HP Adhesives Limited (HPAL.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-74.0%

₹8.31

vs ₹31.93 price

Levered DCF

₹22.56

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

—

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	69.05×	25.75×	44.87×	61.81×	99.09×	42.68×	-91.88×	30.34×
P/B	2.57×	2.55×	5.46×	4.52×	4.33×	33.97×	173.07×	8.29×
P/S	1.93×	1.86×	3.91×	2.88×	3.61×	3.64×	4.5×	1.39×
EV / EBITDA	30.1×	15.45×	27.89×	32.99×	40.8×	26.78×	-501.51×	16.97×
Gross margin	19.9%	37.1%	36.6%	27.8%	24.3%	29.0%	32.2%	32.8%
Operating margin	2.9%	8.4%	22.1%	7.0%	6.0%	9.6%	2.9%	10.5%
Net margin	2.8%	7.2%	8.7%	4.7%	3.6%	8.5%	-4.9%	4.6%
Current ratio	3.58×	3.57×	4.61×	3.21×	2.74×	0.92×	0.8×	1.1×
Debt / equity	0.02×	0.04×	0.02×	0.06×	0.14×	3.36×	14.38×	1.62×
Interest coverage	2.72×	9.9×	27.77×	7.09×	3.15×	4.59×	1.06×	2.51×
Dividend yield	0.8%	0.6%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	52.7%	15.1%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	3.7%	9.9%	12.2%	7.3%	4.4%	79.5%	-188.0%	27.3%
Return on invested capital	3.6%	8.5%	22.1%	7.4%	4.6%	15.3%	6.1%	23.2%
Return on assets	3.0%	8.0%	10.4%	5.9%	3.1%	11.2%	-8.2%	7.1%
Free cash flow yield	-1.0%	-0.9%	0.7%	-3.1%	-4.6%	1.2%	-0.3%	-1.0%
Earnings yield	1.4%	3.9%	2.2%	1.6%	1.0%	2.3%	-1.1%	3.3%
Enterprise value	₹4.8B	₹4.7B	₹9.3B	₹6.8B	₹5.8B	₹4.7B	₹4.6B	₹1.4B
Net debt / EBITDA	-0.25×	0.1×	0.07×	0.4×	-1.32×	2.37×	-37.73×	2.58×
Cash conversion cycle (days)	98	139	134	112	99	99	18	97