Check Before You Invest : Hindustan Motors Ltd

Q: 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: Is Hindustan Motors Ltd a good quality company?

Hindustan Motors Ltd is a weak quality company, based on a inconsistent 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: Is Hindustan Motors Ltd undervalued or overvalued?

Hindustan Motors 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. Price to Earnings, Current: 100.05, Historic Median: 22.42. Price to Book, Current: 12.29, Historic Median: -8.88. Price to Sales, Current: -, Historic Median: -. EV to EBITDA, Current: 92.14, Historic Median: 30.81

Q: 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

Q: 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 60.69%, indicating slower growth.

Q: 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 791.7%, indicating increasing margins.

Q: 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 above its 5-year median of -329.98% indicating increasing margins.

Q: Net Profit Margin of Hindustan Motors Ltd?

Hindustan Motors Ltd Net Profit Margin is 692.47% for FY-2025, is in line with its 5-year median of 692.47%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 841.6, Historic Median: 791.7. Operating Profit Margin (%), Current: -139.33, Historic Median: -329.98. Net Profit Margin (%), Current: 692.47, Historic Median: 692.47

Q: 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: Debt to Equity ratio of Hindustan Motors Ltd?

Hindustan Motors Ltd Debt-to-Equity ratio is 0.72, which is above the industry average of 0.04, indicating higher debt levels in the industry.

Check Before You Invest : Hindustan Motors Ltd

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 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 Hindustan Motors Ltd undervalued or overvalued?

Hindustan Motors 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	100.05	22.42
Price to Book	12.29	-8.88
Price to Sales	-	-
EV to EBITDA	92.14	30.81

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

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 Hindustan Motors Ltd?

Hindustan Motors Ltd revenue growth is -30.8% for FY-2025, which is below its 5-year CAGR of 60.69%, 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 791.7%, 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 above its 5-year median of -329.98% indicating increasing margins.

Q.4 Net Profit Margin of Hindustan Motors Ltd?

Hindustan Motors Ltd Net Profit Margin is 692.47% for FY-2025, is in line with its 5-year median of 692.47%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	841.6	791.7
Operating Profit Margin (%)	-139.33	-329.98
Net Profit Margin (%)	692.47	692.47

B: Does the business utilize capital efficiently?

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.

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

Q.6 Debt to Equity ratio of Hindustan Motors Ltd?

Hindustan Motors Ltd Debt-to-Equity ratio is 0.72, which is above the industry average of 0.04, indicating higher debt levels in the industry.

Q.7 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

D: Promoter shareholding and pledge status of Hindustan Motors Ltd?

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)

E: How does Hindustan Motors Ltd performance compare with that of its Peers?

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 30.35%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-30.8	30.4
Gross Profit Growth (%)	-26.9	-
Operating Profit Growth (%)	0	-
Net Profit Growth (%)	-36	-

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.04	0.19
ROE (%)	-	1.73
ROCE (%)	-	1.86
Cash Conversion Cycle (days)	-470.61	-175

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 13.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	13.4%	16.9%	6.8%	-34.8%

Q.2 Valuation ratios of Hindustan Motors Ltd vs historical?

The current P/E ratio of 100.05 is higher than its historical median of 22.42, indicating that the stock is trading above 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	100.05	22.42	29.57
Price to Book	12.29	-8.88	4.34
Price to Sales	-	-	2.57
EV to EBITDA	92.14	30.81	17.11

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Check Before You Invest : Hindustan Motors Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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