SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : HP Adhesives Ltd

BSE: 543433 NSE: HPAL ISIN: INE0GSL01024
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does HP Adhesives Ltd belong to?
HP Adhesives Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is HP Adhesives Ltd a good quality company?
HP Adhesives Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is HP Adhesives Ltd undervalued or overvalued?
HP Adhesives Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is HP Adhesives Ltd a good buy now?
HP Adhesives Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of HP Adhesives Ltd?
HP Adhesives Ltd revenue growth is 6.5% for FY-2025 , which is below its 5 year CAGR of 24.4% , indicating slower growth.
Q.2 Gross Profit margin of HP Adhesives Ltd?
HP Adhesives Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2025 , which is in line with its 5 year median of 11.1% , indicating stable margins.
Q.3 Operating Profit Margin of HP Adhesives Ltd?
HP Adhesives Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.98% for FY-2025 , which is in line with its 5 year median of 9.98% indicating stable margins.
Q.4 Net Profit Margin of HP Adhesives Ltd?
HP Adhesives Ltd Net Profit Margin is 7.1% for FY-2025 , is in line with with its 5 year median of 7.1%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 11.1 11.1
Operating Profit Margin 9.98 9.98
Net Profit Margin 7.1 7.1
Q.5 Return on Asset of HP Adhesives Ltd?
HP Adhesives Ltd Return on Asset is 8.39%, which is in line with its 5 year historical median of 8.39%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of HP Adhesives Ltd?
HP Adhesives Ltd Return on equity is 10.11% for FY-2025 , which is in line with its historical median of 10.11%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of HP Adhesives Ltd?
HP Adhesives Ltd Return on capital employed is 14.12% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of HP Adhesives Ltd?
HP Adhesives Ltd Cash conversion cycle is 101 days, above its historical median of 82 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.18 1.23
ROE 10.11 10.11
ROCE 14.12 14.12
Cash Conversion Cycle 101 days 82 days
Q.9 Debt to Equity ratio of HP Adhesives Ltd?
HP Adhesives Ltd Debt-to-Equity ratio is 0.03 , which is lower with the industry average of 0.13 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of HP Adhesives Ltd?
HP Adhesives Ltd Debt to cash flow from operations is 0.59 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of HP Adhesives Ltd?
Promoters hold 71.35% of the HP Adhesives Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of HP Adhesives Ltd vs industry peers?
HP Adhesives Ltd revenue CAGR is 24.35% , compared to the industry median CAGR of 7.7% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 251.3 202
Gross Profit 27.9 23.6
Operating Profit 25 24
Net Profit 18 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.18 0.93
ROE 10.11 10.18
ROCE 14.12 13.07
Cash Conversion Cycle (days) 101.18 62

Valuation & price assessment

Q.1 Stock return of HP Adhesives Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -17.89% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - -17.9% -27.5%
Q.3 Valuation ratios of HP Adhesives Ltd vs historical?
The current P/E is lower 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 26.52 60.37 41.15
Price to Book 1.87 5.53 2.38
Price to Sales 1.35 3.66 1.93
EV to EBITDA 13.1 32.81 13.71

Check more companies

1. Navin Fluorine Intl
2. Godrej Industries
3. Deepak Nitrite
4. Atul
5. Tata Chemicals
6. BASF India
7. Aarti Inds
8. Aether Industries
9. Deepak Fert & Petro
10. Fine Organic Inds.
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

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.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×