Hindustan Composites Limited (HINDCOMPOS) AI Stock Analysis

• Market Cap: ₹6.72B
• Dividend Yield: 0.44%
• Average Volume (3M): 919.00
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.11
• Revenue Growth: 11.99%
• EPS Growth: 2.27%
• Country: IN
• Employees: 556
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Auto - Parts
• EPS (TTM): 5.05
• Shares Outstanding: 14,769,000
• 10 Day Avg. Volume: 888
• 30 Day Avg. Volume: 919
• 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: ₹512.00
• Price Target Upside: 12.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ₹512.00 ▲(12.52% Upside)

Hindustan Composites Limited has a strong financial foundation with robust revenue growth and a solid balance sheet, which are the most significant factors in its score. Technical analysis indicates a neutral to slightly bearish trend, and valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events means these factors do not influence the score.

Hindustan Composites Limited Business Overview & Revenue Model

Company Description

Hindustan Composites Limited develops, manufactures, and markets fiber-based friction materials in India. The company's friction materials include automotive brake linings, automotive and industrial roll linings, automotive clutch facings and ceramic buttons, automotive disc brake pads, railway brake blocks, and friction sheets. It also provides industrial thrust bearing and insulation products comprising millboard sheets, millboard discs, compestos, and compestos rings. The company serves various industries, such as automotive, railways, engineering, mining, aerospace, steel, chemical, oil exploration, etc. Hindustan Composites Limited was incorporated in 1964 and is based in Mumbai, India.

How the Company Makes Money

Hindustan Composites Limited generates revenue through the manufacturing and sale of friction materials and composite products. The company's key revenue streams include the automotive sector, where it supplies brake linings and clutch facings to original equipment manufacturers (OEMs) and the aftermarket. Additionally, the company serves the railways sector, providing specialized components for train braking systems. The industrial sector also contributes to its income, as Hindustan Composites supplies various industries with essential friction solutions. Significant partnerships with automotive giants and consistent demand for high-performance braking products are critical factors contributing to the company's earnings.

Hindustan Composites Limited Financial Statement Overview

Summary

Hindustan Composites Limited demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is particularly strong, characterized by low leverage and high equity. While cash flow generation is positive, there are signs of potential efficiency challenges in cash flow conversion from earnings.

Income Statement

Hindustan Composites Limited shows a strong performance in revenue growth, with a notable increase from 2020 to 2025. The gross profit margin has been consistently high, indicating strong pricing power and cost management. Net profit margin is solid, reflecting effective operational efficiency. However, the EBIT margin decreased in 2025, which could indicate rising operational costs or decreased efficiency.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio indicating limited leverage and strong equity financing. The equity ratio is high, showing a strong equity base relative to total assets. Return on equity is healthy, suggesting effective use of equity capital. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flows from operations show variability, but free cash flow is positive and growing, indicating good cash generation capability. However, the operating cash flow to net income ratio declined in 2025, which might signal efficiency issues in converting income to cash. The free cash flow to net income ratio also suggests room for improvement in cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	3.25B	3.25B	2.98B	2.83B	1.85B	2.32B
Gross Profit	1.69B	1.82B	1.41B	1.49B	1.09B	1.09B
EBITDA	589.33M	551.20M	522.16M	414.52M	338.56M	333.56M
Net Income	350.00M	350.00M	344.12M	274.70M	197.24M	216.02M
Balance Sheet
Total Assets	11.96B	11.96B	10.81B	10.00B	9.18B	10.02B
Cash, Cash Equivalents and Short-Term Investments	489.70M	489.70M	403.06M	481.00M	487.70M	407.54M
Total Debt	300.00K	300.00K	1.15M	10.10M	400.00K	3.03M
Total Liabilities	1.12B	1.12B	943.44M	791.10M	1.01B	851.23M
Stockholders Equity	10.85B	10.85B	9.87B	9.21B	8.17B	9.17B
Cash Flow
Free Cash Flow	0.00	91.70M	38.16M	86.30M	52.50M	-22.10M
Operating Cash Flow	0.00	298.60M	402.68M	157.00M	91.70M	49.13M
Investing Cash Flow	0.00	-179.10M	-348.64M	-210.10M	1.80M	47.99M
Financing Cash Flow	0.00	-31.20M	-39.36M	-23.80M	-85.80M	-30.72M

Hindustan Composites Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 455.05
• 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:HINDCOMPOS, the sentiment is Negative. The current price of 455.05 is below the 20-day moving average (MA) of 473.13, below the 50-day MA of 475.42, and below the 200-day MA of 471.88, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 21.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HINDCOMPOS.

Hindustan Composites Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HINDCOMPOS	68 Neutral	₹6.72B	20.63	―	0.44%	11.99%	2.27%
MENONBE	68 Neutral	7.17B	26.37	15.73%	1.56%	16.53%	17.20%
MUNJALAU	67 Neutral	10.38B	25.62	8.75%	0.96%	8.73%	0.25%
SUNDRMBRAK	56 Neutral	2.97B	94.37	5.21%	0.20%	5.14%	-61.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Hindustan Composites Limited Corporate Events

Hindustan Composites Announces Virtual AGM and Dividend Plans

Hindustan Composites Limited has announced that its 61st Annual General Meeting (AGM) will be held on September 25, 2025, through video conferencing and other audio-visual means, in compliance with SEBI regulations and the Companies Act, 2013. The company will send the AGM notice and annual report electronically to registered shareholders and has requested members to update their email addresses. The AGM will address the approval of the final dividend for the financial year ending March 31, 2025, with tax implications as per the Income Tax Act, 1961. This move reflects the company’s adaptation to digital communication methods and regulatory compliance, potentially impacting shareholder engagement and dividend distribution processes.

Hindustan Composites Limited Announces Board Meeting Outcomes and Dividend Timeline

Hindustan Composites Limited announced key outcomes from its Board meeting held on August 8, 2025. The Board approved the unaudited financial results for the quarter ending June 30, 2025, and recommended the appointment of M/s. MR & Associates as Secretarial Auditors for five years. Additionally, Mr. Vimal KiritKumar Desai was appointed as Senior Management Personnel. The company also mentioned the timeline for dividend payment, pending approval at the upcoming Annual General Meeting.