Is Hindustan Composites a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Hindustan Composites Ltd is a below average quality company .

Is Hindustan Composites undervalued or overvalued?

The key valuation ratios of Hindustan Composites Ltd's currently when compared to its past seem to suggest it is in the Fair zone .

What is Hindustan Composites share price return in the past 10 years?

Hindustan Composites Ltd share price has appreciated 7.7% annually (CAGR) over the past ten years.

Is Hindustan Composites a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Hindustan Composites Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

Hindustan Composites Ltd - Stock Valuation and Financial Performance

Name: Hindustan Composites
Brand: Hindustan Composites

BSE: 509635 | NSE: HINDCOMPOS | Auto Ancillary | Small Cap

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Hindustan Composites Share Price

₹482.45 13.65 2.91%
as on 05-Nov'24 00:00

10 Year X-Ray of Hindustan Composites:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	5.5%	4.1%	4.8%	4%	2.4%	1.4%	3.1%	2.9%	3.6%	4.5%	-
Value Creation Index ⓘ	-0.6	-0.7	-0.7	-0.7	-0.8	-0.9	-0.8	-0.8	-0.8	-0.7	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	152	153	166	199	197	179	186	233	283	298	299
Sales YoY Gr.	-	0.7%	8.5%	19.9%	-1.3%	-8.7%	3.7%	25%	21.5%	5.3%	-
Adj EPS ⓘ	18.3	15.7	16.5	17.1	12.5	8.6	12	16.4	18.4	23.3	22.4
YoY Gr.	-	-13.9%	4.6%	4.1%	-27.2%	-30.8%	39.2%	36.9%	12.1%	26.5%	-
BVPS (₹) ⓘ	371.9	430	469.4	501.2	516.5	522.5	554.6	622.5	624.9	669.5	675.3
Adj Net Profit ⓘ	27	23.2	24.3	25.3	18.4	12.7	17.7	24.3	27.2	34.4	33
Cash Flow from Ops. ⓘ	11.2	8.3	11.3	52.8	4.9	4.1	9.2	22.4	15.7	40.3	-
Debt/CF from Ops. ⓘ	0.5	0.6	0.4	0.1	0.7	1.4	0.1	0	0.1	0	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	7.8%	8.7%	17%	5.3%
Adj EPS ⓘ	2.8%	13.3%	24.7%	26.5%
BVPSⓘ	6.8%	5.3%	6.5%	7.1%
Share Price	7.7%	22.1%	14.4%	20.4%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	5	3.9	3.7	3.5	2.5	1.7	2.2	2.8	3	3.6	3.3
Op. Profit Mgn % ⓘ	24.8	21.1	23.4	18.5	12.8	11.7	15.7	16	14.5	17.5	16.8
Net Profit Mgn % ⓘ	17.7	15.2	14.6	12.7	9.4	7.1	9.5	10.4	9.6	11.6	11
Debt to Equity ⓘ	0	0	0	0	0	0	0	0	0	0	-
Working Cap Days ⓘ	180	202	218	186	193	222	221	165	111	100	70
Cash Conv. Cycle ⓘ	32	26	9	0	8	13	12	4	3	-1	38

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 3.30%

Sales growth is growing at healthy rate in last 3 years 16.96%

Net Profit is growing at healthy rate in last 3 years 24.74%

Sales growth is not so good in last 4 quarters at 5.41%

Latest Financials - Hindustan Composites Ltd.

	Standalone	Consolidated
TTM EPS (₹)	22.4	22.4
TTM Sales (₹ Cr.)	299	299
BVPS (₹.) ⓘ	675.3	673.9
Reserves (₹ Cr.) ⓘ	990	988
P/BV ⓘ	0.69	0.69
PE ⓘ	20.88	20.88

From the Market
52 Week Low / High (₹)	370.00 / 669.90
All Time Low / High (₹)	2.87 / 802.67
Market Cap (₹ Cr.)	690
Equity (₹ Cr.)	7.4
Face Value (₹)	5
Industry PE ⓘ	53.8

Management X-Ray of Hindustan Composites:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

