No. of Shareholders	25,952	25,147	25,152	22,912	26,757	43,680	49,909	52,081	56,369	56,881	57,835	57,430

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Quant Small Cap Fund	2,594,000	0.05	13.63	2,965,723	2025-05-13 02:55:34	-12.53%

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 25	Mar 24
FaceValue	2.00	2.00
Basic EPS (Rs.)	1.99	2.24
Diluted EPS (Rs.)	1.99	2.24
Cash EPS (Rs.)	2.50	2.71
Book Value[Excl.RevalReserv]/Share (Rs.)	20.06	18.38
Book Value[Incl.RevalReserv]/Share (Rs.)	20.06	18.38
Revenue From Operations / Share (Rs.)	27.52	25.69
PBDIT / Share (Rs.)	3.33	3.71
PBIT / Share (Rs.)	2.82	3.24
PBT / Share (Rs.)	2.58	3.06
Net Profit / Share (Rs.)	1.99	2.24
NP After MI And SOA / Share (Rs.)	1.99	2.24
PBDIT Margin (%)	12.10	14.43
PBIT Margin (%)	10.23	12.61
PBT Margin (%)	9.38	11.91
Net Profit Margin (%)	7.21	8.71
NP After MI And SOA Margin (%)	7.21	8.71
Return on Networth / Equity (%)	9.89	12.17
Return on Capital Employeed (%)	13.85	17.38
Return On Assets (%)	7.99	10.39
Total Debt / Equity (X)	0.03	0.00
Current Ratio (X)	3.57	4.61
Quick Ratio (X)	2.20	2.81
Interest Coverage Ratio (X)	14.22	18.12
Interest Coverage Ratio (Post Tax) (X)	9.48	11.82
Enterprise Value (Cr.)	443.24	869.29
EV / Net Operating Revenue (X)	1.75	3.68
EV / EBITDA (X)	14.49	25.52
MarketCap / Net Operating Revenue (X)	1.75	3.72
Price / BV (X)	2.40	5.20
Price / Net Operating Revenue (X)	1.75	3.72
EarningsYield	0.04	0.02

