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INVESTMENT INSIGHTS

Check Before You Invest : Hindustan Motors Ltd

BSE: 500500 NSE: HINDMOTORS ISIN: INE253A01025
  |   Sector:  Automobiles   |   Industry:  Automobiles - Passenger Cars

Snapshot

Q.1 Which industry/sub-sector does Hindustan Motors Ltd belong to?
Hindustan Motors Ltd belongs to the Automobiles sector, operating specifically within the Automobiles - Passenger Cars segment.
Q.2 Is Hindustan Motors Ltd a good quality company?
Hindustan Motors Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Hindustan Motors Ltd undervalued or overvalued?
Hindustan Motors Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Hindustan Motors Ltd a good buy now?
Hindustan Motors 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

Q.1 Revenue growth of Hindustan Motors Ltd?
Hindustan Motors Ltd revenue growth is -30.8% for FY-2025 , which is below its 5 year CAGR of 60.7% , indicating slower growth.
Q.2 Gross Profit margin of Hindustan Motors Ltd?
Hindustan Motors Ltd Gross profit margin which is the profit after deduction of direct costs, is 841.6% for FY-2025 , which is above its 5 year median of 602.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Hindustan Motors Ltd?
Hindustan Motors Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -139.33% for FY-2025 , which is below its 5 year median of -36.07% indicating decreasing margins.
Q.4 Net Profit Margin of Hindustan Motors Ltd?
Hindustan Motors Ltd Net Profit Margin is 692.47% for FY-2025 , is above with its 5 year median of 321.39%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 841.6 602.1
Operating Profit Margin -139.33 -36.07
Net Profit Margin 692.47 321.39
Q.5 Return on Asset of Hindustan Motors Ltd?
Hindustan Motors Ltd Return on Asset is 25.88%, which is in line with its 5 year historical median of 25.88%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Hindustan Motors Ltd?
Hindustan Motors Ltd Return on equity is 91.93% for FY-2025 , which is above its historical median of 0%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Hindustan Motors Ltd?
Hindustan Motors Ltd Return on capital employed is 53.69% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Hindustan Motors Ltd?
Hindustan Motors Ltd Cash conversion cycle is -471 days, below its historical median of -471 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.04 0.04
ROE 91.93 -
ROCE 53.69 -
Cash Conversion Cycle -471 days -471 days
Q.9 Debt to Equity ratio of Hindustan Motors Ltd?
Hindustan Motors Ltd Debt-to-Equity ratio is 0.72 , which is above with the industry average of -0.26 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Hindustan Motors Ltd?
Hindustan Motors Ltd Debt to cash flow from operations is -0.67 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindustan Motors Ltd?
Promoters hold 32.34% of the Hindustan Motors Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindustan Motors Ltd vs industry peers?
Hindustan Motors Ltd revenue CAGR is 60.69% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2.3 0.6
Gross Profit 16.8 0.6
Operating Profit -3 -2
Net Profit 16 0.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.04 0.02
ROE 91.93 -
ROCE 53.69 -
Cash Conversion Cycle (days) -470.61 -235

Valuation & price assessment

Q.1 Stock return of Hindustan Motors Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.4% 20.1% 6.3% -39.2%
Q.3 Valuation ratios of Hindustan Motors Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 99.88 22.40 25.08
Price to Book 12.27 -8.94 3.93
Price to Sales - - 2.30
EV to EBITDA 91.96 29.49 16.84

Check more companies

1. Mercury Metals
2. Hindustan Motors
3. Suzuki (India)
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