Valuation of Hindustan Composites

Price Calculator

Price Chart

Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Hindustan Composites

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	152	153	166	199	197	179	186	233	283	298
Operating Expenses ⓘ	116	125	127	162	172	160	158	200	242	246
Manufacturing Costs	18	21	23	28	30	29	29	35	42	47
Material Costs	51	48	56	76	83	70	73	102	130	128
Employee Cost	19	22	24	28	32	34	33	36	39	39
Other Costs ⓘ	28	34	23	30	27	27	24	26	31	32
Operating Profit ⓘ	36	28	39	37	25	20	28	33	41	51
Operating Profit Margin (%)	23.6%	18.6%	23.3%	18.5%	12.7%	10.9%	14.9%	14.2%	14.4%	17.2%
Other Income ⓘ	0	2	1	0	2	0	6	0	1	1
Interest ⓘ	0	0	0	0	0	0	0	0	0	0
Depreciation ⓘ	6	7	8	9	9	10	9	9	9	10
Exceptional Items ⓘ	0	0	0	0	0	0	0	0	0	0
Profit Before Tax ⓘ	30	24	32	28	18	10	25	25	33	43
Tax ⓘ	4	3	7	3	-1	-2	4	3	5	8
Profit After Tax	26	21	25	25	19	12	21	22	27	34
PAT Margin (%)	17.0%	13.5%	15.0%	12.7%	9.7%	6.7%	11.3%	9.3%	9.7%	11.6%
Adjusted EPS (₹)	17.5	14.0	16.9	17.2	12.9	8.2	14.2	14.6	18.6	23.3
Dividend Payout Ratio (%)	2%	2%	1%	3%	16%	25%	14%	14%	11%	9%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	549	635	693	740	763	772	819	919	923	989
Share Capital ⓘ	5	5	5	7	7	7	7	7	7	7
Reserves ⓘ	544	630	688	733	755	764	812	912	916	981
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	5	4	4	4	3	5	0	0	0	0
Long Term Debt	4	3	3	2	1	0	0	0	0	0
Short Term Debt	1	1	1	2	2	5	0	0	0	0
Trade Payables	10	13	26	34	35	32	39	42	39	45
Others Liabilities ⓘ	20	50	59	55	55	52	65	42	39	59
Total Liabilities ⓘ	584	702	781	833	856	861	924	1,004	1,001	1,093
Fixed Assets
Gross Block	164	127	138	143	154	158	159	162	166	192
Accumulated Depreciation	49	7	14	20	28	36	43	49	54	55
Net Fixed Assetsⓘ	115	120	124	122	125	122	116	113	111	138
CWIP ⓘ	0	0	0	0	0	0	0	0	0	0
Investmentsⓘ	386	473	541	613	617	625	687	796	807	872
Inventories	6	7	9	11	12	13	12	14	14	14
Trade Receivables	23	27	27	35	34	34	42	37	40	37
Cash Equivalents	2	4	4	2	1	7	2	3	2	2
Others Assetsⓘ	51	72	76	50	66	59	65	41	28	30
Total Assets ⓘ	584	702	781	833	856	861	924	1,004	1,001	1,093

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	11	8	11	53	5	4	9	22	16	40
PBT ⓘ	30	24	32	28	18	10	25	25	33	43
Adjustment ⓘ	-19	-12	-19	-15	-10	-5	-15	-38	-39	-37
Changes in Working Capital ⓘ	4	3	3	46	-1	-0	4	6	-5	6
Tax Paid ⓘ	-3	-7	-5	-6	-3	-1	-5	-6	-8	-7
Cash Flow From Investing Activity ⓘ	-8	-6	-9	-54	-3	3	0	-13	-21	-35
Capex	-7	-12	-11	-7	-12	-7	3	-7	-5	-36
Net Investments	-23	-45	10	-27	20	4	0	-18	-29	-4
Others ⓘ	22	51	-8	-20	-11	6	-3	13	13	5
Cash Flow From Financing Activityⓘ	-3	-1	-1	-1	-3	-1	-9	-3	-2	-4
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	0	0	0	0
Net Proceeds from Borrowing ⓘ	-1	-1	0	-1	-1	-1	0	0	0	0
Interest Paid ⓘ	0	0	0	0	0	0	0	0	0	0
Dividend Paid ⓘ	-1	-1	-1	-1	-1	-4	-3	-3	-3	-3
Others ⓘ	-1	0	0	1	0	3	-5	0	1	-1
Net Cash Flow ⓘ	1	1	1	-2	-1	6	1	7	-8	1

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	4.81	3.5	3.75	3.54	2.53	1.57	2.64	2.49	2.98	3.6
ROCE (%)	5.48	4.05	4.81	3.96	2.44	1.37	3.13	2.85	3.55	4.46
Asset Turnover Ratio	0.29	0.26	0.24	0.25	0.23	0.21	0.21	0.24	0.28	0.28
PAT to CFO Conversion(x)	0.42	0.38	0.44	2.12	0.26	0.33	0.43	1	0.59	1.18
Working Capital Days
Receivable Days	55	54	54	55	64	69	75	62	50	47
Inventory Days	15	14	16	18	22	25	24	20	17	17
Payable Days	81	90	126	143	152	174	179	146	115	120

Hindustan Composites Ltd Stock News

Hindustan Composites Ltd FAQs

What is the share price of Hindustan Composites?

