Hindustan Composites Ltd Stock Analysis

BSE: 509635 | NSE: HINDCOMPOS | Auto Ancillary | Small Cap

BSE Share Price May 17, 18:01
287.35 -5.45 (-1.86%)

DeciZen - Make an Informed Decision on Hindustan Composites

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is Hindustan Composites Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Hindustan Composites Ltd is a below average quality company.

2. Is Hindustan Composites Ltd undervalued or overvalued?

The key valuation ratios of Hindustan Composites Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Hindustan Composites Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Hindustan Composites Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Hindustan Composites:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Hindustan Composites Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 3%1.6%3.5%5%3.9%3.7%3.5%2.5%1.7%2.2%-
Value Creation Index -0.8-0.9-0.8-0.6-0.7-0.7-0.8-0.8-0.9-0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 84.793.2138152153166199197179186224
YoY Gr. Rt. %-10.1%48.5%9.9%0.7%8.5%19.9%-1.3%-8.7%3.7%-
Adj EPS 9.35.31218.315.716.517.112.58.61215.4
YoY Gr. Rt. %--43.3%127.8%52.6%-13.9%4.6%4.1%-27.2%-30.8%39.2%-
BVPS (₹) 337.4343.9354.8371.9430469.4501.2516.5522.5554.6594.5
Adj Net Profit 13.77.817.72723.224.325.318.412.717.723
Cash Flow from Ops. 9.74.83.611.28.311.352.84.94.19.2-
Debt/CF from Ops. 0.81.71.90.50.60.40.10.71.40.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.1%4%-2.3%3.7%
Adj EPS 2.9%-5.2%-11.2%39.2%
BVPS 5.75.23.46.2
Share Price 8.3% -16.2% 12.1% -0.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 2.81.53.453.93.73.52.51.72.22.7
Op. Profit Mgn % -5.3-5.921.724.821.123.418.512.811.715.715
Net Profit Mgn % 16.18.312.817.715.214.612.79.47.19.510.1
Debt to Equity 0000000000-
Working Cap Days 7925942021802022181861932222160
Cash Conv. Cycle 615132322690813130

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 2.70%

Sales growth is good in last 4 quarters at 36.02%

Sales growth has been subdued in last 3 years -2.25%

Net Profit has been subdued in last 3 years -11.15%

Latest Financials - Hindustan Composites Ltd.

Standalone Consolidated
TTM EPS (₹) 15.4 15.3
TTM Sales (₹ Cr.) 224 224
BVPS (₹.) 594.5 593.1
Reserves (₹ Cr.) 871 869
P/BV 0.49 0.49
PE 19.07 18.97
From the Market
52 Week Low / High (₹) 251.50 / 373.85
All Time Low / High (₹) 2.87 / 802.67
Market Cap (₹ Cr.) 432
Equity (₹ Cr.) 7.4
Face Value (₹) 5
Industry PE 31.8

Management X-Ray of Hindustan Composites :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Hindustan Composites Ltd

The company was incorporated on July 1, 1964. The certificate of commencement of business was obtained on August 19, 1964. It was jointly promoted by Turner & Newall, Manchester, a wholly owned subsidiary of Turner & Newall, with 74% equity participation. The company acquired the undertaking of Asbestos, Magnesia & Friction Material, comprising its entire manufacturing businesses as well as the estate, factory and office, with approximately 18 acres of land at Agra road. In November the company entered into technical assistance agreements with the operating subsidiaries of Turner & Newall.

Hindustan Composites is a pioneer in the development, manufacturing & marketing of Asbestos Industrial Products and Friction Materials in India for over 45 years.

Composites, with its wide range of products suitable for a number of general and specialized applications, has been catering to the diversified needs of core sector industries, such as Railways, Engineering, Mining, Aerospace, Steel, Chemical, Petrochemical, Fertilizer, power generation, Ship building, Atomic Energy, Electrical, Oil exploration, Automotive, etc.

A technology driven company, it is committed to continuous upgradation, development of materials and processes, to ensure the highest quality standards.

Products of this company are being exported to more than 30 countries. This company operates in Latin America, Greece, Middle East and South East Asia. Export turnover of this company is US $ 2 Million.

Product range of the company includes:

Friction Material:

  • Automotive Brake Linings
  • Automotive Roll Linings
  • Automotive Clutch Facings
  • Automotive Disc Brake Pads
  • Railway Brake Blocks
  • Friction Sheets
  • Industrial Roll Linings

Industrial Sealing & Insulation Products:

  • Jointing Sheets
  • Packings
  • Asbestos Yarns
  • Asbestos Cloths
  • Rubber Proofed Sheets
  • Rubber Proofed Tapes
  • Asbestos Millboard Sheets
  • Asbestos Millboard Discs
  • Compestos
  • Limpet

Their other major strengths, besides quality products and service, are multi-location production facilities and a wide network of Distributors and Wholesale Dealers.   

Milestones:

  • 1982: A strike by the employees had an impact on the sales for the year. During the year the company received Government approval for additional capacities of 1325 tonnes of brake linings and 10 lakh nos. of clutch facings. A collaboration agreement with VALCO, FRANCE for the manufacture of diaphragm  clutches was also signed. 
  • 1983: The company has acquired 44,886 sq.mts. of land at Paithan in Aurangabad district of Maharastra, during the period for setting up one or more remaining plants of the company for expansion/diversification. 
  • 1984: The working was adversely affected due to sluggish market conditions, keen competition, escalation in the cost of inputs, higher interest burden and steep increase in the Dollar Rupee parity. During the year application was filed for Industrial licence for the manufacture of speciality industrial gaskets in technical collaboration with FLEXITALLIC LTD., U.K.                  
  • 1986: Manufacture of diaphragm clutches at Jalna commenced.        
  •  1989-90:New markets were identified for its products and new items were added to its range of exports. Depreciation of the Rupee against the US and Canadian dollar imposed burden on the cost of raw asbestos, a principal raw material. The Jalna plant was proposed to be disposed. Necessary approvals were awaited.        

Certification:

  • The Company's R & D Centre has been accorded recognition by the Department of Science and Technology, Government of India.
  • Minister of state for Commerce and Industry has given export award to Hindustan Composites.
  • It has got product certification from AMECA obtained for asbestos free product range consisting of heavy duty drum brake linings, disc brake pads, woven clutch facings, roll linings and friction sheets.
  • The quality control and continuous quality improvement program had enabled HCL to have accrediation by Det Norske Veritas for ISO - 9002 - Quality system, since the year 1996.
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