After reviewing the key financial ratios for HP Adhesives Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Mar 25, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 24) which recorded 2.00.
For Basic EPS (Rs.), as of Mar 25, the value is 1.99. This value is below the healthy minimum of 5. It has decreased from 2.24 (Mar 24) to 1.99, marking a decrease of 0.25.
For Diluted EPS (Rs.), as of Mar 25, the value is 1.99. This value is below the healthy minimum of 5. It has decreased from 2.24 (Mar 24) to 1.99, marking a decrease of 0.25.
For Cash EPS (Rs.), as of Mar 25, the value is 2.50. This value is below the healthy minimum of 3. It has decreased from 2.71 (Mar 24) to 2.50, marking a decrease of 0.21.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 25, the value is 20.06. It has increased from 18.38 (Mar 24) to 20.06, marking an increase of 1.68.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 25, the value is 20.06. It has increased from 18.38 (Mar 24) to 20.06, marking an increase of 1.68.
For Revenue From Operations / Share (Rs.), as of Mar 25, the value is 27.52. It has increased from 25.69 (Mar 24) to 27.52, marking an increase of 1.83.
For PBDIT / Share (Rs.), as of Mar 25, the value is 3.33. This value is within the healthy range. It has decreased from 3.71 (Mar 24) to 3.33, marking a decrease of 0.38.
For PBIT / Share (Rs.), as of Mar 25, the value is 2.82. This value is within the healthy range. It has decreased from 3.24 (Mar 24) to 2.82, marking a decrease of 0.42.
For PBT / Share (Rs.), as of Mar 25, the value is 2.58. This value is within the healthy range. It has decreased from 3.06 (Mar 24) to 2.58, marking a decrease of 0.48.
For Net Profit / Share (Rs.), as of Mar 25, the value is 1.99. This value is below the healthy minimum of 2. It has decreased from 2.24 (Mar 24) to 1.99, marking a decrease of 0.25.
For NP After MI And SOA / Share (Rs.), as of Mar 25, the value is 1.99. This value is below the healthy minimum of 2. It has decreased from 2.24 (Mar 24) to 1.99, marking a decrease of 0.25.
For PBDIT Margin (%), as of Mar 25, the value is 12.10. This value is within the healthy range. It has decreased from 14.43 (Mar 24) to 12.10, marking a decrease of 2.33.
For PBIT Margin (%), as of Mar 25, the value is 10.23. This value is within the healthy range. It has decreased from 12.61 (Mar 24) to 10.23, marking a decrease of 2.38.
For PBT Margin (%), as of Mar 25, the value is 9.38. This value is below the healthy minimum of 10. It has decreased from 11.91 (Mar 24) to 9.38, marking a decrease of 2.53.
For Net Profit Margin (%), as of Mar 25, the value is 7.21. This value is within the healthy range. It has decreased from 8.71 (Mar 24) to 7.21, marking a decrease of 1.50.
For NP After MI And SOA Margin (%), as of Mar 25, the value is 7.21. This value is below the healthy minimum of 8. It has decreased from 8.71 (Mar 24) to 7.21, marking a decrease of 1.50.
For Return on Networth / Equity (%), as of Mar 25, the value is 9.89. This value is below the healthy minimum of 15. It has decreased from 12.17 (Mar 24) to 9.89, marking a decrease of 2.28.
For Return on Capital Employeed (%), as of Mar 25, the value is 13.85. This value is within the healthy range. It has decreased from 17.38 (Mar 24) to 13.85, marking a decrease of 3.53.
For Return On Assets (%), as of Mar 25, the value is 7.99. This value is within the healthy range. It has decreased from 10.39 (Mar 24) to 7.99, marking a decrease of 2.40.
For Total Debt / Equity (X), as of Mar 25, the value is 0.03. This value is within the healthy range. It has increased from 0.00 (Mar 24) to 0.03, marking an increase of 0.03.
For Current Ratio (X), as of Mar 25, the value is 3.57. This value exceeds the healthy maximum of 3. It has decreased from 4.61 (Mar 24) to 3.57, marking a decrease of 1.04.
For Quick Ratio (X), as of Mar 25, the value is 2.20. This value exceeds the healthy maximum of 2. It has decreased from 2.81 (Mar 24) to 2.20, marking a decrease of 0.61.
For Interest Coverage Ratio (X), as of Mar 25, the value is 14.22. This value is within the healthy range. It has decreased from 18.12 (Mar 24) to 14.22, marking a decrease of 3.90.
For Interest Coverage Ratio (Post Tax) (X), as of Mar 25, the value is 9.48. This value is within the healthy range. It has decreased from 11.82 (Mar 24) to 9.48, marking a decrease of 2.34.
For Enterprise Value (Cr.), as of Mar 25, the value is 443.24. It has decreased from 869.29 (Mar 24) to 443.24, marking a decrease of 426.05.
For EV / Net Operating Revenue (X), as of Mar 25, the value is 1.75. This value is within the healthy range. It has decreased from 3.68 (Mar 24) to 1.75, marking a decrease of 1.93.
For EV / EBITDA (X), as of Mar 25, the value is 14.49. This value is within the healthy range. It has decreased from 25.52 (Mar 24) to 14.49, marking a decrease of 11.03.
For MarketCap / Net Operating Revenue (X), as of Mar 25, the value is 1.75. This value is within the healthy range. It has decreased from 3.72 (Mar 24) to 1.75, marking a decrease of 1.97.
For Price / BV (X), as of Mar 25, the value is 2.40. This value is within the healthy range. It has decreased from 5.20 (Mar 24) to 2.40, marking a decrease of 2.80.
For Price / Net Operating Revenue (X), as of Mar 25, the value is 1.75. This value is within the healthy range. It has decreased from 3.72 (Mar 24) to 1.75, marking a decrease of 1.97.
For EarningsYield, as of Mar 25, the value is 0.04. This value is below the healthy minimum of 5. It has increased from 0.02 (Mar 24) to 0.04, marking an increase of 0.02.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of HP Adhesives Ltd as of August 5, 2025 is: 41.62

