HP Adhesives Ltd. (IN:HPAL)
:HPAL
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HP Adhesives Ltd.
(HPAL)
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Rating:58Neutral
Price Target:
₹30.00
▼(-29.76% Downside)
Action:ReiteratedDate:04/02/26
The score is driven mainly by mixed fundamentals: solid revenue/margin and balance sheet progress are tempered by deteriorating cash flows. Technicals further weigh on the outlook due to a pronounced downtrend and weak momentum, and valuation remains demanding with a high P/E and only modest dividend support.
Positive Factors
Revenue Growth
Sustained revenue growth from 2020–2025 signals durable demand across woodworking, furniture and construction end markets. Persistent top-line expansion supports scale, deeper distribution penetration and the capacity to fund product development or channel expansion over the next 2–6 months and beyond.
Negative Factors
Weak Cash Generation
A swing to negative free cash flow and sharply lower operating cash flow undermines the company’s ability to self-fund capex, working capital and shareholder returns. If cash generation does not stabilize, the company may need external financing, eroding margins and constraining strategic options over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained revenue growth from 2020–2025 signals durable demand across woodworking, furniture and construction end markets. Persistent top-line expansion supports scale, deeper distribution penetration and the capacity to fund product development or channel expansion over the next 2–6 months and beyond.
Read all positive factors
HP Adhesives Ltd. (HPAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.25B
Dividend Yield0.94%
Average Volume (3M)11.38K
Price to Earnings (P/E)58.3
Beta (1Y)1.26
Revenue Growth13.33%
EPS Growth-21.39%
CountryIN
Employees614
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.18
Shares Outstanding91,874,730
10 Day Avg. Volume4,812
30 Day Avg. Volume11,377
Financial Highlights & Ratios
PEG Ratio-2.31
Price to Book (P/B)2.55
Price to Sales (P/S)1.86
P/FCF Ratio-114.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
HP Adhesives Ltd. Business Overview & Revenue Model
Company Description
HP Adhesives Limited manufactures and markets consumer adhesives and sealants products in India. Its products include PVC, cPVC and uPVC, solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, ...
How the Company Makes Money
HP Adhesives Ltd. primarily makes money by selling adhesive and sealant products under its brand portfolio to customers in woodworking and furniture, interior and building fit-out, and construction-linked end markets. Revenue is generated from (1)...
HP Adhesives Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
68
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.65B | 2.53B | 2.36B | 2.33B | 1.65B | 1.18B |
| Gross Profit | 875.92M | 938.45M | 864.78M | 647.41M | 399.77M | 342.42M |
| EBITDA | 277.72M | 305.98M | 331.69M | 205.61M | 141.27M | 176.15M |
| Net Income | 161.89M | 182.44M | 205.68M | 108.58M | 60.06M | 100.60M |
Balance Sheet | ||||||
| Total Assets | 2.32B | 2.28B | 1.98B | 1.85B | 1.95B | 897.79M |
| Cash, Cash Equivalents and Short-Term Investments | 411.31M | 293.79M | 302.80M | 29.40M | 490.79M | 12.32M |
| Total Debt | 21.30M | 77.03M | 31.64M | 85.28M | 185.59M | 425.92M |
| Total Liabilities | 435.67M | 437.95M | 289.17M | 363.64M | 580.80M | 771.20M |
| Stockholders Equity | 1.88B | 1.84B | 1.69B | 1.48B | 1.37B | 126.59M |
Cash Flow | ||||||
| Free Cash Flow | 84.00M | -40.88M | 63.31M | -210.54M | -276.09M | 51.26M |
| Operating Cash Flow | 109.70M | 99.39M | 227.84M | -50.47M | -102.12M | 215.29M |
| Investing Cash Flow | -48.18M | -91.06M | -151.44M | 75.44M | -293.44M | -162.27M |
| Financing Cash Flow | -68.48M | 15.25M | -72.43M | -123.24M | 864.05M | 50.41M |
HP Adhesives Ltd. Technical Analysis
Neutral
42.71
Price Trends
35.37
Positive
39.35
Negative
43.88
Negative
Market Momentum
-0.86
Negative
59.05
Neutral
92.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HPAL, the sentiment is Neutral. The current price of 42.71 is above the 20-day moving average (MA) of 31.40, above the 50-day MA of 35.37, and below the 200-day MA of 43.88, indicating a neutral trend. The MACD of -0.86 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 92.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HPAL.
HP Adhesives Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹6.17B | 11.68 | ― | 0.37% | 3.39% | 6.48% | |
62 Neutral | ₹1.92B | 34.22 | ― | 1.11% | -37.34% | -45.55% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | ₹3.25B | 58.29 | ― | 0.94% | 13.33% | -21.39% | |
58 Neutral | ₹2.64B | -45.38 | ― | ― | 7.61% | -50.76% | |
56 Neutral | ₹4.74B | 25.63 | ― | 0.82% | 1.34% | 283.51% | |
40 Underperform | ₹293.07M | -17.86 | ― | ― | ― | ― |
* Basic Materials Sector Average
IN:HPAL
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HP Adhesives Ltd. Corporate Events
HP Adhesives shareholders clear appointment of new independent director via postal ballot
Apr 1, 2026
HP Adhesives Ltd. has secured shareholder approval via postal ballot for the appointment of Dr. Chandra Sekhar Nettem as a non-executive independent director. The resolution, classified as a special resolution under Indian company law and SEBI reg...
HP Adhesives Reports Fire at Maharashtra Manufacturing Unit; No Casualties, Insurance in Place
Jan 18, 2026
HP Adhesives Limited has reported a fire incident at one of its manufacturing units located in Narangi village, Khalapur taluka, Raigad district, Maharashtra, which occurred on the evening of 17 January 2026. While the cause of the fire is under i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.