Hindustan Composites Limited (HINDCOMPOS) AI Stock Analysis

• Market Cap: ₹6.97B
• Dividend Yield: 0.43%
• Average Volume (3M): 1.56K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.10
• Revenue Growth: 11.99%
• EPS Growth: 2.27%
• Country: IN
• Employees: 556
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): 5.05
• Shares Outstanding: 14,769,000
• 10 Day Avg. Volume: 1,823
• 30 Day Avg. Volume: 1,556
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹536.00
• Price Target Upside: 13.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ₹536.00 ▲(13.64% Upside)

Hindustan Composites Limited exhibits strong financial stability with robust growth, but faces challenges in cash flow efficiency. Technical indicators suggest caution due to mixed signals. The stock's valuation is fair, though not particularly compelling, with limited dividend yield.

Hindustan Composites Limited Business Overview & Revenue Model

Company Description

Hindustan Composites Limited (HINDCOMPOS) is a leading manufacturer of friction materials and composites, primarily catering to the automotive, railways, and industrial sectors. The company specializes in providing high-quality brake linings, clutch facings, disc brake pads, and other related components that are essential for various applications across these industries. With a strong commitment to innovation and quality, Hindustan Composites Limited has established a robust presence in both domestic and international markets.

How the Company Makes Money

Hindustan Composites Limited generates revenue through the manufacturing and sale of friction materials and composite products. The company's key revenue streams include the automotive sector, where it supplies brake linings and clutch facings to original equipment manufacturers (OEMs) and the aftermarket. Additionally, the company serves the railways sector, providing specialized components for train braking systems. The industrial sector also contributes to its income, as Hindustan Composites supplies various industries with essential friction solutions. Significant partnerships with automotive giants and consistent demand for high-performance braking products are critical factors contributing to the company's earnings.

Hindustan Composites Limited Financial Statement Overview

Summary

Hindustan Composites Limited demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is particularly strong, characterized by low leverage and high equity. While cash flow generation is positive, there are signs of potential efficiency challenges in converting earnings into cash. Overall, the company has solid growth prospects.

Income Statement

Hindustan Composites Limited shows a strong performance in revenue growth, with a notable increase from 2020 to 2025. The gross profit margin has been consistently high, indicating strong pricing power and cost management. Net profit margin is solid, reflecting effective operational efficiency. However, the EBIT margin decreased in 2025, which could indicate rising operational costs or decreased efficiency.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio indicating limited leverage and strong equity financing. The equity ratio is high, showing a strong equity base relative to total assets. Return on equity is healthy, suggesting effective use of equity capital. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flows from operations show variability, but free cash flow is positive and growing, indicating good cash generation capability. However, the operating cash flow to net income ratio declined in 2025, which might signal efficiency issues in converting income to cash. The free cash flow to net income ratio also suggests room for improvement in cash generation relative to earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2020
Income Statement
Total Revenue	3.25B	2.98B	2.83B	2.32B	1.78B
Gross Profit	1.82B	1.41B	1.49B	1.09B	917.48M
EBITDA	589.90M	522.16M	414.52M	333.56M	200.41M
Net Income	350.00M	344.12M	274.70M	216.02M	104.70M
Balance Sheet
Total Assets	11.96B	10.81B	10.00B	10.02B	8.51B
Cash, Cash Equivalents and Short-Term Investments	489.70M	403.06M	481.00M	407.54M	356.76M
Total Debt	300.00K	1.15M	10.10M	3.03M	58.59M
Total Liabilities	1.12B	943.44M	791.10M	851.23M	901.56M
Stockholders Equity	10.85B	9.87B	9.21B	9.17B	7.61B
Cash Flow
Free Cash Flow	91.70M	38.16M	86.30M	-22.10M	-42.90M
Operating Cash Flow	298.60M	402.68M	157.00M	49.13M	25.61M
Investing Cash Flow	-179.10M	-348.64M	-210.10M	47.99M	47.25M
Financing Cash Flow	-31.20M	-39.36M	-23.80M	-30.72M	-14.65M

Hindustan Composites Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 471.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HINDCOMPOS, the sentiment is Negative. The current price of 471.65 is below the 20-day moving average (MA) of 484.48, below the 50-day MA of 487.43, and below the 200-day MA of 472.77, indicating a bearish trend. The MACD of -4.40 indicates Positive momentum. The RSI at 36.91 is Neutral, neither overbought nor oversold. The STOCH value of 16.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HINDCOMPOS.

Hindustan Composites Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MENONBE	74 Outperform	₹7.46B	27.41		1.51%	16.53%	17.20%
HINDCOMPOS	70 Outperform	₹6.97B	20.61		0.43%	11.99%	2.27%
MUNJALAU	65 Neutral	₹7.43B	20.43		1.32%	9.81%	-5.62%
SUNDRMBRAK	56 Neutral	₹3.07B	97.41		0.20%	5.14%	-61.05%
Sector *	44 Neutral	C$923.76M	-8.68	-0.23%	2.69%	24.53%	-41.45%