Past 10 year’s financial track record analysis by Moneyworks4me indicates that HP Adhesives Ltd is a below average quality company.
The key valuation ratios of HP Adhesives Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of HP Adhesives Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'16 | Mar'17 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 0% | 0% | -7.5% | 34.2% | 11% | 11.4% | 18.6% | - |
| Value Creation Index ⓘ | NA | NA | -1.5 | 1.4 | -0.2 | -0.2 | 0.3 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | ||||||||
| Sales ⓘ | 0 | 0 | 84.5 | 118 | 165 | 233 | 236 | 233 |
| Sales YoY Gr. | - | NA | NA | 39.8% | 39.3% | 41.6% | 1.3% | - |
| Adj EPS ⓘ | 0 | 0 | 0 | 1.5 | 0.6 | 1.3 | 2.2 | 2.2 |
| YoY Gr. | - | NA | NA | 15000% | -60.9% | 113.6% | 72.2% | - |
| BVPS (₹) ⓘ | 0 | 0 | 0.4 | 2 | 15 | 16.1 | 18.4 | 19.2 |
| Adj Net Profit ⓘ | 0 | 0 | 0.1 | 9.8 | 5.4 | 11.6 | 19.9 | 21 |
| Cash Flow from Ops. ⓘ | 0 | 0 | 0.7 | 11.3 | -10.2 | -5.1 | 22.8 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 54.2 | 3.8 | -1.3 | -0.9 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | NA | NA | 25.9% | 1.3% | ||||
| Adj EPS ⓘ | NA | NA | 12.9% | 72.2% | ||||
| BVPSⓘ | NA | NA | 111.2% | 13.9% | ||||
| Share Price | - | - | - | -21.4% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'16 | Mar'17 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 0 | 0 | 3.4 | 129.5 | 7.2 | 8.1 | 12.6 | 11.9 |
| Op. Profit Mgn % ⓘ | 0 | 0 | 5 | 10.1 | 6.4 | 8 | 13.1 | 13.1 |
| Net Profit Mgn % ⓘ | 0 | 0 | 0.1 | 8.3 | 3.3 | 5 | 8.4 | 8.8 |
| Debt to Equity ⓘ | 0 | 0 | 14.1 | 3.3 | 0.1 | 0 | 0 | 0 |
| Working Cap Days ⓘ | 0 | 0 | 0 | 159 | 183 | 180 | 177 | 95 |
| Cash Conv. Cycle ⓘ | 0 | 0 | 0 | 82 | 70 | 77 | 96 | 74 |
Return on Equity has increased versus last 3 years average to 11.90%
Sales growth is growing at healthy rate in last 3 years 25.94%
Net Profit is growing at healthy rate in last 3 years 12.85%
Sales growth is not so good in last 4 quarters at -0.53%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 2.2 | - |
| TTM Sales (₹ Cr.) | 233 | - |
| BVPS (₹.) ⓘ | 19.2 | - |
| Reserves (₹ Cr.) ⓘ | 158 | - |
| P/BV ⓘ | 4.02 | - |
| PE ⓘ | 34.37 | - |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 75.49 / 131.00 |
| All Time Low / High (₹) | 61.96 / 131.00 |
| Market Cap (₹ Cr.) | 707 |
| Equity (₹ Cr.) | 18.4 |
| Face Value (₹) | 2 |
| Industry PE ⓘ | 55.9 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|
| Sales | 85 | 118 | 165 | 233 | 236 |
| Operating Expenses ⓘ | 80 | 106 | 154 | 214 | 205 |
| Manufacturing Costs | 3 | 3 | 4 | 7 | 9 |
| Material Costs | 54 | 81 | 121 | 168 | 148 |
| Employee Cost | 11 | 14 | 16 | 20 | 27 |
| Other Costs ⓘ | 12 | 7 | 13 | 18 | 22 |
| Operating Profit ⓘ | 4 | 12 | 11 | 19 | 31 |
| Operating Profit Margin (%) | 5.0% | 10.1% | 6.4% | 8.0% | 13.1% |
| Other Income ⓘ | 2 | 6 | 4 | 3 | 3 |
| Interest ⓘ | 3 | 3 | 3 | 2 | 2 |
| Depreciation ⓘ | 2 | 2 | 3 | 3 | 4 |
| Exceptional Items ⓘ | -7 | 0 | 0 | -1 | 0 |
| Profit Before Tax ⓘ | -5 | 13 | 8 | 15 | 28 |
| Tax ⓘ | -1 | 3 | 2 | 4 | 8 |
| Profit After Tax | -5 | 10 | 6 | 11 | 21 |
| PAT Margin (%) | -5.6% | 8.5% | 3.6% | 4.7% | 8.7% |
| Adjusted EPS (₹) | -0.7 | 1.6 | 0.7 | 1.2 | 2.2 |
| Dividend Payout Ratio (%) | 0% | 0% | 0% | 0% | 13% |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 2 | 13 | 137 | 148 | 169 | |||||
| Share Capital ⓘ | 13 | 13 | 18 | 18 | 18 | |||||
| Reserves ⓘ | -11 | 0 | 119 | 130 | 151 | |||||
| Minority Interest | 0 | 0 | 0 | 0 | 0 | |||||
| Debt | 34 | 31 | 10 | 3 | 0 | |||||
| Long Term Debt | 1 | 9 | 4 | 3 | 0 | |||||
| Short Term Debt | 34 | 23 | 5 | 0 | 0 | |||||
| Trade Payables | 15 | 26 | 31 | 20 | 16 | |||||
| Others Liabilities ⓘ | 2 | 18 | 16 | 13 | 13 | |||||
| Total Liabilities ⓘ | 54 | 88 | 194 | 184 | 198 | |||||
Fixed Assets | ||||||||||
| Gross Block | 19 | 29 | 38 | 55 | 72 | |||||
| Accumulated Depreciation | 8 | 10 | 13 | 16 | 20 | |||||
| Net Fixed Assetsⓘ | 11 | 19 | 26 | 39 | 52 | |||||
| CWIP ⓘ | 1 | 7 | 18 | 17 | 16 | |||||
