HP Adhesives Ltd. (HPAL) AI Stock Analysis

HP Adhesives Ltd.

(NSE:HPAL)

Select Model

Rating:55Neutral

Price Target:INR 31.00▲(2.41% Upside)

Action:reiterated

Date:08/18/26

The overall score of 55 is driven mainly by a strong but less efficiently used balance sheet and deteriorating cash-backed profitability, while a very rich valuation and only moderately supportive technical signals limit the upside appeal.

Positive Factors

Low financial leverageThe very low debt burden reduces financial risk and limits interest-related pressure on earnings. It also preserves flexibility to sustain investment, support working capital, or manage periods of operating weakness without relying heavily on additional borrowing.

Negative Factors

Weak recent revenue and earnings momentumRecent deterioration in revenue momentum and the steep EPS decline indicate weaker operating performance and reduced earnings visibility. If this persists, it can constrain internal funding, weaken investor confidence in the business trajectory, and limit near-term improvement in returns.

HP Adhesives Ltd. (HPAL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.79B
Dividend Yield: 1.32%
Average Volume (3M): 7,877
Price to Earnings (P/E): 150.7
Beta (1Y): 1.63
Revenue Growth: -2.66%
EPS Growth: -88.84%
Country: India
Employees: 705
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

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 well a...

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-cases...

HP Adhesives Ltd. Financial Statement Overview

Summary

The score reflects a solid, low-debt balance sheet with rising equity, offset by weaker recent profitability, lower returns on equity, and volatile, often negative free cash flow that undermines the quality and sustainability of earnings.

Income Statement

56Neutral

Balance Sheet

74Positive

Cash Flow

32Negative

Financial statement breakdown
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	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	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

Technical Analysis SentimentNegative

Last Price30.27

Price Trends

50DMA34.23Negative

100DMA34.46Negative

200DMA35.40Negative

Market Momentum

MACD-0.85Positive

RSI37.55Neutral

STOCH53.07Neutral

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 30.27 is below the 20-day moving average (MA) of 33.06, below the 50-day MA of 34.23, and below the 200-day MA of 35.40, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 53.07 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:HPAL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PIDILITIND	79Outperform	INR 1.49T	55.45	―	1.13%	16.83%	20.50%
IN:VARDHACRLC	75Outperform	INR 3.17B	7.01	―	3.81%	12.39%	343.44%
IN:ROSSARI	65Neutral	INR 22.12B	14.48	―	0.13%	19.76%	11.74%
IN:VINYLINDIA	60Neutral	INR 4.31B	15.85	―	3.01%	7.25%	38.70%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:HPAL	55Neutral	INR 2.78B	150.69	―	1.32%	-2.66%	-88.84%
IN:LXCHEM	46Neutral	INR 42.47B	33.72	―	0.20%	5.47%	24.88%

* General Sector Average

Performance Comparison

IN:HPAL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:HPAL	HP Adhesives Ltd.	30.27	-21.42	-41.44%
IN:LXCHEM	Laxmi Organic Industries Ltd.	152.80	-43.86	-22.30%
IN:PIDILITIND	Pidilite Industries Limited	1460.00	10.19	0.70%
IN:ROSSARI	Rossari Biotech Ltd	399.25	-242.58	-37.79%
IN:VARDHACRLC	Vardhman Acrylics Ltd.	39.41	-0.99	-2.44%
IN:VINYLINDIA	Vinyl Chemicals (India) Limited	234.90	-34.86	-12.92%

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 ha...

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-cause n...

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, with i...

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: Aug 18, 2026

HP Adhesives Ltd. AI Stock Analysis