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HP Adhesives Ltd.
(HPAL)
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Rating:52Neutral
Price Target:
₹36.00
▼(-15.71% Downside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by deteriorating profitability and weak cash generation (negative free cash flow), despite a conservatively positioned balance sheet. Technicals are broadly neutral, while valuation is a meaningful headwind due to the very high P/E and only modest dividend yield.
Positive Factors
Low Financial Leverage
Very low leverage limits interest and refinancing risk, helping HP Adhesives withstand operating pressure. The solid equity base also preserves financial flexibility to fund growth, absorb volatility, or reinvest without relying heavily on additional borrowing.
Negative Factors
Sharp Margin Compression
The steep deterioration in gross and net margins signals substantial cost pressure and weaker operating leverage. Unless pricing, product mix, or input-cost management improves, lower profitability could constrain reinvestment, returns, and the durability of future earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Financial Leverage
Very low leverage limits interest and refinancing risk, helping HP Adhesives withstand operating pressure. The solid equity base also preserves financial flexibility to fund growth, absorb volatility, or reinvest without relying heavily on additional borrowing.
Read all positive factors
HP Adhesives Ltd. (HPAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.24B
Dividend Yield1.15%
Average Volume (3M)11.12K
Price to Earnings (P/E)177.1
Beta (1Y)1.57
Revenue Growth-2.66%
EPS Growth-88.84%
CountryIN
Employees705
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.20
Shares Outstanding91,874,730
10 Day Avg. Volume4,488
30 Day Avg. Volume11,116
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)2.57
Price to Sales (P/S)1.93
P/FCF Ratio-98.04
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
HP Adhesives Ltd. Business Overview & Revenue Model
Company Description
HP Adhesives Limited manufactures and distributes adhesives and sealants in India and internationally. Its products include solvent cement, contact adhesive, white glue/PVA, epoxy putty and adhesives, spray paints, and plumbing accessories, as wel...
How the Company Makes Money
HPAL primarily makes money by manufacturing and selling adhesives and allied chemical products to customers in India through a branded consumer-products model. Revenue is generated mainly from (1) sales of adhesive products across multiple use-cas...
HP Adhesives Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
82
Very Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.52B | 2.49B | 2.53B | 2.36B | 2.33B | 1.65B |
| Gross Profit | 469.89M | 495.97M | 938.45M | 864.78M | 647.41M | 399.77M |
| EBITDA | 74.61M | 158.71M | 305.98M | 331.69M | 205.61M | 141.27M |
| Net Income | 18.78M | 69.77M | 182.44M | 205.68M | 108.58M | 60.06M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 2.32B | 2.28B | 1.98B | 1.85B | 1.95B |
| Cash, Cash Equivalents and Short-Term Investments | 304.28M | 304.28M | 293.79M | 302.80M | 29.40M | 490.79M |
| Total Debt | 0.00 | 42.33M | 77.03M | 31.64M | 85.28M | 185.59M |
| Total Liabilities | -1.88B | 443.68M | 437.95M | 289.17M | 363.64M | 580.80M |
| Stockholders Equity | 1.88B | 1.88B | 1.84B | 1.69B | 1.48B | 1.37B |
Cash Flow | ||||||
| Free Cash Flow | 84.00M | -49.14M | -40.88M | 63.31M | -210.54M | -276.09M |
| Operating Cash Flow | 109.70M | 79.23M | 99.39M | 227.84M | -50.47M | -102.12M |
| Investing Cash Flow | -48.18M | -29.24M | -91.06M | -151.44M | 75.44M | -293.44M |
| Financing Cash Flow | -68.48M | -72.47M | 15.25M | -72.43M | -123.24M | 864.05M |
HP Adhesives Ltd. Technical Analysis
Negative
42.71
Price Trends
34.78
Positive
35.97
Negative
37.35
Negative
Market Momentum
0.11
Positive
49.37
Neutral
45.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HPAL, the sentiment is Negative. The current price of 42.71 is above the 20-day moving average (MA) of 35.23, above the 50-day MA of 34.78, and above the 200-day MA of 37.35, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HPAL.
HP Adhesives Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹1.62T | 60.42 | ― | 1.05% | 14.09% | 21.36% | |
75 Outperform | ₹3.55B | 8.48 | ― | 3.41% | 11.41% | 351.50% | |
58 Neutral | ₹4.14B | 21.87 | ― | 3.13% | -3.22% | -14.59% | |
57 Neutral | ₹25.18B | 16.61 | ― | 0.11% | 19.47% | 11.49% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹3.24B | 177.11 | ― | 1.09% | -2.66% | -88.84% | |
50 Neutral | ₹51.21B | 39.42 | ― | 0.17% | 5.47% | 24.88% |
* General Sector Average
IN:HPAL
HP Adhesives Ltd.
35.06
-12.04
-25.56%
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HP Adhesives Ltd. Corporate Events
HP Adhesives Publishes Unaudited Q1 FY27 Results, Reinforces SEBI-Compliant Disclosure
Aug 15, 2026
HP Adhesives Ltd., a Mumbai-headquartered player in the adhesives and sealants segment, serves a range of industrial and consumer applications in India. The company is listed on NSE and BSE and operates under SEBI’s disclosure framework, wit...
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.