HMT Ltd. (HMT) AI Stock Analysis

• Market Cap: ₹77.04B
• Dividend Yield: N/A
• Average Volume (3M): 7.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -22.76%
• EPS Growth: -106.03%
• Country: IN
• Employees: 714
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural - Machinery
• EPS (TTM): -0.77
• Shares Outstanding: 1,204,091,700
• 10 Day Avg. Volume: 2,825
• 30 Day Avg. Volume: 7,225
• PEG Ratio: 0.38
• Price to Book (P/B): -3.03
• Price to Sales (P/S): 40.47
• P/FCF Ratio: -118.45
• 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: 40 Underperform
• Price Target: ₹61.00 ▲(27.08% Upside)
• Action: Downgraded Date: 11/19/25
• Date: Action: Downgraded 11/19/25

HMT Ltd.'s overall stock score is primarily impacted by its poor financial performance, with significant challenges in profitability, leverage, and cash flow. Technical analysis indicates bearish momentum, further weighing on the stock. The negative P/E ratio and lack of dividend yield highlight valuation concerns. These factors collectively suggest a high-risk investment with limited upside potential.

Positive Factors

State ownership / legacy status

State ownership and a long corporate history provide structural durability: potential access to government procurement, regulatory visibility, and higher tolerance for restructuring cycles. As a legacy industrial firm, this status can support liquidity or strategic support during multi‑quarter turnarounds.

Established manufacturing expertise

Decades of machine‑tool and engineering operations imply retained technical capability, established production processes and asset base. These durable competencies enable redeployment into adjacent industrial or capital‑goods niches and support long‑term recovery if demand returns.

Retained operational workforce

Maintaining a workforce of 714 suggests continuing operational capacity and institutional knowledge. A retained skilled labor base preserves execution capability for manufacturing, maintenance and ramping production, lowering time and cost to scale operations in a multi‑quarter recovery.

Negative Factors

Negative equity and high leverage

Negative shareholders' equity and significant debt overhang are durable solvency concerns: they constrain funding options, increase refinancing risk, and prioritize creditor claims over investment. Overcoming structural leverage requires consistent cash generation or external capital over multiple quarters.

Persistent negative cash flows

Sustained negative operating and free cash flow undermines the company’s ability to fund CapEx, service debt, or invest in product renewal without external support. This structural cash‑generation shortfall raises the risk of operational compression or reliance on one‑time funding over many quarters.

Declining revenue and sustained losses

Material revenue decline and persistent net losses, alongside deteriorating margins, point to structural demand, pricing or competitiveness problems. Restoring profitability will require multi‑quarter revenue stabilization, margin recovery or business model changes, not just short‑term cost cuts.

HMT Ltd. Business Overview & Revenue Model

Company Description

HMT Limited manufactures and sells food processing machines in India and internationally. The company offers machine tools, including turning machines, grinding machines, gear manufacturing machines, special application machines, machining centers, die casting and plastic injection molding machines, precision ball screws, presses, CNC systems, and other GPMs. Its food processing machines comprise butter making and packing machines, plate heat exchangers, centrifugal pumps and separators, oil purification and clarification systems, and homogenizers. In addition, the company provides printing machinery, watches, tractors, and bearings. Further, the company offers various services, including refurbishing, testing and inspection services, precision tooling solutions, and project and consultancy services. HMT Limited was founded in 1949 and is headquartered in Bengaluru, India.

How the Company Makes Money

HMT generates revenue through the sale of its core products, including machine tools and industrial equipment, which account for a significant portion of its earnings. The company also offers maintenance services, spare parts, and training programs, creating additional revenue streams. Key partnerships with major manufacturers and suppliers in the industry allow HMT to expand its reach and improve its product offerings. Furthermore, HMT benefits from government contracts and projects in sectors like defense and aerospace, which provide stable income sources. The company's focus on innovation and customer service enhances its competitive position and contributes to its overall financial performance.

HMT Ltd. Financial Statement Overview

Summary

HMT Ltd. is facing critical financial challenges. The income statement shows declining profitability and revenue volatility. The balance sheet reflects high leverage and negative equity, signaling financial distress. Cash flow is weak, with negative operating and free cash flows, indicating liquidity issues. These factors collectively suggest significant financial instability and potential risks in sustaining operations.

Income Statement

The income statement reveals significant challenges. Gross profit margins have declined over the years, and the company is experiencing substantial net losses, particularly in the latest year with a net loss of over 1.4 billion. EBIT and EBITDA margins are negative, indicating operating inefficiencies. Revenue has also shown volatility, with a notable decrease in recent years, highlighting potential issues in sustaining sales levels.

