Hindustan Composites Limited (HINDCOMPOS) AI Stock Analysis

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Hindustan Composites Limited

(NSE:HINDCOMPOS)

Select Model

Rating:57Neutral

Price Target:INR 372.00▲(5.31% Upside)

Action:reiterated

Date:10/24/26

The company's pristine balance sheet is a major strength, but this is offset by deteriorating profitability and weak cash flow generation. Technical indicators confirm a bearish trend with the stock trading below key moving averages. The valuation is fair, providing some support, but overall the stock faces near-term headwinds.

Positive Factors

Low LeverageMinimal leverage reduces financial risk and interest burden, giving the company greater resilience through industry cycles. Rising equity also strengthens the capital base, preserves borrowing capacity, and supports continued investment without relying heavily on external financing.

Negative Factors

FY2026 Profit DeclineFalling net income while revenue increases indicates that recent growth has not translated fully into earnings, pointing to margin pressure. If this persists, it could weaken internal funding capacity and limit the benefit of the company’s otherwise positive sales trajectory.

Hindustan Composites Limited (HINDCOMPOS) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 5.21B
Dividend Yield: 0.54%
Average Volume (3M): 1,671
Price to Earnings (P/E): 16.1
Beta (1Y): 1.46
Revenue Growth: -8.04%
EPS Growth: -4.32%
Country: India
Employees: 528
Sector: General
Sector Strength: 55
Industry: Auto - Parts

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 frictio...

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/sealing p...

Hindustan Composites Limited Financial Statement Overview

Summary

The balance sheet is exceptionally strong with negligible debt, providing a solid foundation. However, income statement and cash flow performance are mixed, with declining profitability and negative free cash flow weighing on the overall financial health.

Income Statement

52Neutral

Balance Sheet

88Very Positive

Cash Flow

45Neutral

Financial statement breakdown
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	414.59M	333.56M
Net Income	323.30M	311.10M	350.00M	344.12M	274.70M	216.02M
Balance Sheet
Total Assets	0	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	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

Technical Analysis SentimentNegative

Last Price353.25

Price Trends

50DMA381.93Negative

100DMA394.10Negative

200DMA396.81Negative

Market Momentum

MACD-4.08Positive

RSI39.50Neutral

STOCH13.54Positive

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 353.25 is below the 20-day moving average (MA) of 394.79, below the 50-day MA of 381.93, and below the 200-day MA of 396.81, indicating a bearish trend. The MACD of -4.08 indicates Positive momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 13.54 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:HINDCOMPOS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:REMSONSIND	69Neutral	INR 3.01B	17.46	―	0.35%	22.29%	13.00%
IN:HINDCOMPOS	57Neutral	INR 5.22B	16.10	―	0.54%	-8.04%	-4.32%
IN:TOLINS	56Neutral	INR 3.23B	9.98	―	―	3.52%	-16.64%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SETCO	45Neutral	INR 2.07B	0.84	―	83.87%	-6.53%	―
IN:SINTERCOM	45Neutral	INR 2.19B	132.82	―	―	12.84%	95.53%
IN:SUNDRMBRAK	40Underperform	INR 2.38B	69.13	―	0.11%	-4.69%	13.74%

* General Sector Average

Performance Comparison

IN:HINDCOMPOS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:HINDCOMPOS	Hindustan Composites Limited	353.25	-93.91	-21.00%
IN:REMSONSIND	Remsons Industries Limited	86.30	-63.56	-42.41%
IN:SETCO	Setco Automotive Limited	15.50	5.73	58.68%
IN:SINTERCOM	Sintercom India Ltd.	79.69	-39.30	-33.03%
IN:SUNDRMBRAK	Sundaram Brake Linings Limited	605.85	-173.52	-22.26%
IN:TOLINS	Tolins Tyres Limited	81.67	-105.23	-56.30%

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.

Date of analysis: Oct 24, 2026

Hindustan Composites Limited AI Stock Analysis

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