Hindustan Motors Ltd (HINDMOTORS) AI Stock Analysis

• Market Cap: ₹4.71B
• Dividend Yield: N/A
• Average Volume (3M): 125.10K
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.79
• Revenue Growth: -66.50%
• EPS Growth: -65.99%
• Country: IN
• Employees: 235
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Manufacturers
• EPS (TTM): 0.20
• Shares Outstanding: 208,659,300
• 10 Day Avg. Volume: 66,613
• 30 Day Avg. Volume: 125,097
• 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: ₹23.00
• Price Target Upside: -0.78% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: ₹23.00 ▼(-0.78% Downside)

The overall stock score is primarily impacted by the company's financial volatility and high leverage, which present significant risks. Additionally, technical indicators show bearish momentum, and the stock's high P/E ratio suggests overvaluation. These factors collectively result in a low score, highlighting the need for careful consideration before investment.

Hindustan Motors Ltd Business Overview & Revenue Model

Company Description

Hindustan Motors Ltd (HINDMOTORS) is an Indian automotive manufacturer primarily known for producing passenger vehicles. Established in 1942, the company is one of the oldest car manufacturers in India and has historically been associated with the iconic Ambassador car. Hindustan Motors operates in the automotive sector, offering products and services related to the manufacture and sale of vehicles and automotive components.

How the Company Makes Money

Hindustan Motors makes money primarily through the manufacturing and sale of its vehicles, which historically included the Ambassador car, a model that was once a staple on Indian roads. The company generates revenue by selling vehicles to individual consumers, government bodies, and various institutional clients. Additionally, revenue streams include the sale of automotive parts and components. Hindustan Motors also explores partnerships and collaborations with other automotive companies to expand its product offerings and market reach. However, due to various challenges over the years, including competition and market changes, the company's operations have been significantly scaled down, impacting its revenue generation capabilities.

Hindustan Motors Ltd Financial Statement Overview

Summary

Despite notable revenue and asset growth, Hindustan Motors faces significant challenges with profitability consistency and cash flow management. High leverage and past financial volatility increase risk, though improvements in equity and revenue provide positive signals.

Income Statement

The company has shown significant revenue growth, with a notable increase in total revenue from 2024 to 2025, indicating a positive trajectory. However, the volatility in EBIT and net income margins across the years suggests inconsistent profitability. Gross profit margins have varied significantly, adding to the instability. Improvements in EBITDA margin are a positive sign, yet the overall income statement reflects a high-risk profile due to past losses.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The company has improved its equity position in recent years, moving from negative to positive equity, which is encouraging. The equity ratio remains low, suggesting that liabilities heavily burden the company. Despite these challenges, the increase in total assets and cash reserves provides some stability.

Cash Flow

Cash flows are inconsistent, with operating cash flow often negative, indicating potential liquidity issues. The free cash flow has shown growth recently, but the volatility and negative figures in prior years raise concerns. The operating cash flow to net income ratio is unfavorable, reflecting challenges in converting profits into cash. The cash flow statement suggests a need for better cash management and profitability conversion.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	243.80M	32.48M	0.00	0.00	11.71M
Gross Profit	243.80M	31.86M	-2.37M	-1.67M	10.21M
EBITDA	190.04M	257.41M	-3.68M	209.76M	70.80M
Net Income	155.70M	254.25M	450.00K	186.53M	37.63M
Balance Sheet
Total Assets	642.47M	527.98M	269.55M	302.88M	294.40M
Cash, Cash Equivalents and Short-Term Investments	544.63M	376.51M	72.48M	87.85M	72.23M
Total Debt	206.72M	179.15M	179.15M	179.15M	179.15M
Total Liabilities	323.43M	364.61M	359.91M	394.22M	571.77M
Stockholders Equity	319.04M	163.37M	-90.35M	-91.34M	-277.37M
Cash Flow
Free Cash Flow	-269.41M	-148.29M	12.00M	-181.81M	-46.67M
Operating Cash Flow	-269.41M	-147.94M	12.05M	-181.70M	-46.67M
Investing Cash Flow	257.73M	156.80M	-5.22M	161.57M	61.07M
Financing Cash Flow	-827.00K	-301.00K	-1.27M	-175.00K	-913.00K

Hindustan Motors Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HINDMOTORS, the sentiment is Negative. The current price of 23.18 is below the 20-day moving average (MA) of 23.88, below the 50-day MA of 27.55, and below the 200-day MA of 26.03, indicating a bearish trend. The MACD of -1.22 indicates Negative momentum. The RSI at 34.38 is Neutral, neither overbought nor oversold. The STOCH value of 21.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HINDMOTORS.

Hindustan Motors Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMLISUZU	75 Outperform	₹56.96B	40.04		0.47%	8.15%	16.15%
HYUNDAI	70 Outperform	₹1.82T	32.94		0.93%	-2.62%	-11.26%
FORCEMOT	70 Outperform	₹259.23B	30.09		0.11%	14.81%	97.91%
Sector *	61 Neutral	$17.22B	11.49	-5.97%	3.08%	1.37%	-15.54%
ATULAUTO	58 Neutral	₹11.80B	53.65		―	22.84%	13.75%
HINDMOTORS	40 Underperform	₹4.71B	40.11		―	-66.50%	-65.99%

Hindustan Motors Ltd Corporate Events

Hindustan Motors Announces Trading Window Closure for Compliance

Hindustan Motors Ltd has announced the closure of its trading window in compliance with SEBI regulations, starting from July 1, 2025, until 48 hours after the declaration of its financial results for the quarter ending June 30, 2025. This move is part of the company’s adherence to insider trading regulations, ensuring that designated persons and their immediate relatives are restricted from trading during this period, which underscores the company’s commitment to regulatory compliance and transparency.