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Hindustan Composites Limited
(HINDCOMPOS)
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Rating:69Neutral
Price Target:
₹508.00
▲(12.02% Upside)
Action:Downgraded
Date:07/02/26
The score is driven primarily by solid financial strength, led by a conservatively financed balance sheet, offset by inconsistent free cash flow and some recent margin pressure. Technicals are mixed (price above key averages but negative MACD and subdued momentum), and valuation is reasonable but not especially compelling given the low dividend yield.
Positive Factors
Conservative balance sheet
Minimal leverage and rising equity provide durable financial flexibility: the company can fund working-capital swings, opportunistic capex, or weather demand shocks without relying on expensive external debt. This reduces default risk and supports strategic initiatives over multiple quarters.
Negative Factors
Inconsistent cash generation
Volatile operating cash flow and intermittent negative free cash flow constrain the firm's ability to self-fund investments, pay sustainable dividends, and build reserves. Recurrent FCF variability raises dependence on timing of working capital and could limit strategic flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Minimal leverage and rising equity provide durable financial flexibility: the company can fund working-capital swings, opportunistic capex, or weather demand shocks without relying on expensive external debt. This reduces default risk and supports strategic initiatives over multiple quarters.
Read all positive factors
Hindustan Composites Limited (HINDCOMPOS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹6.81B
Dividend Yield0.46%
Average Volume (3M)701.00
Price to Earnings (P/E)21.9
Beta (1Y)1.35
Revenue Growth15.39%
EPS Growth-11.12%
CountryIN
Employees556
SectorBasic Materials
Sector Strength58
IndustryAuto - Parts
Share Statistics
EPS (TTM)20.17
Shares Outstanding14,769,000
10 Day Avg. Volume391
30 Day Avg. Volume701
Financial Highlights & Ratios
PEG Ratio-1.49
Price to Book (P/B)0.45
Price to Sales (P/S)1.37
P/FCF Ratio-362.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hindustan Composites Limited Business Overview & Revenue Model
Company Description
Established in 1964 and headquartered in Mumbai, India, Hindustan Composites Limited specializes in the development, manufacturing, and distribution of fiber-based friction materials throughout the country. Their comprehensive product line of fric...
How the Company Makes Money
Hindustan Composites primarily makes money by manufacturing and selling friction-material-based products (notably brake linings and clutch facings) for use in vehicles and industrial equipment. Revenue is generated through (a) sales to original eq...
Hindustan Composites Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
88
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.47B | 3.75B | 3.25B | 2.98B | 2.83B | 2.32B |
| Gross Profit | 1.75B | 1.38B | 1.82B | 630.91M | 1.49B | 1.09B |
| EBITDA | 567.02M | 554.50M | 551.20M | 522.16M | 414.52M | 333.56M |
| Net Income | 297.80M | 311.10M | 350.00M | 344.12M | 274.70M | 216.02M |
Balance Sheet | ||||||
| Total Assets | 12.59B | 12.64B | 11.96B | 10.81B | 10.00B | 10.02B |
| Cash, Cash Equivalents and Short-Term Investments | 559.30M | 361.70M | 489.70M | 403.06M | 481.00M | 407.54M |
| Total Debt | 34.90M | 16.80M | 300.00K | 1.15M | 10.10M | 3.03M |
| Total Liabilities | 1.22B | 1.19B | 1.12B | 943.44M | 791.10M | 851.23M |
| Stockholders Equity | 11.37B | 11.45B | 10.85B | 9.87B | 9.21B | 9.17B |
Cash Flow | ||||||
| Free Cash Flow | 138.10M | -14.20M | 91.70M | 38.16M | 86.30M | -22.10M |
| Operating Cash Flow | 202.20M | 208.50M | 298.60M | 402.68M | 157.00M | 49.13M |
| Investing Cash Flow | -275.00M | -295.10M | -179.10M | -348.64M | -210.10M | 47.99M |
| Financing Cash Flow | -21.90M | -38.20M | -31.20M | -39.36M | -23.80M | -30.72M |
Hindustan Composites Limited Technical Analysis
Positive
453.50
Price Trends
430.42
Positive
419.55
Positive
433.93
Positive
Market Momentum
2.00
Negative
68.06
Neutral
38.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HINDCOMPOS, the sentiment is Positive. The current price of 453.5 is above the 20-day moving average (MA) of 417.04, above the 50-day MA of 430.42, and above the 200-day MA of 433.93, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 68.06 is Neutral, neither overbought nor oversold. The STOCH value of 38.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HINDCOMPOS.
Hindustan Composites Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹6.81B | 21.95 | ― | 0.46% | 15.39% | -11.12% | |
68 Neutral | ₹9.08B | 23.66 | ― | 1.90% | 22.79% | 53.44% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | ₹5.21B | 23.93 | ― | 3.69% | 5.20% | -24.22% | |
55 Neutral | ₹9.83B | 24.40 | ― | 1.24% | 11.07% | 10.41% | |
51 Neutral | ₹3.24B | 124.81 | ― | 0.22% | -2.15% | -50.37% |
* Basic Materials Sector Average
IN:HINDCOMPOS
Hindustan Composites Limited
460.95
-21.48
-4.45%
IN:MENONBE
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162.00
40.76
33.62%
IN:MUNJALAU
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98.26
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27.35%
IN:MUNJALSHOW
Munjal Showa Limited
130.15
-6.38
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IN:SUNDRMBRAK
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823.35
28.63
3.60%
Hindustan Composites Limited Corporate Events
Hindustan Composites Defends Accounting Treatment in NSE Query on FY26 Results
May 4, 2026
Hindustan Composites has clarified to the National Stock Exchange that its standalone and consolidated financial results for the quarter and year ended 31 March 2026 comply with Schedule III of the Companies Act, 2013 and applicable Indian Account...
Hindustan Composites Clears FY26 Results, Announces Dividend and Capacity Expansion
Apr 23, 2026
Hindustan Composites Limited reported that its board has approved the audited standalone and consolidated financial results for the quarter and full year ended March 31, 2026, along with related cash flow statements and statements of assets and li...
Hindustan Composites Defends Compliance of FY25 Financial Results Format to NSE
Apr 20, 2026
Hindustan Composites Limited has clarified to the National Stock Exchange of India that its standalone and consolidated financial results for the quarter and year ended 31 March 2025 comply with SEBI’s prescribed format. The company explaine...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.