HP Adhesives Ltd. (IN:HPAL)
:HPAL
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HP Adhesives Ltd.
(HPAL)
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Rating:51Neutral
Price Target:
₹37.00
▼(-13.37% Downside)
Action:Reiterated
Date:05/18/26
The score is held back primarily by deteriorating profitability and weak cash conversion (negative free cash flow), partially offset by a conservatively financed balance sheet. Technicals are mixed with a longer-term downtrend versus some short-term stabilization, and valuation appears demanding given the recent earnings and margin pressure.
Positive Factors
Diverse product portfolio & brand-led distribution
HP Adhesives' broad range of chemistries (PVA, cyanoacrylate, contact, hot-melt) and established brand/distributor reach create durable revenue diversification across woodworking, furniture and construction end-markets. This supports cross-selling, repeat purchases and resilience to single-product shocks over months.
Negative Factors
Weak cash generation and negative free cash flow
Negative free cash flow and weak OCF versus reported earnings reduce the firm's ability to self-fund capex, inventory and working-capital needs. Over a 2–6 month horizon this constrains reinvestment, distributor support and contingency buffers, raising reliance on external funding if stress persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Diverse product portfolio & brand-led distribution
HP Adhesives' broad range of chemistries (PVA, cyanoacrylate, contact, hot-melt) and established brand/distributor reach create durable revenue diversification across woodworking, furniture and construction end-markets. This supports cross-selling, repeat purchases and resilience to single-product shocks over months.
Read all positive factors
HP Adhesives Ltd. (HPAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.22B
Dividend Yield0.94%
Average Volume (3M)11.38K
Price to Earnings (P/E)69.1
Beta (1Y)1.55
Revenue Growth0.55%
EPS Growth-61.84%
CountryIN
Employees614
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.76
Shares Outstanding91,874,730
10 Day Avg. Volume4,812
30 Day Avg. Volume11,377
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)2.57
Price to Sales (P/S)1.93
P/FCF Ratio-98.04
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 makes money primarily by manufacturing (and in some cases sourcing) adhesive and adhesive-adjacent products and selling them to customers through a brand-and-distribution-led model. Revenue is generated from: (1) sale of adhesives acr...
HP Adhesives Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
82
Very Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.65B | 2.49B | 2.53B | 2.36B | 2.33B | 1.65B |
| Gross Profit | 875.92M | 495.97M | 938.45M | 864.78M | 647.41M | 399.77M |
| EBITDA | 277.72M | 130.84M | 305.98M | 331.69M | 205.61M | 141.27M |
| Net Income | 161.89M | 69.77M | 182.44M | 205.68M | 108.58M | 60.06M |
Balance Sheet | ||||||
| Total Assets | 2.32B | 2.32B | 2.28B | 1.98B | 1.85B | 1.95B |
| Cash, Cash Equivalents and Short-Term Investments | 411.31M | 304.28M | 293.79M | 302.80M | 29.40M | 490.79M |
| Total Debt | 21.30M | 42.33M | 77.03M | 31.64M | 85.28M | 185.59M |
| Total Liabilities | 435.67M | 443.68M | 437.95M | 289.17M | 363.64M | 580.80M |
| Stockholders Equity | 1.88B | 1.88B | 1.84B | 1.69B | 1.48B | 1.37B |
Cash Flow | ||||||
| Free Cash Flow | 84.00M | -49.14M | -40.88M | 63.31M | -210.54M | -276.09M |
| Operating Cash Flow | 109.70M | 79.23M | 99.39M | 227.84M | -50.47M | -102.12M |
| Investing Cash Flow | -48.18M | -29.24M | -91.06M | -151.44M | 75.44M | -293.44M |
| Financing Cash Flow | -68.48M | -72.47M | 15.25M | -72.43M | -123.24M | 864.05M |
HP Adhesives Ltd. Technical Analysis
Negative
42.71
Price Trends
35.43
Negative
37.48
Negative
42.18
Negative
Market Momentum
>-0.01
Positive
41.54
Neutral
8.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HPAL, the sentiment is Negative. The current price of 42.71 is above the 20-day moving average (MA) of 38.51, above the 50-day MA of 35.43, and above the 200-day MA of 42.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 8.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹5.84B | 20.65 | ― | 0.37% | 11.79% | 22.61% | |
62 Neutral | ₹2.43B | 11.13 | ― | 1.11% | -39.14% | -65.08% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | ₹2.23B | -45.38 | ― | ― | -2.07% | -51.16% | |
56 Neutral | ₹4.59B | 25.31 | ― | 0.82% | 3.24% | 6.11% | |
51 Neutral | ₹3.22B | 69.05 | ― | 0.94% | 0.55% | -61.84% | |
40 Underperform | ₹408.65M | -17.86 | ― | ― | -177.05% | -190.46% |
* Basic Materials Sector Average
IN:HPAL
HP Adhesives Ltd.
36.47
-13.93
-27.64%
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HP Adhesives Ltd. Corporate Events
HP Adhesives Promoters Declare No Encumbrance on Shares for FY 2026
May 4, 2026
HP Adhesives Limited has informed the stock exchange that, under the annual disclosure requirements of India’s takeover regulations, it has submitted a declaration regarding the shareholdings of key promoters. The filing, made on behalf of p...
HP Adhesives Promoters Report No Encumbrance on Shares for FY 2026
May 4, 2026
HP Adhesives Ltd. has reported that its promoters, promoter group, and persons acting in concert did not create any encumbrance on their equity shareholdings during the financial year ended March 31, 2026. The disclosure, made under Regulation 31(...
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...
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.