HMT Ltd. (HMT) AI Stock Analysis

• Market Cap: ₹71.04B
• Dividend Yield: N/A
• Average Volume (3M): 7.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• 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: 47 Neutral
• Price Target: ₹58.00 ▲(20.83% Upside)
• Action: Upgraded Date: 03/06/26
• Date: Action: Upgraded 03/06/26

The score is primarily constrained by very weak financial performance (losses, negative equity, and negative operating/free cash flow), which signals elevated solvency and liquidity risk. Technicals are supportive in the short term with strong trend strength, but extremely overbought momentum increases pullback risk. Valuation is also pressured because earnings are negative and dividend yield data is unavailable.

Positive Factors

State ownership / implicit support

As an Indian state-owned enterprise, HMT benefits from potential policy priority, easier access to public procurement and strategic industrial programs. This structural backing can sustain operations, provide financing or contracts, and preserve manufacturing capability over the medium term.

Legacy manufacturing capabilities

Longstanding expertise in machine tools and related engineering signals deep technical know-how, established production processes and supplier relationships. These durable capabilities enable product diversification, aftermarket services and potential re‑scaling of manufacturing activities over months to years.

Exposure to agricultural machinery sector

Operating in agricultural machinery provides structural demand drivers from mechanization and farm productivity initiatives. This industry exposure can offer steady, policy‑driven orders and longer sales cycles that support revenue recovery if operational and product execution issues are addressed.

Negative Factors

Negative shareholders' equity

Negative shareholders' equity indicates accumulated losses have eroded net worth, limiting the firm's ability to absorb shocks or raise equity. Over a 2–6 month horizon this materially increases insolvency risk, constrains access to market financing and narrows strategic options for restructuring or investment.

Consistently negative operating and free cash flow

Persistent negative operating and free cash flow show the company cannot internally fund working capital or capex, forcing reliance on external support. This structural cash generation weakness undermines long‑term viability and increases refinancing and liquidity risk absent sustained external capital or operational turnaround.

Large net losses and margin deterioration

Substantial and worsening net losses, shrinking gross margins and negative operating margins signal deep operational inefficiencies and weak revenue economics. Over months these trends erode recovery capacity, reduce reinvestment ability and make returning to sustainable profitability difficult without major structural changes.

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

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HMT Ltd. Financial Statement Overview

Summary

Financials indicate severe stress: large and worsening net losses with negative EBIT/EBITDA margins, revenue volatility, negative shareholders’ equity signaling solvency risk, and persistently negative operating and free cash flow indicating liquidity pressure.

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	TTM	Jun 2025	Jun 2024	Jun 2023	Mar 2022	Jun 2021
Income Statement
Total Revenue	1.19B	1.42B	1.63B	2.04B	1.76B	2.04B
Gross Profit	347.60M	633.80M	652.60M	622.10M	660.25M	800.32M
EBITDA	-743.20M	-629.40M	-566.71M	-386.55M	-609.69M	-145.53M
Net Income	-1.54B	-1.43B	25.51B	-1.23B	5.32B	-1.10B
Balance Sheet
Total Assets	5.21B	5.26B	6.04B	6.96B	6.41B	6.83B
Cash, Cash Equivalents and Short-Term Investments	2.22B	2.10B	2.47B	2.54B	1.36B	1.91B
Total Debt	10.29B	10.29B	10.29B	37.64B	37.53B	37.48B
Total Liabilities	24.87B	24.24B	23.56B	49.99B	48.21B	53.97B
Stockholders Equity	-19.66B	-18.98B	-17.52B	-43.03B	-41.80B	-47.14B
Cash Flow
Free Cash Flow	81.50M	-486.20M	-8.51B	971.80M	-551.54M	-380.28M
Operating Cash Flow	81.50M	-464.10M	-8.47B	1.03B	-504.35M	-359.60M
Investing Cash Flow	-53.80M	300.00M	-439.80M	-276.80M	445.11M	-186.63M
Financing Cash Flow	-32.70M	-74.50M	8.28B	35.90M	-74.29M	71.17M

HMT Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HMT, the sentiment is Neutral. The current price of 48 is below the 20-day moving average (MA) of 60.16, below the 50-day MA of 50.53, and below the 200-day MA of 55.97, indicating a neutral trend. The MACD of 2.98 indicates Positive momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹338.16B	28.55	―	0.75%	15.71%	101.96%
ACE	65 Neutral	₹98.72B	24.20	―	0.21%	4.95%	14.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VSTTILLERS	58 Neutral	₹45.29B	44.47	―	0.35%	21.88%	-20.20%
JISLDVREQS	53 Neutral	₹22.12B	-12.27	―	―	5.79%	9.84%
HMT	47 Neutral	₹71.04B	-15.27	―	―	-22.76%	-106.03%
TIL	39 Underperform	₹12.50B	-65.93	―	―	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.