Huhtamaki India Limited (HUHTAMAKI) AI Stock Analysis

• Market Cap: ₹13.77B
• Dividend Yield: 0.95%
• Average Volume (3M): 69.22K
• Price to Earnings (P/E): 13.8
• 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): 4.90
• Shares Outstanding: 75,521,935
• 10 Day Avg. Volume: 176,293
• 30 Day Avg. Volume: 69,219
• PEG Ratio: -0.30
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 27.21
• 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: 66 Neutral
• Price Target: ₹194.00 ▼(-6.03% Downside)

Huhtamaki India Limited's overall stock score reflects a balance of resilient financial performance and fair valuation, tempered by mixed technical indicators. The company's improved profitability and leverage are positive, but inconsistent revenue growth and past cash flow fluctuations present challenges. Technical analysis suggests neutral momentum, while valuation metrics indicate the stock is fairly priced.

Positive Factors

Improved Return on Equity

A materially higher ROE in 2023 indicates the company is generating stronger returns on shareholders' capital. Sustained improvement in ROE supports reinvestment, dividend capacity and signals operational leverage; if maintained, it underpins long-term capital efficiency and investor confidence.

Lower Leverage

A meaningful reduction in debt ratio reduces financial risk and interest burden, improving flexibility for capex or working capital needs. Lower leverage enhances resilience through cyclical downturns and reduces refinancing risk, a durable strength for multi-quarter planning and strategic investments.

Improved Cash Generation

Stronger free cash flow and positive operating-cash-to-income metrics indicate better conversion of earnings into cash. Durable cash generation supports ongoing capex, working-capital cycles, debt servicing and shareholder returns, and improves the company's ability to self-fund growth without excessive external financing.

Negative Factors

Inconsistent Revenue Growth

Declining and inconsistent top-line growth undermines scale economics and makes long-term margin expansion harder. Persistent revenue volatility reduces predictability of free cash flow and constrains the firm's ability to invest in capacity or pricing power, weakening structural competitive positioning.

Volatile Profitability

Large swings in net margins, including occasional losses, point to exposure to input-cost volatility, pass-through limits, or operational inconsistencies. Persistent margin volatility hampers forecasting, increases capital allocation risk, and can deter long-term contracts or investment from conservative partners.

Elevated Liabilities

Despite leverage improvement, a high absolute liability base raises refinancing and liquidity risk, especially if cash generation weakens. Elevated liabilities can limit strategic optionality, increase interest sensitivity, and require disciplined cash management to avoid structural funding stress over multiple quarters.

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 generates revenue through multiple streams, primarily by selling its packaging products to various industries including food service, consumer goods, and healthcare. The company capitalizes on the increasing demand for sustainable and innovative packaging solutions, which allows it to command premium pricing. Key revenue streams include direct sales of flexible packaging, disposable food service products, and paper-based packaging solutions. Additionally, Huhtamaki benefits from strategic partnerships with major food and beverage brands, which provide consistent demand for its products. The company's focus on research and development also enables it to introduce new products that align with market trends, further enhancing its revenue potential.

Huhtamaki India Limited Financial Statement Overview

Summary

Huhtamaki India Limited demonstrates a resilient yet volatile financial performance. Strengths include improved profitability and leverage, but inconsistent revenue and profitability growth rates pose challenges. Recent improvements in cash flow are positive, though past fluctuations highlight the need for careful management.

Income Statement

The income statement shows mixed results. Gross Profit Margin remains relatively stable, with a decrease in Total Revenue observed over the recent years. The Net Profit Margin showed volatility, with significant profits in some years and a loss in 2021. Revenue growth is inconsistent, indicating challenges in maintaining a steady upward trajectory. EBIT and EBITDA margins have fluctuated, though there was a notable improvement in EBIT margin in 2023.

Balance Sheet

The balance sheet indicates moderate financial stability. The Debt-to-Equity ratio has improved as the company reduced its debt levels over recent years. Return on Equity (ROE) improved significantly in 2023, reflecting enhanced profitability. The Equity Ratio shows a healthy proportion of equity financing, indicating a solid financial base. However, liabilities remain high, posing potential risks if not managed effectively.

Cash Flow

Cash flow analysis reveals an improvement in Free Cash Flow in 2023, but with fluctuations over previous years. Operating Cash Flow to Net Income Ratio is generally positive, indicating good cash generation relative to net income, albeit with some volatility. Free Cash Flow to Net Income Ratio shows a mixed picture, reflecting variability in capital expenditures and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.73B	25.00B	25.49B	29.83B	26.25B	24.44B
Gross Profit	6.24B	2.46B	7.74B	7.50B	7.07B	2.86B
EBITDA	1.65B	1.82B	5.77B	1.75B	882.20M	2.42B
Net Income	744.90M	879.70M	4.10B	496.40M	-226.90M	959.90M
Balance Sheet
Total Assets	19.73B	19.37B	20.01B	17.51B	18.08B	15.83B
Cash, Cash Equivalents and Short-Term Investments	2.83B	3.27B	3.91B	426.50M	320.70M	854.60M
Total Debt	1.49B	1.49B	2.55B	4.10B	4.12B	2.95B
Total Liabilities	7.43B	7.44B	8.51B	9.94B	10.92B	8.18B
Stockholders Equity	12.30B	11.94B	11.50B	7.57B	7.16B	7.65B
Cash Flow
Free Cash Flow	0.00	759.40M	1.79B	361.60M	-1.07B	1.20B
Operating Cash Flow	0.00	1.42B	2.74B	1.33B	-276.70M	1.69B
Investing Cash Flow	0.00	-768.80M	398.00M	-895.80M	-558.50M	-726.80M
Financing Cash Flow	0.00	-1.61B	-2.11B	-315.80M	486.30M	-741.80M

Huhtamaki India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 206.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 188.76, above the 50-day MA of 203.13, and below the 200-day MA of 216.92, indicating a bearish trend. The MACD of -6.80 indicates Negative momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.35 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
TIMETECHNO	69 Neutral	₹88.90B	19.42	―	0.67%	7.53%	16.26%
HUHTAMAKI	66 Neutral	₹13.77B	13.83	―	0.95%	-1.59%	-75.34%
COSMOFIRST	63 Neutral	₹15.27B	10.28	―	0.59%	16.61%	41.90%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TCPLPACK	61 Neutral	₹23.65B	18.65	―	1.00%	9.49%	9.69%
UFLEX	61 Neutral	₹33.26B	8.52	―	0.62%	7.44%	―
MOLDTKPAC	59 Neutral	₹18.01B	26.57	―	0.67%	15.51%	7.88%