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 August 5, 2025, HP Adhesives Ltd is Overvalued by 16.26% compared to the current share price 49.70

Intrinsic Value of HP Adhesives Ltd as of August 5, 2025 is: 43.53

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 August 5, 2025, HP Adhesives Ltd is Overvalued by 12.41% compared to the current share price 49.70

Last 5 Year EPS CAGR: 4.59%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (92.50 cr) compared to borrowings (19.67 cr), indicating strong financial stability. The company has shown consistent growth in sales (181.33 cr) and profit (13.67 cr) over the years.	The stock has a low average ROCE of 14.83%, which may not be favorable. The stock has a high average Working Capital Days of 61.50, which may not be favorable. The stock has a high average Cash Conversion Cycle of 115.00, which may not be favorable.

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 HP Adhesives Ltd:
1. Net Profit Margin: 7.21%
  - 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: 13.85% (Industry Average ROCE: 13.05%)
  - 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%: 9.89% (Industry Average ROE: 25.68%)
  - 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): 9.48
  - 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: 2.2
  - 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: 25.6 (Industry average Stock P/E: 47.09)
  - 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: 0.03
  - 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

HP Adhesives Ltd. is a Public Limited Listed company incorporated on 07/05/2019 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L24304MH2019PLC325019 and registration number is 325019. Currently company belongs to the Industry of Chemicals - Speciality. Company's Total Operating Revenue is Rs. 251.25 Cr. and Equity Capital is Rs. 18.37 Cr. for the Year ended 31/03/2025.

INDUSTRY	ADDRESS	CONTACT
Chemicals - Speciality - Others	11, Unique House, Mumbai Maharashtra 400099	info@hpadhesives.com http://www.hpadhesives.com

Management
Name	Position Held
Mrs. Anjana Haresh Motwani	Chairperson & Executive Director
Mr. Karan Haresh Motwani	Managing Director
Ms. Nidhi Haresh Motwani	Executive Director
Mr. Ajeet Anant Walavalkar	Independent Director
Mr. Surendra Kumar Mehta	Independent Director
Mr. Rajendra Kumar Jain	Independent Director

FAQ

What is the intrinsic value of HP Adhesives Ltd?

HP Adhesives Ltd's intrinsic value (as of 04 August 2025) is ₹41.62 which is 16.26% lower the current market price of ₹49.70, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 456 Cr. market cap, FY2025-2026 high/low of 104/42.6, reserves of 166 Cr, and liabilities of 228 Cr.

What is the Market Cap of HP Adhesives Ltd?

The Market Cap of HP Adhesives Ltd is 456 Cr..

What is the current Stock Price of HP Adhesives Ltd as on 04 August 2025?

The current stock price of HP Adhesives Ltd as on 04 August 2025 is 49.7.

What is the High / Low of HP Adhesives Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of HP Adhesives Ltd stocks is ₹104/42.6.

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

The Stock P/E of HP Adhesives Ltd is 25.6.

What is the Book Value of HP Adhesives Ltd?

The Book Value of HP Adhesives Ltd is 20.0.

What is the Dividend Yield of HP Adhesives Ltd?

The Dividend Yield of HP Adhesives Ltd is 0.60 %.

What is the ROCE of HP Adhesives Ltd?

The ROCE of HP Adhesives Ltd is 13.9 %.

What is the ROE of HP Adhesives Ltd?

The ROE of HP Adhesives Ltd is 10.1 %.

What is the Face Value of HP Adhesives Ltd?

The Face Value of HP Adhesives Ltd is 2.00.