💡 Did you know?
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
History
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Hindustan Composites Limited is an India-based company, which is engaged in the business of manufacturing and marketing of fiber-based friction material, consisting of brake liners, roll lining, brake blocks, clutch facing etc. and investments. The Company operates through…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A decent, slow-growing business, trading cheap versus its own history.
Hindustan Composites is scored on the general / industrial framework. It keeps a fat 51.9% of every rupee of sales as net profit. Cash conversion lags the reported profit (CFO/PAT 0.68×) — worth a closer look. Free cash flow is worth about -1.5% of its market value.
Over the last 3 years revenue compounded at -40%/yr and profit at 4%/yr. Book value has grown 8%/yr. Return on equity is a weak 1.3%. In the latest quarter profit fell 26% versus the prior quarter.
At 18× earnings, the stock sits at the 16th percentile of its own 3.6-year range — the cheap end of where it has historically traded. Today's price asks for only ~-27%/yr growth over a decade — undemanding expectations. The books come through clean — a forensic grade of A, and Altman puts distress risk in the safe zone.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 2.07 | — | — |
| P/B | 0.4 | — | — |
| EV/EBITDA | 1.74 | — | — |
| ROE | 1.31 | — | — |
| ROCE | 1.44 | — | — |
| ROA | 17.95 | 5.72 | better |
| Quick Ratio | 1.9 | 3.56 | worse |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| 3M India | 58.2 | 16.6 | 27.2% |
| NAVA | 15.4 | 1.7 | 9.0% |
| DCM Shriram | 10.1 | 1.7 | 16.3% |
Revenue is on a 2-year growth streak. Negative CAGR — the top line has shrunk over this window. Growth is decelerating — latest year grew slower than the year before.
Profit is on a 2-year growth streak. Profit is growing faster than revenue (4% vs -40%) — margin expansion is at work.
Operating margin has compressed from 12% to 9% — costs or competition are eating into profitability. Interest or tax burden is shrinking — more of the operating profit is reaching the bottom line.
ROE at 3% — modest; the capital isn't working hard. Low variance across years — a predictable business that earns steadily on its equity base.
EPS dropped in the latest year despite possible profit changes — dilution or a profit dip could be at play. 4% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
Operating cash flow has been positive every year — the business generates real cash, not just accounting profit. Investing outflows exceed operating cash — the company relies on external funding to finance expansion. Financing outflows in consecutive years — balance-sheet discipline through debt repayment or dividends.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue rose 11% sequentially — momentum is building. Wide quarterly swings (81% spread) — likely seasonality, lumpy orders, or project-based revenue. Run-rate fading — recent quarters 79% below earlier ones.
Profit fell 26% QoQ — one-quarter drops can be noise, but a pattern matters. Quarterly net margins are expanding (6% → 43%) — profitability per rupee of revenue is improving.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoters hold 75.0% — heavily owner-operated with strong skin in the game.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.