Huhtamaki India Limited (HUHTAMAKI) AI Stock Analysis

• Market Cap: ₹12.30B
• Dividend Yield: 0.95%
• Average Volume (3M): 69.22K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.21
• Revenue Growth: -1.59%
• EPS Growth: -75.34%
• Country: IN
• Employees: 2,500
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaging & Containers
• EPS (TTM): 4.00
• Shares Outstanding: 75,521,935
• 10 Day Avg. Volume: 176,293
• 30 Day Avg. Volume: 69,219
• PEG Ratio: 0.39
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 8.77
• 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): 18.3
• Revenue Forecast (FY): ₹26.32B

• Rating: 64 Neutral
• Price Target: ₹174.00 ▼(-15.72% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid underlying financial health (low leverage, improved profitability and cash flow), tempered by uneven earnings/cash consistency and a recent revenue decline. Technicals are a secondary drag with the stock trading below key longer-term moving averages and negative MACD, while valuation looks fair but not strongly supportive given the modest dividend yield.

Positive Factors

Conservative Balance Sheet

Very low leverage (≈0.11x) gives the company durable financial flexibility to fund working capital, capex or M&A without needing costly external financing. This buffer helps absorb raw-material shocks and supports long-term operational resilience.

Improved Cash Generation

Stronger operating and free cash flow in 2025 increases internal funding capacity for reinvestment, maintenance capex and shareholder distributions. Sustained cash generation reduces reliance on debt and supports steady execution of strategic initiatives over months.

Exposure to Resilient End Markets

Serving stable FMCG categories provides steady underlying demand for packaging solutions. End-market diversity across food, personal and home care reduces cyclicality risk and supports predictable order flow and pricing passthrough over the medium term.

Negative Factors

Declining Revenues

Consecutive annual revenue declines signal waning demand or share loss, reducing operating leverage and making margin gains harder to sustain. Without clear revenue stabilization, capacity utilization and long-term margin recovery remain at risk.

Volatile Cash Conversion

Intermittent negative operating and free cash flow across the cycle indicates working-capital and capex volatility. This unpredictability complicates planning, stresses liquidity in downturns, and can force trade-offs between growth investments and balance-sheet repair.

Modest Return on Equity

ROE around 9% is modest for a manufacturing supplier to FMCG brands and suggests limited capital efficiency absent stronger revenue or margin trends. Sustained modest returns may constrain reinvestment upside and limit shareholder return potential.

Huhtamaki India Limited Business Overview & Revenue Model

Company Description

Huhtamaki India Limited engages in the manufacture and sale of consumer packaging and labelling materials in India. The company provides barrier, recyclable, shaped, stand-up, retort, single-serve, pocket shot, panel, and shaped spouted pouches; roll-form, cold seal, foil-based, barrier roll form, wrap-around, wet strength and pressure sensitive, and metallised paper labels; seal packs, sachets, twist wraps, flow wraps, shrink sleeves, and thermoforms; and microwaveable and retort lidding solutions for food and beverage packaging. It also offers cold form and extrusion laminates, tube laminates, bulk bags, multi-layered PS labels, and sterile and specialised pouches for healthcare sector; high barrier laminates and standup zipper pouches for pet food market; and flexible packaging solutions for personal and home care, agro, battery, industrial, and other non-food markets. In addition, the company offers promotions and security solutions, such as point of-sale banners, tattoos, sticker in laminate, registered holograms, and camouflage impressions; digital printing solutions; specialised pouching solutions; and engraved cylinders. Further, it exports its products. The company was formerly known as Huhtamaki PPL Limited and changed its name to Huhtamaki India Limited in November 2020. Huhtamaki India Limited was founded in 1935 and is based in Bandra, India. Huhtamaki India Limited is a subsidiary of Huhtavefa B.V.

How the Company Makes Money

Huhtamaki India Limited makes money primarily by manufacturing and selling packaging products to brand owners and converters, earning revenue on a per-order or per-unit basis under customer purchase orders and supply arrangements. Its core revenue stream comes from flexible packaging (e.g., printed laminates, pouches, and other multi-layer packaging structures) and specialty packaging formats, where pricing typically reflects raw-material inputs (such as films, paper/board, and inks), conversion/printing complexity, order volumes, and service levels (lead times, quality specifications, compliance requirements). The company’s earnings are influenced by (i) demand from packaged-goods categories (especially food and beverage and personal/home care), (ii) its ability to pass through or manage volatility in raw-material costs and foreign-exchange impacts on imported inputs, and (iii) operating efficiency and scale in printing and converting operations. Information on specific customer contracts, named strategic partnerships, or segment-by-segment revenue splits is null.