| Investmentsⓘ | 0 | 0 | 0 | 0 | 18 | |||||
| Inventories | 19 | 32 | 41 | 45 | 48 | |||||
| Trade Receivables | 20 | 23 | 32 | 37 | 36 | |||||
| Cash Equivalents | 1 | 1 | 48 | 1 | 9 | |||||
| Others Assetsⓘ | 3 | 6 | 30 | 45 | 18 | |||||
| Total Assets ⓘ | 54 | 88 | 194 | 184 | 198 | |||||
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 1 | 11 | -10 | -5 | 23 |
| PBT ⓘ | -5 | 13 | 8 | 15 | 28 |
| Adjustment ⓘ | 4 | 4 | 4 | 5 | 4 |
| Changes in Working Capital ⓘ | 2 | -4 | -20 | -20 | -2 |
| Tax Paid ⓘ | 0 | -2 | -2 | -3 | -7 |
| Cash Flow From Investing Activity ⓘ | -5 | -16 | -67 | 8 | -15 |
| Capex | -5 | -16 | -16 | 5 | 1 |
| Net Investments | 0 | 0 | -52 | 0 | -18 |
| Others ⓘ | 0 | 0 | 1 | 2 | 2 |
| Cash Flow From Financing Activityⓘ | 4 | 5 | 86 | -12 | -7 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 118 | 0 | 0 |
| Net Proceeds from Borrowing ⓘ | 0 | 18 | -11 | -4 | -4 |
| Interest Paid ⓘ | -3 | -3 | -3 | -2 | -2 |
| Dividend Paid ⓘ | 0 | 0 | 0 | 0 | 0 |
| Others ⓘ | 6 | -10 | -18 | -6 | -2 |
| Net Cash Flow ⓘ | -1 | 0 | 9 | -10 | 0 |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | -190.34 | 132.86 | 8.01 | 7.6 | 12.97 | |||||
| ROCE (%) | -7.53 | 34.18 | 10.97 | 11.41 | 18.61 | |||||
| Asset Turnover Ratio | 1.55 | 1.66 | 1.17 | 1.23 | 1.24 | |||||
| PAT to CFO Conversion(x) | N/A | 1.1 | -1.67 | -0.45 | 1.1 | Working Capital Days | ||||
| Receivable Days | 86 | 66 | 61 | 54 | 57 | |||||
| Inventory Days | 80 | 79 | 82 | 67 | 72 | |||||
| Payable Days | 103 | 92 | 87 | 56 | 45 | |||||
HP Adhesives was originally formed as a partnership firm under the name and style of M/s. H.P. International pursuant to a deed of partnership dated January 01, 1987. M/s. HP International was thereafter converted into a private limited company HP Adhesives Private Limited on May 07, 2019, pursuant to the provisions of Chapter XXI of the Companies Act. Subsequently, the company has been converted into a public limited company and the name of the company changed to “HP Adhesives Limited” pursuant to a special resolution passed at the Extra-Ordinary General Meeting of the company held on June 23, 2021 and a fresh Certificate of Incorporation dated July 01, 2021 issued by the RoC.
The company has a robust business model aimed at consistently expanding its product portfolio by introducing new product categories as well as SKUs to cater to multiple end-use applications which are sold through its distribution network across India. With strict focus on product quality and long-standing track record in the distributor network, it has an established brand image which helps it in penetrating new product categories. The company constantly engages with its distributor network through marketing and promotional activities and also conduct a range of activities such as distributor meets, retailer meets and plumber and carpenter meets which leads to promotion of its product brands.
Business area of the company
The company is a fast-growing multi-product, multi-category consumer adhesives and sealants company. For its largest product category - PVC solvent cement, it is amongst the leading manufacturing companies in India in the consumer/ bazaar segment of the adhesive industry. It manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant which are sold across India, through an extensive distribution network of distributors, and exported also to several countries, through network of distributors and direct customers. It also manufactures these products for select large PVC pipe manufacturing companies under co-branding or private label on order basis. Apart from the above products, it also sells ancillary products like ball valves, thread seal and other tapes and FRP products for drainage and architectural solutions that are distributed along with its products to the end customers through its distribution network.
Key events and milestones
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MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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