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Check Before You Invest : Hindoostan Mills Ltd

BSE: 509895 NSE: ISIN: INE832D01020
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Hindoostan Mills Ltd belong to?
Hindoostan Mills Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Hindoostan Mills Ltd a good quality company?
Hindoostan Mills Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Hindoostan Mills Ltd undervalued or overvalued?
Hindoostan Mills Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 0.76 0.80
Price to Sales 1.97 0.53
EV to EBITDA 112.01 6.12
Q.4 Is Hindoostan Mills Ltd a good buy now?
Hindoostan Mills Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Hindoostan Mills Ltd?
Hindoostan Mills Ltd revenue growth is -62.4% for FY-2025, which is below its 5-year CAGR of -25.15%, indicating slower growth.

Q.2 Gross Profit margin of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is -26.6% for FY-2025, which is below its 5-year median of -2.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -40.44% for FY-2025, which is below its 5-year median of -5.21% indicating decreasing margins.

Q.4 Net Profit Margin of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Net Profit Margin is -32.5% for FY-2025, is below its 5-year median of -3.15%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -26.6 -2.4
Operating Profit Margin (%) -40.44 -5.21
Net Profit Margin (%) -32.5 -3.15

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Return on Asset is -16.52%, which is below its 5-year historical median of -3.94%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Return on capital employed is -23.6% for FY-2025, which is below its 5-year historical median of -0.9%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Return on equity is -24.13% for FY-2025, which is below its 5-year historical median of -5.71%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Cash conversion cycle is 128 days, above its 5-year historical median of 81 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.51 1.17
ROE (%) -24.13 -5.71
ROCE (%) -23.6 -0.9
Cash Conversion Cycle 128 days 81 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Hindoostan Mills Ltd?
Hindoostan Mills Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Hindoostan Mills Ltd?

Q.1 Promoter shareholding and pledge status of Hindoostan Mills Ltd?
Promoters hold 60.48% of the Hindoostan Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Hindoostan Mills Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Hindoostan Mills Ltd vs industry peers?
Hindoostan Mills Ltd revenue CAGR is -25.15%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -62.4 0
Gross Profit Growth (%) -356.6 9.1
Operating Profit Growth (%) 0 8.5
Net Profit Growth (%) -948 13
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.51 0.95
ROE (%) -24.13 4.25
ROCE (%) -23.6 7.55
Cash Conversion Cycle (days) 127.51 102

Valuation & price assessment

Q.1 Stock return of Hindoostan Mills Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -7.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-7.1% -9% -7.6% -7.7%
Q.2 Valuation ratios of Hindoostan Mills Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 20.16
Price to Book 0.76 0.80 1.32
Price to Sales 1.97 0.53 1.06
EV to EBITDA 112.01 6.12 9.31

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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