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

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 12:48 am

Market Cap	725 Cr.
Current Price	78.9
High / Low	131/75.0
Stock P/E	35.2
Book Value	19.2
Dividend Yield	0.38 %
ROCE	17.7 %
ROE	12.6 %
Face Value	2.00
PEG Ratio	4.61

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
HP Adhesives Ltd	725 Cr.	78.9	131/75.0	35.2	19.2	0.38 %	17.7 %	12.6 %	2.00
Haryana Leather Chemicals Ltd	44.4 Cr.	90.5	124/56.8	9.83	87.2	1.10 %	8.96 %	7.25 %	10.0
Hardcastle & Waud Mfg Co Ltd	61.8 Cr.	909	1,355/451	32.4	663	0.00 %	7.00 %	5.98 %	10.0
Grauer & Weil (India) Ltd	4,577 Cr.	101	120/63.5	28.6	19.2	0.50 %	26.1 %	19.6 %	1.00
DMCC Speciality Chemicals Ltd	972 Cr.	390	453/245	73.3	85.4	0.26 %	10.8 %	5.68 %	10.0
Industry Average	12,868.59 Cr	928.74		58.01	173.84	0.31%	14.09%	10.82%	6.44

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	23.92	46.59	43.66	50.42	61.64	58.32	55.17	57.86	59.32	62.60	54.75	59.35	60.52
Expenses	22.27	43.12	39.42	48.49	59.58	54.09	49.48	50.84	53.18	55.26	46.27	50.50	52.95
Operating Profit	1.65	3.47	4.24	1.93	2.06	4.23	5.69	7.02	6.14	7.34	8.48	8.85	7.57
OPM %	6.90%	7.45%	9.71%	3.83%	3.34%	7.25%	10.31%	12.13%	10.35%	11.73%	15.49%	14.91%	12.51%
Other Income	-0.80	3.02	0.21	0.40	1.14	0.17	-0.30	0.56	0.98	1.04	0.62	0.84	1.48
Interest	0.68	1.04	0.80	0.61	0.56	0.71	0.60	0.43	0.23	0.21	0.88	0.56	0.47
Depreciation	0.69	0.72	0.74	0.69	0.77	0.78	0.81	0.88	1.03	1.08	1.11	1.08	1.13
Profit before tax	-0.52	4.73	2.91	1.03	1.87	2.91	3.98	6.27	5.86	7.09	7.11	8.05	7.45
Tax %	-21.15%	25.79%	26.12%	33.01%	26.74%	13.75%	22.11%	38.28%	22.87%	26.09%	26.72%	30.43%	24.30%
Net Profit	-0.41	3.51	2.15	0.69	1.37	2.51	3.10	3.87	4.51	5.24	5.21	5.61	5.63
EPS in Rs	-0.06	0.49	0.23	0.08	0.15	0.27	0.34	0.42	0.49	0.57	0.57	0.61	0.61

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 22, 2024, 2:20 pm

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	85	118	165	233	236	233
Expenses	80	106	153	214	205	202
Operating Profit	4	12	11	19	31	31
OPM %	5%	10%	7%	8%	13%	13%
Other Income	-5	6	3	2	3	3
Interest	3	3	3	2	2	2
Depreciation	2	2	3	3	4	4
Profit before tax	-5	13	8	15	28	28
Tax %	-13%	24%	26%	28%	27%
Net Profit	-5	10	6	11	21	21
EPS in Rs	-0.73	1.55	0.65	1.18	2.24	2.24
Dividend Payout %	0%	0%	0%	0%	13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

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

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2020-2021 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	%
3 Years:	26%
TTM:	-1%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	26%
TTM:	20%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	-18%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	10%
Last Year:	13%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 1:29 pm

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	13	13	18	18	18	18
Reserves	-11	-0	119	130	151	158
Borrowings	36	43	19	9	3	3
Other Liabilities	19	35	40	28	26	26
Total Liabilities	57	90	195	185	198	205
Fixed Assets	11	19	26	39	52	52
CWIP	1	7	18	17	16	19
Investments	0	0	0	0	18	12
Other Assets	45	64	152	129	111	122
Total Assets	57	90	195	185	198	205

Reserves and Borrowings Chart

Cash Flow

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

Free Cash Flow

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

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
Debtor Days	86	71	71	58	56
Inventory Days	125	146	124	97	118
Days Payable	103	116	95	44	40
Cash Conversion Cycle	107	100	100	112	134
Working Capital Days	97	85	107	107	109
ROCE %		34%	11%	12%	18%

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	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	11.79%	5.43%	5.01%	4.08%	0.50%	0.01%	0.10%	2.81%	0.71%	0.25%	0.08%	0.10%
DIIs	0.00%	0.00%	0.00%	0.57%	0.57%	0.57%	2.09%	3.72%	3.72%	3.72%	3.72%	3.28%
Public	16.87%	23.22%	23.64%	23.99%	27.58%	28.06%	26.47%	22.12%	24.22%	24.68%	24.86%	25.28%
No. of Shareholders	9,991	25,710	26,116	25,952	25,147	25,152	22,912	26,757	43,680	49,909	52,081	56,369

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	2,965,723	0.1	27.15	2,965,723	2024-12-12	0%