Balance Sheet

The balance sheet indicates a precarious financial position. The company has a negative stockholders' equity, which continued to worsen, reflecting financial instability. The debt-to-equity ratio is unreliable due to negative equity, but the high level of total debt relative to assets suggests significant leverage. The equity ratio is negative, reinforcing concerns about the company's financial solvency.

Cash Flow

Cash flow analysis shows severe cash management issues. Operating cash flow has been negative in most years, and free cash flow is consistently negative, pointing to challenges in generating cash from operations and covering capital expenditures. The free cash flow to net income ratio is not favorable, indicating operational cash flow does not align with income levels.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Mar 2022	Jun 2021
Income Statement
Total Revenue	1.42B	1.63B	2.04B	1.76B	2.04B
Gross Profit	633.80M	652.60M	622.10M	660.25M	800.32M
EBITDA	-629.40M	-566.71M	-386.55M	-609.69M	-145.53M
Net Income	-1.43B	25.51B	-1.23B	5.32B	-1.10B
Balance Sheet
Total Assets	5.26B	6.04B	6.96B	6.41B	6.83B
Cash, Cash Equivalents and Short-Term Investments	2.10B	2.47B	2.54B	1.36B	1.91B
Total Debt	10.29B	10.29B	37.64B	37.53B	37.48B
Total Liabilities	24.24B	23.56B	49.99B	48.21B	53.97B
Stockholders Equity	-18.98B	-17.52B	-43.03B	-41.80B	-47.14B
Cash Flow
Free Cash Flow	-486.20M	-8.51B	971.80M	-551.54M	-380.28M
Operating Cash Flow	-464.10M	-8.47B	1.03B	-504.35M	-359.60M
Investing Cash Flow	300.00M	-439.80M	-276.80M	445.11M	-186.63M
Financing Cash Flow	-74.50M	8.28B	35.90M	-74.29M	71.17M

HMT Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HMT, the sentiment is Positive. The current price of 48 is below the 20-day moving average (MA) of 48.07, above the 50-day MA of 46.64, and below the 200-day MA of 55.43, indicating a bullish trend. The MACD of 3.87 indicates Negative momentum. The RSI at 87.66 is Negative, neither overbought nor oversold. The STOCH value of 99.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HMT.

HMT Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESCORTS	72 Outperform	₹373.63B	16.17	―	0.75%	15.71%	101.96%
ACE	65 Neutral	₹103.15B	24.91	―	0.21%	4.95%	14.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VSTTILLERS	58 Neutral	₹48.71B	40.26	―	0.35%	21.88%	-20.20%
JISLDVREQS	54 Neutral	₹25.79B	85.22	―	―	5.79%	9.84%
HMT	40 Underperform	₹77.04B	-17.52	―	―	-22.76%	-106.03%
TIL	39 Underperform	₹14.20B	-128.62	―	―	80.70%	-100.87%

HMT Ltd. Corporate Events

HMT Limited Dissolves Wholly Owned Subsidiary HMT Watches

HMT Limited has formally announced the striking off and dissolution of its wholly owned subsidiary HMT Watches Limited, which has been removed from the Register of Companies under Section 248(2) of the Companies Act, 2013 with effect from March 2, 2026. The move follows an earlier application to the Ministry of Corporate Affairs and marks a regulatory closure of the legacy watch unit, signalling further streamlining of HMT’s corporate structure and a continued shift away from its traditional timepiece business.

The dissolution of HMT Watches Limited underscores the company’s ongoing restructuring efforts as it consolidates operations around more viable segments, potentially affecting how investors and stakeholders view the future direction of the former watch pioneer. By formally exiting the watches subsidiary, HMT appears to be aligning its portfolio with current market realities and paving the way for a sharper focus on core manufacturing and engineering activities.

HMT Files to Strike Off Wholly Owned Subsidiary HMT Watches Limited

HMT Limited has announced that, following earlier government approval for closure of three of its subsidiaries, it has now filed an application with the Ministry of Corporate Affairs to strike off its wholly owned unit HMT Watches Limited from the Registrar of Companies under the Companies Act, 2013. The move marks a further step in the government-backed restructuring of the state-owned engineering group, signalling continued consolidation of its legacy watch business and potential streamlining of operations, with implications for the group’s focus on core activities and capital allocation going forward.