Huhtamaki India Limited Financial Statement Overview

Summary

Financials are supported by a conservative balance sheet (very low debt-to-equity ~0.11x) and improving ROE (~9% in 2025). Profitability and free cash flow improved in 2025, but earnings and cash generation have been volatile across years, and revenue declined in both 2024 and 2025, reducing confidence in durability.

Income Statement

Profitability has improved meaningfully versus the 2021 loss, with net margin rising to ~4.9% in 2025 from ~3.5% in 2024, and operating profitability also moving higher. However, results have been volatile over the cycle (notably very strong profitability in 2023 followed by a sharp step-down), and top-line momentum is soft with revenue declining in both 2024 and 2025, which limits the quality of the earnings recovery.

Balance Sheet

Leverage looks conservative with low debt relative to equity (about 0.11x in 2025), a sizable equity base, and a clear improvement from the more levered position seen earlier in the period. Returns on equity are positive and improving (roughly 9% in 2025 vs ~7% in 2024), though they remain well below the unusually elevated 2023 level, suggesting profitability is not yet consistently high.

Cash Flow

Cash generation strengthened in 2025, with solid operating cash flow and healthy free cash flow that improved versus 2024, indicating better underlying cash profitability. That said, cash conversion is not consistently strong across years (including negative operating and free cash flow in 2021 and a sharp free-cash-flow drop in 2024), pointing to working-capital/capex volatility and a less steady cash profile than the balance sheet suggests.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.73B	23.89B	25.00B	25.49B	29.83B	26.25B
Gross Profit	6.24B	7.59B	2.46B	7.74B	7.50B	7.07B
EBITDA	1.65B	2.27B	1.82B	5.77B	1.75B	882.20M
Net Income	744.90M	1.18B	879.70M	4.10B	496.40M	-226.90M
Balance Sheet
Total Assets	19.73B	20.04B	19.37B	20.01B	17.51B	18.08B
Cash, Cash Equivalents and Short-Term Investments	2.83B	4.99B	3.27B	3.91B	426.50M	320.70M
Total Debt	1.49B	1.44B	1.49B	2.55B	4.10B	4.12B
Total Liabilities	7.43B	7.11B	7.44B	8.51B	9.94B	10.92B
Stockholders Equity	12.30B	12.94B	11.94B	11.50B	7.57B	7.16B
Cash Flow
Free Cash Flow	0.00	1.82B	759.40M	1.79B	361.60M	-1.07B
Operating Cash Flow	0.00	2.38B	1.42B	2.74B	1.33B	-276.70M
Investing Cash Flow	0.00	-1.56B	-768.80M	398.00M	-895.80M	-558.50M
Financing Cash Flow	0.00	-357.50M	-1.61B	-2.11B	-315.80M	486.30M

Huhtamaki India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 206.45
• 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:HUHTAMAKI, the sentiment is Negative. The current price of 206.45 is above the 20-day moving average (MA) of 170.13, above the 50-day MA of 180.75, and below the 200-day MA of 213.52, indicating a bearish trend. The MACD of -6.03 indicates Positive momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 36.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HUHTAMAKI.

Huhtamaki India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCPLPACK	69 Neutral	₹21.36B	27.34	―	1.00%	9.49%	9.69%
TIMETECHNO	69 Neutral	₹80.17B	17.09	―	0.67%	7.53%	16.26%
HUHTAMAKI	64 Neutral	₹12.30B	13.53	―	0.95%	-1.59%	-75.34%
UFLEX	64 Neutral	₹31.34B	25.06	―	0.62%	7.44%	―
COSMOFIRST	63 Neutral	₹16.43B	15.04	―	0.59%	16.61%	41.90%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MOLDTKPAC	59 Neutral	₹17.04B	35.49	―	0.67%	15.51%	7.88%

Huhtamaki India Limited Corporate Events

Huhtamaki India Gets Tax Demand Notice for Alleged Delay at Bengaluru Plants

Huhtamaki India Limited has disclosed that the Town Municipal Council of Jigani in Bengaluru has issued a demand notice alleging delayed payment of property tax for its Bengaluru plants for the period from 2014 to 2025. The notice, received on February 20, 2026, seeks payment of property tax, cess, and a penalty tied to this alleged delay.

The company reported that the total penalty demanded for delayed property tax payment amounts to Rs. 1,06,70,038 and stated that, apart from this financial outflow, there is no material impact on its financial or operational activities. Huhtamaki India is currently reviewing the demand and evaluating its options to challenge or appeal the penalty, indicating a potential dispute process with local authorities but limited immediate operational risk for stakeholders.