Hindustan Adhesives Reports Record Sales and Strong Profit Growth in Latest Quarter

Hindustan Adhesives, a microcap player in the plastic products industry, has demonstrated impressive financial performance, highlighted by a robust annual operating profit growth rate of 39.05%. The company recently reported its highest quarterly net sales at Rs 84.44 crore, alongside a peak PBDIT of Rs 10.02 crore and a PBT less other income of Rs 6.32 crore.
The stock is currently positioned in a mildly bullish range, supported by positive technical indicators such as MACD and KST. With a return on capital employed (ROCE) of 13.8, Hindustan Adhesives showcases an attractive valuation, reflected in its enterprise value to capital employed ratio of 1.8. Notably, the stock is trading at a discount compared to its historical averages.

Over the past year, Hindustan Adhesives has generated a return of 32.32%, with profits soaring by 96.4%. The company's PEG ratio stands at a low 0.1, indicating strong earnings growth relative to its stock price. The majority of shares are held by promoters, underscoring their confidence in the company's market position and performance.