Company share prices are keep on changing according to the market conditions. The closing price of Hindustan Composites on 05-Nov-2024 00:00 is ₹482.4.

What is the market cap of Hindustan Composites?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 05-Nov-2024 00:00 the market cap of Hindustan Composites stood at ₹689.9.

What is the P/E ratio of Hindustan Composites?

The latest P/E ratio of Hindustan Composites as of 05-Nov-2024 00:00 is 20.88.

What is the P/B ratio of Hindustan Composites?

The latest P/B ratio of Hindustan Composites as of 05-Nov-2024 00:00 is 0.69.

What is the 52-week high and low of Hindustan Composites?

The 52-week high of Hindustan Composites is ₹669.9 and the 52-week low is ₹370.0.

What is the TTM revenue of Hindustan Composites?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Hindustan Composites is ₹299.1 ( Cr.) .

About Hindustan Composites Ltd

The company was incorporated on July 1, 1964. The certificate of commencement of business was obtained on August 19, 1964. It was jointly promoted by Turner & Newall, Manchester, a wholly owned subsidiary of Turner & Newall, with 74% equity participation. The company acquired the undertaking of Asbestos, Magnesia & Friction Material, comprising its entire manufacturing businesses as well as the estate, factory and office, with approximately 18 acres of land at Agra road. In November the company entered into technical assistance agreements with the operating subsidiaries of Turner & Newall.

Hindustan Composites is a pioneer in the development, manufacturing & marketing of Asbestos Industrial Products and Friction Materials in India for over 45 years.

Composites, with its wide range of products suitable for a number of general and specialized applications, has been catering to the diversified needs of core sector industries, such as Railways, Engineering, Mining, Aerospace, Steel, Chemical, Petrochemical, Fertilizer, power generation, Ship building, Atomic Energy, Electrical, Oil exploration, Automotive, etc.

A technology driven company, it is committed to continuous upgradation, development of materials and processes, to ensure the highest quality standards.

Products of this company are being exported to more than 30 countries. This company operates in Latin America, Greece, Middle East and South East Asia. Export turnover of this company is US $ 2 Million.

Product range of the company includes:

Friction Material:

Automotive Brake Linings
Automotive Roll Linings
Automotive Clutch Facings
Automotive Disc Brake Pads
Railway Brake Blocks
Friction Sheets
Industrial Roll Linings

Industrial Sealing & Insulation Products:

Jointing Sheets
Packings
Asbestos Yarns
Asbestos Cloths
Rubber Proofed Sheets
Rubber Proofed Tapes
Asbestos Millboard Sheets
Asbestos Millboard Discs
Compestos
Limpet

Their other major strengths, besides quality products and service, are multi-location production facilities and a wide network of Distributors and Wholesale Dealers.

Milestones:

1982: A strike by the employees had an impact on the sales for the year. During the year the company received Government approval for additional capacities of 1325 tonnes of brake linings and 10 lakh nos. of clutch facings. A collaboration agreement with VALCO, FRANCE for the manufacture of diaphragm clutches was also signed.
1983: The company has acquired 44,886 sq.mts. of land at Paithan in Aurangabad district of Maharastra, during the period for setting up one or more remaining plants of the company for expansion/diversification.
1984: The working was adversely affected due to sluggish market conditions, keen competition, escalation in the cost of inputs, higher interest burden and steep increase in the Dollar Rupee parity. During the year application was filed for Industrial licence for the manufacture of speciality industrial gaskets in technical collaboration with FLEXITALLIC LTD., U.K.
1986: Manufacture of diaphragm clutches at Jalna commenced.
1989-90:New markets were identified for its products and new items were added to its range of exports. Depreciation of the Rupee against the US and Canadian dollar imposed burden on the cost of raw asbestos, a principal raw material. The Jalna plant was proposed to be disposed. Necessary approvals were awaited.

Certification:

The Company's R & D Centre has been accorded recognition by the Department of Science and Technology, Government of India.
Minister of state for Commerce and Industry has given export award to Hindustan Composites.
It has got product certification from AMECA obtained for asbestos free product range consisting of heavy duty drum brake linings, disc brake pads, woven clutch facings, roll linings and friction sheets.
The quality control and continuous quality improvement program had enabled HCL to have accrediation by Det Norske Veritas for ISO - 9002 - Quality system, since the year 1996.