Hindprakash Industries Ltd. (HPIL) AI Stock Analysis

• Market Cap: ₹1.42B
• Dividend Yield: 0.37%
• Average Volume (3M): 1.55K
• Price to Earnings (P/E): 87.1
• Beta (1Y): 1.16
• Revenue Growth: 42.23%
• EPS Growth: -50.43%
• Country: IN
• Employees: 49
• Sector: Services
• Sector Strength: N/A
• Industry: Chemicals - Specialty
• EPS (TTM): 0.38
• Shares Outstanding: 11,424,110
• 10 Day Avg. Volume: 264
• 30 Day Avg. Volume: 1,554
• PEG Ratio: 0.00
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 1.43
• P/FCF Ratio: -25.92
• 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: 59 Neutral
• Price Target: ₹130.00 ▼(-5.11% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

The overall stock score is primarily influenced by stable financial performance and positive technical indicators. However, the high P/E ratio suggests overvaluation, which negatively impacts the score. Cash flow volatility and low dividend yield further contribute to a cautious outlook.

Positive Factors

Strong Revenue Growth

A ~36% reported revenue growth indicates the company is expanding underlying demand or market penetration. Sustained top-line expansion over multiple periods supports scale, capacity utilization and reinvestment potential, improving long-term business durability.

Robust Balance Sheet

A stable equity base with steadily rising shareholders' equity and only moderate leverage provides financial flexibility. That durability reduces refinancing risk, supports funding for capex or working capital, and cushions cyclical stresses over months.

Access to Financing

Despite recent negative free cash flow, consistent positive financing cash flow shows the company can secure external funding. Continued access to financing preserves operational continuity and supports investment while operating cash stabilizes.

Negative Factors

Cash-Flow Volatility

Marked swings in operating cash flow undermine self‑funding ability and raise liquidity risk. Volatility forces reliance on external financing, may restrict capex or working-capital strategies, and weakens resilience to shocks over the next several months.

Margins Under Pressure

A declining gross margin signals rising input or production costs or weaker pricing power. If cost pressures persist, margin erosion can compress operating cash generation and limit reinvestment, affecting profitability durability without corrective actions.

Declining EPS

A ~26% drop in reported EPS points to material earnings deterioration versus prior periods. Persistent EPS declines reduce retained earnings and shareholder returns potential, limiting financial flexibility and possibly constraining strategic investment choices.

Hindprakash Industries Ltd. Business Overview & Revenue Model

Company Description

Hindprakash Industries Limited manufactures and trades in dyes, auxiliaries, intermediates, and chemicals in India and internationally. The company offers acid, basic, and direct dyes. It also provides dyestuffs, such as disperse, as well as reactive, including bifunctional, vinyl sulphone, LX series, reactive high exhaust, and reactive hot brand dyes; dyes intermediates; dyeing and printing auxiliaries; pigments; textile chemicals and aux; water treatments solutions; and pharmaceuticals. The company was founded in 1942 and is based in Ahmedabad, India.

How the Company Makes Money

HPIL generates revenue through multiple streams, primarily by manufacturing and selling a diverse array of products across its core sectors. The company's revenue model is centered on the production of consumer and industrial goods, where it sells products directly to wholesalers, retailers, and end consumers. Key revenue streams include the sale of synthetic fibers for textile production, packaging solutions for various industries, and specialty chemicals utilized in different manufacturing processes. Additionally, HPIL has established significant partnerships with major brands and distributors, enhancing its market reach and driving sales. The company's focus on innovation and efficiency in production processes further contributes to its profitability by reducing costs and improving margins.

Hindprakash Industries Ltd. Financial Statement Overview

Summary

Hindprakash Industries Ltd. shows stable revenue growth and profitability, though margins are under pressure. The balance sheet is robust, but cash flow volatility poses risks if not addressed.

Income Statement

Hindprakash Industries Ltd. has shown moderate revenue growth over the past years, with a slight increase in total revenue from 2024 to 2025. The gross profit margin has decreased slightly, indicating potential cost pressures, while the net profit margin remains stable. EBIT and EBITDA margins are reasonable but show slight fluctuations, suggesting some variability in operational efficiency.

Balance Sheet

The company's balance sheet demonstrates a stable equity base with a steady increase in stockholders' equity over the years. The debt-to-equity ratio indicates moderate leverage, manageable within industry norms. However, the equity ratio has seen fluctuations, reflecting varying degrees of asset financing through equity.

Cash Flow

The cash flow statement reveals significant volatility in operating cash flows, with negative figures in 2025 compared to positive cash flows in 2024. Free cash flow has turned negative recently, suggesting potential liquidity challenges, though the company has managed to maintain positive financing cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.09B	1.02B	994.68M	1.01B	1.04B	899.66M
Gross Profit	97.88M	57.91M	65.21M	64.68M	64.83M	53.29M
EBITDA	54.60M	53.08M	51.87M	55.84M	49.01M	44.49M
Net Income	14.78M	16.44M	15.53M	24.65M	27.31M	24.07M
Balance Sheet
Total Assets	0.00	930.78M	846.95M	799.56M	563.89M	558.07M
Cash, Cash Equivalents and Short-Term Investments	34.74M	30.50M	5.58M	8.81M	1.71M	1.71M
Total Debt	0.00	301.56M	223.44M	214.05M	128.55M	147.37M
Total Liabilities	-516.85M	413.93M	345.12M	373.41M	173.73M	193.07M
Stockholders Equity	516.85M	516.85M	501.84M	426.14M	390.17M	365.00M
Cash Flow
Free Cash Flow	0.00	-56.13M	27.66M	31.11M	19.86M	-38.09M
Operating Cash Flow	0.00	-53.81M	32.44M	51.77M	25.85M	-24.49M
Investing Cash Flow	0.00	7.00M	-82.16M	-128.33M	5.28M	1.55M
Financing Cash Flow	0.00	76.69M	43.80M	82.75M	-31.11M	22.01M

Hindprakash Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 137.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HPIL, the sentiment is Negative. The current price of 137 is above the 20-day moving average (MA) of 128.84, above the 50-day MA of 132.76, and above the 200-day MA of 134.40, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 36.83 is Neutral, neither overbought nor oversold. The STOCH value of 41.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HPIL.

Hindprakash Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHEMBOND	66 Neutral	₹1.89B	34.22	―	1.11%	-37.34%	-45.55%
TAINWALCHM	63 Neutral	₹1.85B	13.34	―	1.64%	―	―
SIGIND	61 Neutral	₹1.33B	8.18	―	0.90%	5.93%	28.13%
HPIL	59 Neutral	₹1.42B	87.13	―	0.37%	42.23%	-50.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ALKALI	47 Neutral	₹626.22M	-14.73	―	0.62%	2.98%	38.45%
SEYAIND	40 Underperform	₹339.04M	-17.86	―	―	―	―