Hindustan Adhesives Ltd Stock Analysis

BSE: 514428 | NSE: | Plastic Products | Small Cap

BSE Share Price Jan 20, 18:01
351.70 -10.90 (-3.01%)

DeciZen - Make an Informed Decision on Hindustan Adhesives

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

1. Quality

2. Valuation

Somewhat overvalued
P/E P/S EV/EBITDA

3. Price Trend

Semi Strong

FAQ's

1. Is Hindustan Adhesives Ltd a good quality company?

Data is not available for this company.

2. Is Hindustan Adhesives Ltd undervalued or overvalued?

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

3. Is Hindustan Adhesives Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Hindustan Adhesives Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Hindustan Adhesives:

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

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 9.4%10.9%12.6%9.5%11.2%15.7%6.7%7%9.4%8.9%-
Value Creation Index -0.3-0.2-0.1-0.3-0.20.1-0.5-0.5-0.3-0.4-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 66.776.377.876.369.274.175.5139153214316
YoY Gr. Rt. %-14.3%2%-1.9%-9.3%7.2%1.9%83.5%10.4%39.6%-
Adj EPS 2.82.84.52.74.29.24.33.49.911.818.1
YoY Gr. Rt. %-0.7%60.9%-40%53.1%120.7%-53%-20.7%190.4%18.9%-
BVPS (₹) 23.126.33134.238.347.452.357.367.784.694.3
Adj Net Profit 1.41.42.31.42.14.72.21.85.169
Cash Flow from Ops. 4.55.52.910.18.27.25.411.3106-
Debt/CF from Ops. 5.23.88.32.22.52.99.14.7713.9-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 13.8%25.3%41.4%39.6%
Adj EPS 17.4%23.3%39.9%18.9%
BVPS 15.517.217.425
Share Price 40.4% 38.5% 61% 193%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 12.911.415.88.311.521.48.66.215.915.520.2
Op. Profit Mgn % 8.510.210.811.91414.510.788.1108.3
Net Profit Mgn % 2.11.931.83.16.32.91.33.32.82.9
Debt to Equity 21.51.51.31.10.91.81.821.90.8
Working Cap Days 10810011913313713316812312311798
Cash Conv. Cycle 544848556769805657518

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 20.20%

Sales growth is growing at healthy rate in last 3 years 41.43%

Net Profit is growing at healthy rate in last 3 years 39.93%

Debt to equity has declined versus last 3 years average to 1.93

Sales growth is good in last 4 quarters at 101.01%

No data to display

Latest Financials - Hindustan Adhesives Ltd.

Standalone Consolidated
TTM EPS (₹) 18.1 9.3
TTM Sales (₹ Cr.) 316 76.2
BVPS (₹.) 94.3 0
Reserves (₹ Cr.) 43 19
P/BV 3.73 0.00
PE 19.43 37.50
From the Market
52 Week Low / High (₹) 96.10 / 398.70
All Time Low / High (₹) 0.50 / 398.70
Market Cap (₹ Cr.) 180
Equity (₹ Cr.) 5.1
Face Value (₹) 10
Industry PE 26.1

Management X-Ray of Hindustan Adhesives :

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 Adhesives Ltd

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.
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