Hindustan Motors Ltd (HINDMOTORS) AI Stock Analysis

• Market Cap: ₹2.54B
• Dividend Yield: N/A
• Average Volume (3M): 266.86K
• Price to Earnings (P/E): 1557.5
• Beta (1Y): 1.08
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ₹11.50 ▼(-42.79% Downside)
• Action: Downgraded Date: 11/25/25
• Date: Action: Downgraded 11/25/25

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 trend

Reported revenue increase from 2024 to 2025 suggests the company can expand top-line sales, supporting scale economies and improved resource allocation. If sustained, this trend underpins durable revenue diversification and strengthens the firm's ability to invest in product, distribution, or margin improvement over months.

Improved equity & asset cushion

Move from negative to positive equity and rising total assets/cash provides a more stable capital base and buffer against shocks. This structural improvement enhances solvency, makes refinancing easier, and supports operational continuity and strategic choices over the medium term.

Improving cash generation metrics

Recent free cash flow growth and improving EBITDA margin indicate better conversion of operating performance into cash. Sustained improvement would boost internal funding for capex and working capital, reduce reliance on external financing, and increase strategic flexibility long term.

Negative Factors

High leverage

A high debt-to-equity ratio means elevated fixed obligations and interest exposure, reducing financial resilience. Over 2-6 months this limits capacity to fund growth, increases refinancing and liquidity risk in rising-rate or stressed conditions, and constrains strategic investments.

Weak operating cash flow

Repeated negative operating cash flow signals difficulty converting accounting profits into cash and creates dependency on financing or asset sales. This structural weakness threatens working capital, supplier relationships, and the ability to fund capex without raising costly external capital.

Inconsistent profitability

Large swings in EBIT and net margins imply earnings are sensitive to cost structure or demand swings, making future profit predictability poor. Such instability undermines planning, investor confidence, and the firm's capacity to sustain investment in competitive differentiation over the medium term.

Hindustan Motors Ltd Business Overview & Revenue Model

Company Description

Hindustan Motors Limited manufactures and sells vehicles and related spare parts, and steel products and components in India. The company offers passenger cars under the Ambassador name; and light commercial vehicles under the Winner name. It also provides grey iron, SG iron, steel, and aluminum pressure die castings for passenger cars, LCVs, HCV, and tractor segments; and intricate castings, such as 3-cylinder and 4-cylinder blocks, heads, gear box housings, manifolds, SG iron casings, covers, wheel hubs, aluminum gear box extensions, steering arms, etc. In addition, the company offers profile forgings for passenger car, LCV, HCV, and tractor segments; and intricate forgings, such as 2-cylinder, 3-cylinder, and 4-cylinder crankshafts, as well as camshafts, stub axles, spindles, draw hooks, and various types of gears and shafts. Further, it is involved in the trading of spare parts of vehicles. The company was incorporated in 1942 and is based in Kolkata, India.

How the Company Makes Money

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.88M	22.50M	32.48M	0.00	0.00	11.71M
Gross Profit	-3.30M	-1.92M	28.32M	-2.37M	-1.67M	10.21M
EBITDA	84.90M	190.04M	257.41M	-3.68M	209.76M	70.80M
Net Income	68.30M	155.70M	254.25M	450.00K	186.53M	37.63M
Balance Sheet
Total Assets	634.93M	642.47M	527.98M	269.55M	302.88M	294.40M
Cash, Cash Equivalents and Short-Term Investments	533.11M	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	274.47M	323.43M	364.61M	359.91M	394.22M	571.77M
Stockholders Equity	360.46M	319.04M	163.37M	-90.35M	-91.34M	-277.37M
Cash Flow
Free Cash Flow	70.53M	-269.41M	-148.29M	12.00M	-181.81M	-46.67M
Operating Cash Flow	70.53M	-269.41M	-147.94M	12.05M	-181.70M	-46.67M
Investing Cash Flow	-60.41M	257.73M	156.80M	-5.22M	161.57M	61.07M
Financing Cash Flow	-52.00K	-827.00K	-301.00K	-1.27M	-175.00K	-913.00K

Hindustan Motors Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 20.1 is above the 20-day moving average (MA) of 14.76, above the 50-day MA of 16.29, and below the 200-day MA of 20.96, indicating a bearish trend. The MACD of -0.99 indicates Positive momentum. The RSI at 13.85 is Positive, neither overbought nor oversold. The STOCH value of 7.21 is Positive, 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
FORCEMOT	75 Outperform	₹268.90B	16.68	―	0.22%	14.54%	126.08%
HYUNDAI	65 Neutral	₹1.52T	37.82	―	0.91%	-0.35%	-4.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ATULAUTO	56 Neutral	₹10.87B	19.88	―	―	20.23%	57.66%
OLAELEC	43 Neutral	₹103.04B	-7.78	―	―	―	―
HINDMOTORS	38 Underperform	₹2.54B	1,557.49	―	―	-87.98%	-83.04%