Hindustan Motors Reports 77.39% Annual Return Amid Financial Challenges

Dec 27 2024 06:50 PM IST
share
Share Via
Hindustan Motors has recently experienced a revision in its score by MarketsMojo, reflecting changes in its market evaluation. The stock is currently in a mildly bullish range, supported by positive technical indicators. Despite a strong annual return, the company faces significant financial challenges, including high debt levels and reliance on non-operating income. In a recent analysis, Hindustan Motors has been added to MarketsMojo's list, indicating a shift in market perception. The company, a microcap in the passenger car segment, has shown notable performance over the past year, outperforming the BSE 500 index. However, concerns remain regarding its financial sustainability, highlighted by a high Debt to EBITDA ratio and a negative net worth. The latest quarterly results revealed a decline in profit after tax, raising questions about its reliance on non-core revenue streams. Despite a high return on equity, the stock's valuation appears steep, with minimal institutional investment reflecting cautious sentiment.
Hindustan Motors, a microcap player in the passenger car segment, has shown notable performance metrics despite facing challenges. Over the past year, the company has delivered impressive returns of 77.39%, significantly outperforming the BSE 500 index over various time frames, including the last three years and three months.

However, the company grapples with a high Debt to EBITDA ratio of -1.00 times, indicating a low ability to service its debt obligations. This financial strain is compounded by reported losses and a negative net worth, raising concerns about its sustainability without fresh capital or a return to profitability.

In terms of operational performance, the company has experienced a decline in profit after tax (PAT) for the quarter ending September 2024, falling by 43.7%. Additionally, non-operating income constituted a substantial 106.50% of profit before tax, highlighting reliance on non-core revenue streams.

Despite these challenges, Hindustan Motors boasts a remarkable return on equity (ROE) of 246.5, although it carries a high price-to-book value of 37.3, suggesting an expensive valuation. The stock is currently trading at fair value relative to its historical averages, yet domestic mutual funds hold a mere 0.05% stake, indicating cautious sentiment in the market.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News
Why is Hindustan Motors falling/rising?
Dec 05 2025 12:50 AM IST
share
Share Via
Are Hindustan Motors latest results good or bad?
Nov 13 2025 07:28 PM IST
share
Share Via
Why is Hindustan Motors falling/rising?
Nov 07 2025 09:58 PM IST
share
Share Via
Most Read
PVV Infra Ltd is Rated Hold by MarketsMOJO
11 minutes ago
share
Share Via
Minaxi Textiles Ltd is Rated Sell
11 minutes ago
share
Share Via
Incap Ltd is Rated Strong Sell
11 minutes ago
share
Share Via
Manugraph India Ltd is Rated Strong Sell
11 minutes ago
share
Share Via
Morarka Finance Ltd is Rated Strong Sell
11 minutes ago
share
Share Via