HP Adhesives Ltd. (HPAL) AI Stock Analysis

• Market Cap: ₹4.19B
• Dividend Yield: 0.66%
• Average Volume (3M): 12.30K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.17
• Revenue Growth: 8.99%
• EPS Growth: -22.45%
• Country: IN
• Employees: 614
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 0.46
• Shares Outstanding: 91,874,730
• 10 Day Avg. Volume: 7,506
• 30 Day Avg. Volume: 12,302
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹54.00
• Price Target Upside: 18.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹54.00 ▲(18.34% Upside)

HP Adhesives Ltd. scores a 61, primarily influenced by its solid financial performance, despite concerns over cash flow management. Technical analysis provides mixed signals, indicating a cautious market sentiment. The valuation suggests the stock is fairly priced, with a moderate P/E ratio and a low dividend yield. The absence of earnings call insights and notable corporate events leaves the focus predominantly on financial and technical factors.

HP Adhesives Ltd. Business Overview & Revenue Model

Company Description

HP Adhesives Ltd. (HPAL) is a prominent player in the adhesives industry, specializing in the manufacture and distribution of a wide array of adhesive products. The company caters to various sectors, including construction, woodworking, footwear, automotive, and packaging. HPAL is known for its high-quality adhesive solutions that are designed to meet the diverse needs of its customers, offering products such as synthetic rubber adhesives, water-based adhesives, and other specialty adhesives.

How the Company Makes Money

HP Adhesives Ltd. generates revenue primarily through the sale of its adhesive products to a diverse customer base across multiple industries. The company's revenue streams include direct sales to manufacturers in sectors like construction, woodworking, and automotive, as well as distribution through a network of wholesalers and retailers. A significant portion of HPAL's earnings comes from its ability to innovate and offer specialized adhesive solutions that cater to specific industry needs. Additionally, strategic partnerships and collaborations with other companies and research institutions play a vital role in enhancing product offerings and expanding market reach, thereby contributing to HPAL's overall profitability.

HP Adhesives Ltd. Financial Statement Overview

Summary

HP Adhesives Ltd. shows a solid growth trajectory with increasing revenues and improved gross profit margins. The balance sheet is strengthening with increased equity and better leverage positions, yet rising liabilities warrant caution. Cash flow management remains a concern, with recent declines in free cash flow and operating cash flow raising red flags. While the company's financial health is largely positive, there are areas of potential risk that need addressing to ensure long-term financial stability.

Income Statement

HP Adhesives Ltd. demonstrates strong revenue growth momentum with a notable increase in total revenue from 2020 to 2025. Gross profit and net profit margins have shown improvement, with the gross profit margin increasing from 32.24% in 2020 to 37.12% in 2025, indicating enhanced cost management. However, the net profit margin has seen a slight decline in 2025 compared to 2024, reflecting potential challenges in maintaining profitability. Overall, the income statement reflects positive growth trends, but there are signals of potential profitability pressure.

Balance Sheet

HP Adhesives Ltd.'s balance sheet indicates robust growth in stockholders' equity, which has risen significantly from 2020 to 2025, showcasing financial stability. The debt-to-equity ratio has improved over the years, reflecting better leverage management, although total liabilities have increased. The equity ratio remains strong, highlighting a solid foundation of equity financing. Despite these strengths, the increase in liabilities could pose future risks if not managed effectively.

Cash Flow

The cash flow statement of HP Adhesives Ltd. reveals fluctuations in free cash flow, with negative free cash flow in 2025 after a positive figure in 2024. Operating cash flow has decreased substantially from 2024 to 2025, raising concerns about cash generation capabilities. While the company has managed capital expenditures, consistent negative free cash flow in recent years suggests challenges in sustainable cash generation. The operating cash flow to net income ratio indicates that cash generation might not be keeping pace with reported earnings.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.53B	2.53B	2.33B	2.36B	1.65B	1.18B
Gross Profit	851.20M	938.45M	647.41M	864.78M	399.77M	342.42M
EBITDA	289.95M	305.98M	205.61M	331.69M	141.27M	176.15M
Net Income	182.44M	182.44M	108.58M	205.68M	60.06M	100.60M
Balance Sheet
Total Assets	2.28B	2.28B	1.85B	1.98B	1.95B	897.79M
Cash, Cash Equivalents and Short-Term Investments	293.79M	293.79M	13.96M	302.80M	479.27M	12.32M
Total Debt	77.03M	77.03M	85.28M	31.64M	185.59M	425.92M
Total Liabilities	437.95M	437.95M	363.64M	289.17M	580.80M	771.20M
Stockholders Equity	1.84B	1.84B	1.48B	1.69B	1.37B	126.59M
Cash Flow
Free Cash Flow	0.00	-40.88M	-210.54M	63.31M	-276.09M	51.26M
Operating Cash Flow	0.00	99.39M	-50.47M	227.84M	-102.12M	215.29M
Investing Cash Flow	0.00	-91.06M	75.44M	-151.44M	-293.44M	-162.27M
Financing Cash Flow	0.00	15.25M	-123.24M	-72.43M	864.05M	-52.28M

HP Adhesives Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 45.63 is below the 20-day moving average (MA) of 46.46, below the 50-day MA of 48.94, and below the 200-day MA of 58.47, indicating a bearish trend. The MACD of -0.93 indicates Negative momentum. The RSI at 29.70 is Positive, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PREMIERPOL	64 Neutral	₹5.04B	19.31		0.32%	3.49%	20.19%
CHEMBOND	62 Neutral	₹2.52B	7.65		0.93%	-21.38%	-24.50%
DICIND	62 Neutral	₹5.33B	33.12		0.67%	1.60%	―
Sector *	62 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
HPAL	61 Neutral	₹4.19B	24.96		0.66%	8.99%	-22.45%
SEYAIND	―	₹449.04M	―		―	―	―
VIKASECO	59 Neutral	₹3.68B	34.61		―	25.88%	-44.91%