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Hindustan Composites Limited
(HINDCOMPOS)
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Rating:69Neutral
Price Target:
₹430.00
▼(-5.18% Downside)
Action:Downgraded
Date:07/02/26
The score is driven primarily by solid financial strength, led by a conservatively financed balance sheet, offset by inconsistent free cash flow and some recent margin pressure. Technicals are mixed (price above key averages but negative MACD and subdued momentum), and valuation is reasonable but not especially compelling given the low dividend yield.
Positive Factors
Conservative balance sheet
Minimal leverage reduces financial risk and interest-related pressure, giving the company greater resilience during weaker industrial cycles. Rising equity also strengthens its funding base, supporting continued operations and selective investment without relying heavily on external borrowing.
Negative Factors
Inconsistent free cash flow
Intermittent negative free cash flow can reduce the cash available for expansion, shareholder returns, or unforeseen needs even when accounting profits remain positive. Repeated periods of weak conversion may reflect reinvestment or working-capital swings that limit financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Minimal leverage reduces financial risk and interest-related pressure, giving the company greater resilience during weaker industrial cycles. Rising equity also strengthens its funding base, supporting continued operations and selective investment without relying heavily on external borrowing.
Read all positive factors
Hindustan Composites Limited (HINDCOMPOS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.80B
Dividend Yield0.51%
Average Volume (3M)372.00
Price to Earnings (P/E)17.9
Beta (1Y)1.33
Revenue Growth-8.04%
EPS Growth-4.32%
CountryIN
Employees544
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)21.90
Shares Outstanding14,769,000
10 Day Avg. Volume531
30 Day Avg. Volume372
Financial Highlights & Ratios
PEG Ratio-1.49
Price to Book (P/B)0.45
Price to Sales (P/S)1.37
P/FCF Ratio-362.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hindustan Composites Limited Business Overview & Revenue Model
Company Description
Established in 1964 and headquartered in Mumbai, India, Hindustan Composites Limited specializes in the development, manufacturing, and distribution of fiber-based friction materials throughout the country. Their comprehensive product line of fric...
How the Company Makes Money
Hindustan Composites Limited primarily makes money by manufacturing and selling composite-based engineered products, with revenue driven by (1) friction materials and components supplied for braking and clutch applications and (2) gasketing/sealin...
Hindustan Composites Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
88
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.08B | 3.75B | 3.25B | 2.98B | 2.83B | 2.32B |
| Gross Profit | 1.13B | 1.38B | 1.82B | 630.91M | 1.49B | 1.09B |
| EBITDA | 447.40M | 529.50M | 551.20M | 522.16M | 414.52M | 333.56M |
| Net Income | 323.30M | 311.10M | 350.00M | 344.12M | 274.70M | 216.02M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 12.64B | 11.96B | 10.81B | 10.00B | 10.02B |
| Cash, Cash Equivalents and Short-Term Investments | 361.70M | 361.70M | 489.70M | 403.06M | 481.00M | 407.54M |
| Total Debt | 0.00 | 16.80M | 300.00K | 1.15M | 10.10M | 3.03M |
| Total Liabilities | -11.45B | 1.19B | 1.12B | 943.44M | 791.10M | 851.23M |
| Stockholders Equity | 11.45B | 11.45B | 10.85B | 9.87B | 9.21B | 9.17B |
Cash Flow | ||||||
| Free Cash Flow | 138.10M | -14.20M | 91.70M | 38.16M | 86.30M | -22.10M |
| Operating Cash Flow | 202.20M | 208.50M | 298.60M | 402.68M | 157.00M | 49.13M |
| Investing Cash Flow | -275.00M | -295.10M | -179.10M | -348.64M | -210.10M | 47.99M |
| Financing Cash Flow | -21.90M | -38.20M | -31.20M | -39.36M | -23.80M | -30.72M |
Hindustan Composites Limited Technical Analysis
Negative
453.50
Price Trends
424.62
Negative
428.50
Negative
423.69
Negative
Market Momentum
-7.56
Positive
38.77
Neutral
10.21
Positive
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 453.5 is above the 20-day moving average (MA) of 408.87, above the 50-day MA of 424.62, and above the 200-day MA of 423.69, indicating a bearish trend. The MACD of -7.56 indicates Positive momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.21 is Positive, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹5.80B | 17.90 | ― | 0.51% | -8.04% | -4.32% | |
60 Neutral | ₹3.45B | 20.04 | ― | 0.20% | 22.29% | 13.00% | |
58 Neutral | ₹3.64B | 11.23 | ― | ― | 3.52% | -16.66% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹2.22B | 132.85 | ― | ― | 12.84% | 94.63% | |
50 Neutral | ₹2.95B | 81.23 | ― | 0.09% | -4.69% | 13.74% | |
46 Neutral | ₹2.34B | 32.41 | ― | 74.29% | 13.31% | ― |
* General Sector Average
IN:HINDCOMPOS
Hindustan Composites Limited
395.05
-72.44
-15.50%
IN:REMSONSIND
Remsons Industries Limited
97.68
-26.84
-21.55%
IN:SETCO
Setco Automotive Limited
17.74
9.88
125.64%
IN:SINTERCOM
Sintercom India Ltd.
81.43
-41.51
-33.76%
IN:SUNDRMBRAK
Sundaram Brake Linings Limited
750.00
-25.43
-3.28%
IN:TOLINS
Tolins Tyres Limited
92.26
-64.19
-41.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.