Hindustan Motors Ltd (HINDMOTORS) AI Stock Analysis

• Market Cap: ₹3.54B
• Dividend Yield: N/A
• Average Volume (3M): 266.86K
• Price to Earnings (P/E): 52.3
• Beta (1Y): 0.87
• Revenue Growth: -87.98%
• EPS Growth: -83.04%
• Country: IN
• Employees: 235
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): <0.01
• Shares Outstanding: 208,659,300
• 10 Day Avg. Volume: 413,417
• 30 Day Avg. Volume: 266,858
• PEG Ratio: -0.82
• Price to Book (P/B): 15.36
• Price to Sales (P/S): 217.75
• P/FCF Ratio: -18.19
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ₹16.00 ▼(-6.54% Downside)

Hindustan Motors Ltd faces significant challenges, primarily due to its volatile financial performance and weak technical indicators. The high P/E ratio further suggests overvaluation, limiting its appeal to investors. The absence of earnings call insights and corporate events means the score heavily relies on financial and technical analysis, both of which indicate caution.

Positive Factors

Revenue Growth

The increase in total revenue indicates a positive trajectory for Hindustan Motors, suggesting improved market demand and operational performance, which can contribute to long-term business stability.

Asset Growth

Growth in assets and cash reserves enhances financial stability, providing a buffer against economic fluctuations and supporting future investment opportunities.

Equity Improvement

Improvement in equity position indicates strengthening financial health, reducing risk and potentially lowering financing costs, which is beneficial for long-term growth.

Negative Factors

High Leverage

High leverage increases financial risk, potentially constraining the company's ability to invest in growth opportunities and manage economic downturns effectively.

Inconsistent Cash Flow

Inconsistent cash flow and liquidity issues can hinder the company's ability to meet short-term obligations and invest in long-term growth, posing a risk to financial stability.

Profitability Volatility

Inconsistent profitability undermines financial predictability, making it challenging to plan for sustainable growth and potentially affecting investor confidence.

Hindustan Motors Ltd Business Overview & Revenue Model

Company Description

Hindustan Motors Ltd (HINDMOTORS) is an Indian automotive manufacturer that was established in 1942 and is known for its production of passenger cars, commercial vehicles, and automotive components. The company has historically been recognized for its iconic Ambassador car, which became synonymous with Indian transportation. Over the years, Hindustan Motors has diversified its product offerings, catering to various segments of the automotive market, and is involved in the manufacturing, assembly, and marketing of vehicles and parts.

How the Company Makes Money

Hindustan Motors generates revenue primarily through the sale of its vehicles, including passenger cars and commercial vehicles. The company has a diversified revenue model that includes direct sales to consumers and fleet operators, as well as partnerships with dealers and distributors across India and potentially international markets. Key revenue streams include the sale of new vehicles, spare parts, and after-sales services. Additionally, Hindustan Motors may engage in collaborations with other automotive firms for joint ventures or technology sharing, which can enhance its product offerings and market reach. Factors contributing to its earnings include market demand for its vehicles, production efficiency, pricing strategies, and overall economic conditions impacting the automotive industry.

Hindustan Motors Ltd Financial Statement Overview

Summary

Hindustan Motors Ltd has shown revenue and asset growth, but faces significant volatility and leverage. The financial statements highlight challenges with profitability consistency and cash flow management, with high debt levels posing potential risks.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.78M	22.50M	32.48M	0.00	0.00	11.71M
Gross Profit	-1.90M	-1.92M	28.32M	-2.37M	-1.67M	10.21M
EBITDA	150.20M	190.04M	257.41M	-3.68M	209.76M	70.80M
Net Income	116.50M	155.70M	254.25M	450.00K	186.53M	37.63M
Balance Sheet
Total Assets	0.00	642.47M	527.98M	269.55M	302.88M	294.40M
Cash, Cash Equivalents and Short-Term Investments	544.63M	544.63M	376.51M	72.48M	87.85M	72.23M
Total Debt	0.00	179.15M	179.15M	179.15M	179.15M	179.15M
Total Liabilities	-319.04M	323.43M	364.61M	359.91M	394.22M	571.77M
Stockholders Equity	319.04M	319.04M	163.37M	-90.35M	-91.34M	-277.37M
Cash Flow
Free Cash Flow	0.00	-269.41M	-148.29M	12.00M	-181.81M	-46.67M
Operating Cash Flow	0.00	-269.41M	-147.94M	12.05M	-181.70M	-46.67M
Investing Cash Flow	0.00	257.73M	156.80M	-5.22M	161.57M	61.07M
Financing Cash Flow	0.00	-827.00K	-301.00K	-1.27M	-175.00K	-913.00K

Hindustan Motors Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.12
• 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 17.12 is below the 20-day moving average (MA) of 17.55, below the 50-day MA of 18.62, and below the 200-day MA of 23.75, indicating a bearish trend. The MACD of -0.49 indicates Negative momentum. The RSI at 34.62 is Neutral, neither overbought nor oversold. The STOCH value of 25.60 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	72 Outperform	₹47.18B	33.35	―	0.48%	6.04%	14.86%
FORCEMOT	69 Neutral	₹241.15B	28.00	―	0.23%	14.54%	126.08%
HYUNDAI	65 Neutral	₹1.94T	34.02	―	0.90%	-0.35%	-4.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ATULAUTO	56 Neutral	₹12.31B	45.57	―	―	20.23%	57.66%
OLAELEC	41 Neutral	₹156.58B	-6.47	―	―	―	―
HINDMOTORS	38 Underperform	₹3.54B	52.31	―	―	-87.98%	-83.04%

Hindustan Motors Ltd Corporate Events

Hindustan Motors Conducts 83rd AGM with Transparent Voting

Hindustan Motors Limited held its 83rd Annual General Meeting on September 24, 2025, where the scrutinizer’s report on voting was submitted in compliance with SEBI regulations. The meeting was conducted through video conferencing, and the scrutinizer, Anjan Kumar Roy, was appointed to ensure transparent voting processes for the resolutions discussed.

Hindustan Motors Announces 83rd AGM Details

Hindustan Motors Limited announced the publication of its 83rd Annual General Meeting details in major newspapers. This announcement is significant as it reflects the company’s ongoing commitment to transparency and communication with its stakeholders, potentially impacting its market perception positively.