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	2.24	5.91	3.95	7.74	-3.64
Diluted EPS (Rs.)	2.24	5.91	3.95	7.74	-3.64
Cash EPS (Rs.)	2.71	7.67	4.81	9.20	-2.18
Book Value[Excl.RevalReserv]/Share (Rs.)	18.38	80.70	74.74	9.74	1.91
Book Value[Incl.RevalReserv]/Share (Rs.)	18.38	80.70	74.74	9.74	1.91
Dividend / Share (Rs.)	0.30	0.00	0.00	0.00	0.00
Revenue From Operations / Share (Rs.)	25.69	126.80	89.58	90.89	65.01
PBDIT / Share (Rs.)	3.71	11.94	7.69	13.61	5.01
PBIT / Share (Rs.)	3.24	10.18	6.14	12.14	3.55
PBT / Share (Rs.)	3.06	8.18	4.44	10.18	-4.17
Net Profit / Share (Rs.)	2.24	5.91	3.27	7.74	-3.64
PBDIT Margin (%)	14.43	9.41	8.58	14.96	7.70
PBIT Margin (%)	12.61	8.02	6.85	13.35	5.45
PBT Margin (%)	11.91	6.45	4.95	11.19	-6.41
Net Profit Margin (%)	8.71	4.66	3.64	8.51	-5.59
Return on Networth / Equity (%)	12.17	7.32	4.37	79.46	-190.33
Return on Capital Employeed (%)	17.38	12.10	7.70	70.01	92.08
Return On Assets (%)	10.39	5.88	3.07	11.20	-8.32
Long Term Debt / Equity (X)	0.00	0.01	0.03	0.67	0.31
Total Debt / Equity (X)	0.00	0.03	0.09	2.48	13.71
Asset Turnover Ratio (%)	1.23	1.23	1.15	1.61	0.00
Current Ratio (X)	4.61	3.21	2.74	0.91	0.79
Quick Ratio (X)	2.81	1.72	1.90	0.43	0.44
Inventory Turnover Ratio (X)	2.54	3.30	2.58	3.81	0.00
Interest Coverage Ratio (X)	18.12	9.57	4.51	6.93	2.51
Interest Coverage Ratio (Post Tax) (X)	11.82	6.34	2.92	4.94	2.04
Enterprise Value (Cr.)	869.29	668.22	686.21	0.00	0.00
EV / Net Operating Revenue (X)	3.68	2.87	4.17	0.00	0.00
EV / EBITDA (X)	25.52	30.46	48.58	0.00	0.00
MarketCap / Net Operating Revenue (X)	3.72	2.85	4.38	0.00	0.00
Price / BV (X)	5.20	4.48	5.25	0.00	0.00
Price / Net Operating Revenue (X)	3.72	2.85	4.38	0.00	0.00
EarningsYield	0.02	0.01	0.01	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 85.48

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 21, 2024, is Undervalued by 8.34% compared to the current share price 78.90

Intrinsic Value of as of December 21, 2024 is: 92.01

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 December 21, 2024, is Undervalued by 16.62% compared to the current share price 78.90

Last 5 Year EPS CAGR: 7.64%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (91.17 cr) compared to borrowings (18.83 cr), indicating strong financial stability. The company has shown consistent growth in sales (178.33 cr) and profit (14.50 cr) over the years.	The stock has a low average ROCE of 15.00%, which may not be favorable. The stock has a high average Working Capital Days of 101.00, which may not be favorable. The stock has a high average Cash Conversion Cycle of 110.60, which may not be favorable.

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: 8.71%
  - 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: 17.38% (Industry Average ROCE: 14.09%)
  - 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%: 12.17% (Industry Average ROE: 10.82%)
  - 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): 11.82
  - 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: 2.81
  - 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: 35.2 (Industry average Stock P/E: 58.01)
  - 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
  - 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 - Others. Company’s Total Operating Revenue is Rs. 164.60 Cr. and Equity Capital is Rs. 18.37 Cr. for the Year ended 31/03/2022.

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 latest intrinsic value of HP Adhesives Ltd?

The latest intrinsic value of HP Adhesives Ltd as on 21 December 2024 is ₹85.48, which is 8.34% higher than the current market price of ₹78.90. The stock has a market capitalization of 725 Cr. and recorded a high/low of 131/75.0 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹158 Cr and total liabilities of ₹205 Cr.

What is the Market Cap of HP Adhesives Ltd?

The Market Cap of HP Adhesives Ltd is 725 Cr..

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

The current stock price of HP Adhesives Ltd as on 21 December 2024 is 78.9.

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

In FY 2024-2025, the High / Low of HP Adhesives Ltd stocks is 131/75.0.

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

The Stock P/E of HP Adhesives Ltd is 35.2.

What is the Book Value of HP Adhesives Ltd?

The Book Value of HP Adhesives Ltd is 19.2.

What is the Dividend Yield of HP Adhesives Ltd?

The Dividend Yield of HP Adhesives Ltd is 0.38 %.

What is the ROCE of HP Adhesives Ltd?

The ROCE of HP Adhesives Ltd is 17.7 %.

What is the ROE of HP Adhesives Ltd?

The ROE of HP Adhesives Ltd is 12.6 %.

What is the Face Value of HP Adhesives Ltd?

The Face Value of HP Adhesives Ltd is 2.00.