Hindustan Composites Limited (HINDCOMPOS) AI Stock Analysis

• Market Cap: ₹6.67B
• Dividend Yield: 0.44%
• Average Volume (3M): 1.26K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 1.15
• Revenue Growth: 11.99%
• EPS Growth: 2.27%
• Country: IN
• Employees: 556
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Auto - Parts
• EPS (TTM): 5.05
• Shares Outstanding: 14,769,000
• 10 Day Avg. Volume: 888
• 30 Day Avg. Volume: 1,260
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹497.00
• Price Target Upside: 10.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ₹497.00 ▲(10.08% Upside)

Hindustan Composites Limited's overall stock score is driven by its strong financial performance, particularly its robust balance sheet and revenue growth. However, technical analysis indicates a bearish trend, and valuation metrics suggest the stock is fairly valued but offers limited dividend income. The absence of earnings call data and corporate events means these factors do not influence the score.

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 cash flow conversion from earnings.

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	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	3.25B	3.25B	2.98B	2.83B	1.85B	2.32B
Gross Profit	1.69B	1.82B	1.41B	1.49B	1.09B	1.09B
EBITDA	589.33M	551.20M	522.16M	414.52M	338.56M	333.56M
Net Income	350.00M	350.00M	344.12M	274.70M	197.24M	216.02M
Balance Sheet
Total Assets	11.96B	11.96B	10.81B	10.00B	9.18B	10.02B
Cash, Cash Equivalents and Short-Term Investments	489.70M	489.70M	403.06M	481.00M	487.70M	407.54M
Total Debt	300.00K	300.00K	1.15M	10.10M	400.00K	3.03M
Total Liabilities	1.12B	1.12B	943.44M	791.10M	1.01B	851.23M
Stockholders Equity	10.85B	10.85B	9.87B	9.21B	8.17B	9.17B
Cash Flow
Free Cash Flow	0.00	91.70M	38.16M	86.30M	52.50M	-22.10M
Operating Cash Flow	0.00	298.60M	402.68M	157.00M	91.70M	49.13M
Investing Cash Flow	0.00	-179.10M	-348.64M	-210.10M	1.80M	47.99M
Financing Cash Flow	0.00	-31.20M	-39.36M	-23.80M	-85.80M	-30.72M

Hindustan Composites Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 451.50
• 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 451.5 is below the 20-day moving average (MA) of 467.78, below the 50-day MA of 478.88, and below the 200-day MA of 472.40, indicating a bearish trend. The MACD of -5.92 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 14.04 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	₹7.05B	25.91		1.59%	16.53%	17.20%
MUNJALAU	67 Neutral	₹8.83B	22.12		1.13%	8.73%	0.25%
HINDCOMPOS	64 Neutral	₹6.67B	20.06		0.44%	11.99%	2.27%
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
MUNJALSHOW	―	₹5.53B	22.18		3.26%	―	―
RBL	―	$5.76B	12.86		4.03%	―	―
SUNDRMBRAK	56 Neutral	₹3.06B	97.17		0.19%	5.14%	-61.05%