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HP Adhesives Ltd.
(HPAL)
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Rating:52Neutral
Price Target:
₹31.00
▼(-27.42% 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 debt-to-equity of approximately 0.02–0.04 in 2024–2026, together with a solid equity base relative to assets, limits balance-sheet strain. This gives HPAL greater resilience during operating pressure and preserves flexibility to fund growth or absorb volatility without heavy financing dependence.
Negative Factors
Softening Revenue Momentum
Revenue momentum weakened in 2026, with a small annual decline after only modest growth in 2025. A slowing top line can constrain operating leverage, reduce the capacity to spread fixed costs, and make sustained earnings improvement more dependent on mix, pricing, or renewed demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Financial Leverage
Very low debt-to-equity of approximately 0.02–0.04 in 2024–2026, together with a solid equity base relative to assets, limits balance-sheet strain. This gives HPAL greater resilience during operating pressure and preserves flexibility to fund growth or absorb volatility without heavy financing dependence.
Read all positive factors
HP Adhesives Ltd. (HPAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.03B
Dividend Yield1.21%
Average Volume (3M)3.72K
Price to Earnings (P/E)163.3
Beta (1Y)1.64
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. Volume3,222
30 Day Avg. Volume3,719
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
34.31
Negative
34.51
Negative
35.45
Negative
Market Momentum
-0.71
Positive
47.99
Neutral
60.62
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 33.24, above the 50-day MA of 34.31, and above the 200-day MA of 35.45, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 60.62 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹1.45T | 53.95 | ― | 1.16% | 16.83% | 20.50% | |
75 Outperform | ₹3.24B | 7.17 | ― | 3.72% | 12.39% | 343.44% | |
60 Neutral | ₹22.57B | 14.78 | ― | 0.12% | 19.76% | 11.74% | |
60 Neutral | ₹4.43B | 16.23 | ― | 2.92% | 7.25% | 38.70% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹3.03B | 163.31 | ― | 1.21% | -2.66% | -88.84% | |
50 Neutral | ₹44.47B | 35.31 | ― | 0.19% | 5.47% | 24.88% |
* General Sector Average
IN:HPAL
HP Adhesives Ltd.
33.00
-18.08
-35.40%
IN:LXCHEM
Laxmi Organic Industries Ltd.
160.00
-35.72
-18.25%
IN:PIDILITIND
Pidilite Industries Limited
1,421.40
-13.87
-0.97%
IN:ROSSARI
Rossari Biotech Ltd
407.45
-232.68
-36.35%
IN:VARDHACRLC
Vardhman Acrylics Ltd.
40.30
0.17
0.43%
IN:VINYLINDIA
Vinyl Chemicals (India) Limited
241.80
-27.62
-10.25%
HP Adhesives Ltd. Corporate Events
HP Adhesives Closes Trading Window Ahead of September 2026 Results
Sep 30, 2026
HP Adhesives Ltd. has announced the closure of its trading window for designated persons and their immediate relatives from October 1, 2026 until 48 hours after the upcoming board meeting to consider unaudited financial results for the quarter and...
HP Adhesives to Appeal Customs Order on Anti-Dumping Duty Demand
Sep 27, 2026
HP Adhesives Ltd. has disclosed that it received an Order-in-Original from the Joint Commissioner of Customs at Nhava Sheva concerning anti-dumping duty on certain imported consignments of PTFE thread seal tape. The order follows a prior show-caus...
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.