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Hindustan Adhesives Ltd. Stock Analysis

Small Cap
Evaluated by 206 users | BSE: 514428 | NSE: |
Plastic Products
Hindustan Adhesives Limited (HAL) is a company promoted by the Bagla family. Established in the year 1988, Hindustan Adhesives (HAL), an ISO 9002 company, has been trusted by customers for its wide variety of integrated adhesive products.HAL has been in the business of manufacturing coated...

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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 15.68%13.36%9.36%10.94%12.59%9.47%11.23%15.71%6.68%7.03%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 52.862.966.776.377.876.369.274.175.5139
Y-o-Y Gr. Rt.-19.2%6%14.3%2%-1.9%-9.3%7.2%1.9%83.5%
Adjusted EPS (Rs.) 4.073.612.792.814.522.714.159.164.313.41
Y-o-Y Gr. Rt.--11.3%-22.7%0.7%60.9%-40%53.1%120.7%-53%-20.9%
Book Value per Share (Rs.) 16.5219.9823.1426.3330.9934.1538.3247.3852.2757.27
Adjusted Net Profit 2.11.91.41.42.31.42.14.72.21.8
Net Op. Cash Flow (Rs. Cr.) 73.34.55.52.910.18.27.25.411.3
Debt to Cash Flow from Ops 1.675.065.223.768.272.222.532.919.134.74
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Hindustan Adhesives Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.3%12.3%26.1%83.5%
Adjusted EPS -2%-5.5%-6.3%-20.9%
Book Value per Share 14.813.114.39.6
Share Price 25.3% 29.5% 5% 25.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 28.419.7912.9311.3615.788.3211.4621.378.646.23
Operating Profit Margin (%) 11.729.668.5310.1610.8411.8914.0414.510.77.96
Net Profit Margin (%) 3.942.942.141.882.981.823.076.322.921.26
Debt to Equity 1.391.6221.531.51.291.060.861.841.83
Working Capital Days 110106108100119133137133168123
Cash Conversion Cycle 57515448485567698056
Entity Percentage Holding
Promoters 68.48%
Non-Institutions 31.52%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Hindustan Adhesives Ltd.'s performance infers:

Hindustan Adhesives Ltd. earnings have declined by -5.5%, whereas share price has appreciated 29.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Hindustan Adhesives Ltd. share prices over the last 10 years. Here is what we found out:

Hindustan Adhesives Ltd. share price has appreciated 16.4% annually over the past ten years.

Hindustan Adhesives Limited (HAL) is a company promoted by the Bagla family. Established in the year 1988, Hindustan Adhesives (HAL), an ISO 9002 company, has been trusted by customers for its wide variety of integrated adhesive products.

HAL has been in the business of manufacturing coated products for packaging since 1989. And no sooner had the process begun, the pioneering spirit behind HAL made it as India's first and only integrated adhesive tape manufacturer with specialisation in

Hindustan Adhesives Limited (HAL) is a company promoted by the Bagla family. Established in the year 1988, Hindustan Adhesives (HAL), an ISO 9002 company, has been trusted by customers for its wide variety of integrated adhesive products.

HAL has been in the business of manufacturing coated products for packaging since 1989. And no sooner had the process begun, the pioneering spirit behind HAL made it as India's first and only integrated adhesive tape manufacturer with specialisation in BOPP film for packaging tapes.

The expertise in handling plastic materials and experience in all types of adhesive coatings encouraged HAL to explore the world market for developing new products. The challenge of producing 'Self Adhesive Tear Tape' was the first major achievement of the company after a vigorous effort. It can now boast of producing a world-class product and having a market in every part of the globe, spanning all continents and winning various awards for development of product.

HAL is the only company in the country to be equipped with multiple state-of-the-art facilities, all under one roof. The range of facilities include:

  • Acrylic Adhesive Coating
  • Hot Melt Adhesive Coating
  • Specialised BOPP Film Manufactured for packaging tapes
  • Precision Slitting of any substrates- Both adhesive and non adhesive
  • Spooling for long lengths of narrow width products
  • Printing in 3-4 colours
  • Customised Adhesive coated products

Product range of the company includes:

Tear Tapes The company has been the first from India to introduce speciality ' Self Adhesive Tear Tapes' for the global market. The product is a MOPP film based narrow width, self adhesive tear tape coated with world class Aqueous Acrylic Adhesive, complying with the United States Federal Food and Cosmetic Act. Ezee Rip is designed to make your packaging customer friendly. Its ideally suited for packaging consumer goods like cigarettes, chewing gums, audio-video cassettes, shaving blades and confectionery items.

Packaging Tapes Packaging Tapes as produced by HAL, are offered in a complete range to suit the weight and dimensions of the cartons. Tailor made solutions are provided for a cost effective sealing of cartons and the products are available with custom printed messages.

Speciality Tapes Speciality tapes are developed specifically according to bonding requirements. The interaction of backing material (filmic, non-woven, fabrics, various foams), adhesive system (acrylate or rubber based) and liner material (paper, foil) is decisive.

This includes:

-Foam Tapes, Double Sided Tapes, Security Tapes, Bakery Tapes, Custom Taylored Tapes, Polyester Tapes, Cellulose Tapes, Cable Tapes, Masking Tapes, Handle Tapes

BOPP Film HAL is the only integrated adhesive tape manufacturer in India by having facilities to extrude BOPP film by a dedicated process to enhance the tensile strength of the film and produce a truly balanced and oriented film. This process provides an equal tensile strength in both the MD and TD direction and also reduces the elongation tendency of the film. This stable film is best suited for adhesive coating and our customers have acknowledged the superior properties of the same.

Clientele

  • ITC LIMITED
  • Godfrey Phillips India Limited
  • VST Industries Limited
  • GTC Industries Limited
  • Asia Tobacco Co. Limited
  • The Hyderabad Deccan Cigarette Factory Pvt. Ltd.
  • Western Tobacco Limited
  • Reliable Cigarette and Tobacco Industries Pvt. Ltd.
  • National Tobacco Company Limited
  • Cadbury India Limited
  • Castrol India Limited
  • DHL Wpx Limited
  • GlaxoSmithKline Consumer
  • Hindustan Coco Cola

Achievements/ recognition :

  • Hindustan Adhesives (HAL), is an ISO 9002 company.
  • The company has been the first from India to introduce speciality ' Self Adhesive Tear Tapes' for the global market.
  • HAL is the only integrated adhesive tape manufacturer in India.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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