New Risk • Apr 24
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₹6.78b market cap, or US$72.0m). Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₹492, the stock trades at a trailing P/E ratio of 28.5x. Average trailing P/E is 29x in the Auto Components industry in India. Total returns to shareholders of 84% over the past three years. Announcement • Apr 14
Hindustan Composites Limited to Report Q4, 2026 Results on Apr 23, 2026 Hindustan Composites Limited announced that they will report Q4, 2026 results on Apr 23, 2026 Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: ₹4.52 (vs ₹7.43 in 3Q 2025) Third quarter 2026 results: EPS: ₹4.52 (down from ₹7.43 in 3Q 2025). Revenue: ₹945.1m (up 16% from 3Q 2025). Net income: ₹66.7m (down 39% from 3Q 2025). Profit margin: 7.1% (down from 13% in 3Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 03
Hindustan Composites Limited to Report Q3, 2026 Results on Feb 12, 2026 Hindustan Composites Limited announced that they will report Q3, 2026 results on Feb 12, 2026 Reported Earnings • Nov 13
Second quarter 2026 earnings released: EPS: ₹3.58 (vs ₹6.29 in 2Q 2025) Second quarter 2026 results: EPS: ₹3.58 (down from ₹6.29 in 2Q 2025). Revenue: ₹885.8m (up 15% from 2Q 2025). Net income: ₹52.8m (down 43% from 2Q 2025). Profit margin: 6.0% (down from 12% in 2Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 14% per year. Announcement • Nov 03
Hindustan Composites Limited to Report Q2, 2026 Results on Nov 12, 2025 Hindustan Composites Limited announced that they will report Q2, 2026 results on Nov 12, 2025 Announcement • Sep 26
Hindustan Composites Limited Approves Dividend for the Financial Year Ended March 31, 2025 Hindustan Composites Limited at its Annual General Meeting held on September 25, 2025, approved the payment of dividend of INR 2 per equity share having face value of INR 5 each that is 40% of the paid-up equity share capital of the Company for the financial year ended March 31, 2025. Declared Dividend • Sep 01
Dividend of ₹5.00 announced Shareholders will receive a dividend of ₹5.00. Ex-date: 18th September 2025 Payment date: 25th October 2025 Dividend yield will be 1.1%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is well covered by both earnings (8% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 29% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Aug 28
Hindustan Composites Limited, Annual General Meeting, Sep 25, 2025 Hindustan Composites Limited, Annual General Meeting, Sep 25, 2025, at 11:45 Indian Standard Time. Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: ₹5.05 (vs ₹5.87 in 1Q 2025) First quarter 2026 results: EPS: ₹5.05 (down from ₹5.87 in 1Q 2025). Revenue: ₹870.8m (up 13% from 1Q 2025). Net income: ₹74.6m (down 14% from 1Q 2025). Profit margin: 8.6% (down from 11% in 1Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 30
Hindustan Composites Limited to Report Q1, 2026 Results on Aug 08, 2025 Hindustan Composites Limited announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 10
Full year 2025 earnings released: EPS: ₹23.70 (vs ₹23.30 in FY 2024) Full year 2025 results: EPS: ₹23.70 (up from ₹23.30 in FY 2024). Revenue: ₹3.34b (up 12% from FY 2024). Net income: ₹350.0m (up 1.7% from FY 2024). Profit margin: 11% (down from 12% in FY 2024). Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 17% per year. Announcement • May 09
Hindustan Composites Limited Recommends Payment of Dividend for Year Ended March 31, 2025 Hindustan Composites Limited at Board of Directors of the Company at its meeting held on 7th May, 2025 it recommended the payment of dividend on Equity Shares of INR 5 each @ INR 2 (Rupees Two only) per share for the financial year ended 31st March, 2025, subject to approval of the members in the ensuing Annual General Meeting of the Company. The dividend, if approved at the ensuing Annual General Meeting of the Company, shall be paid/dispatched within 30 days of the ensuing Annual General Meeting. The date of Annual General Meeting will be intimated in due course of time. Announcement • May 01
Hindustan Composites Limited to Report Q4, 2025 Results on May 07, 2025 Hindustan Composites Limited announced that they will report Q4, 2025 results on May 07, 2025 Reported Earnings • Feb 11
Third quarter 2025 earnings released: EPS: ₹7.43 (vs ₹4.37 in 3Q 2024) Third quarter 2025 results: EPS: ₹7.43 (up from ₹4.37 in 3Q 2024). Revenue: ₹818.5m (up 14% from 3Q 2024). Net income: ₹109.7m (up 70% from 3Q 2024). Profit margin: 13% (up from 9.0% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 14% per year. Announcement • Jan 31
Hindustan Composites Limited to Report Q3, 2025 Results on Feb 10, 2025 Hindustan Composites Limited announced that they will report Q3, 2025 results on Feb 10, 2025 Announcement • Jan 23
Hindustan Composites Limited Announces Out of Court Settlement with Krantikari Kamgar Union Hindustan Composites Limited announced that Pursuant to the provisions of Regulations 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), read with SEBI Master circular dated 11th November 2024 and in continuation to its disclosure dated 11th August, 2023 regarding Writ Petition No 209 of 2010, filed in the Bombay High Court by Krantikari Kamgar Union (Petitioner), the company like to inform that an out of court settlement has been arrived between the Company (Respondent Company) and the Krantikari Kamgar Union (Petitioner). The Petitioner unanimously agreed to settle the disputes against the Respondent Company, and an amicable settlement was reached between the Petitioner and the Respondent Company. In the event of settlement of the proceedings, the terms of the settlement include that the Respondent Company shall make a total payment of INR 12,00,00,000/- (Indian Rupees Twelve Crores Only) towards full and final settlement of all the disputes and any claims raised by the Petitioner in the captioned Writ Petition. Out of the total Settlement Amount of INR 120,000,000/- (Indian Rupees Twelve Crores Only), a sum of INR 12,000,000/- (Indian Rupees One Crore Twenty Lakhs Only), which is 10% of the Settlement Amount, will be paid as legal fees and expenses to the workers committee members/advisor as agreed. The remaining balance amount of INR 108,000,000/- (Indian Rupees Ten Crores Eighty Lakhs Only) shall be distributed to the workers/members of the Petitioner union. The Respondent Company shall pay this amount to the individual union members or their legal heirs/representatives, subject to deduction of TDS or any other statutory deduction, as applicable, based on a list of eligible workers/members of the Petitioner union and their compensation amount, provided by the Respondent Company and verified and approved by the Petitioner. In case any amounts remain unclaimed, such amounts shall be deposited in the Industrial Court or other designated government authority along with proper details after 6 months from the date of signing of the Minutes of the Order. Once the remaining amount is deposited in the Court/designated government authority, affected workers/members of the Petitioner may claim their amounts from the Court/designated government authority upon submission of necessary documents. Upon receipt of the Settlement Amount, all existing and future claims by the Petitioner against the Respondent Company arising out of the above Petition shall stand fully and finally settled. The Petitioner or its members shall not be entitled to raise any further claims of any nature against the Respondent Company in the future. The Petitioner confirms the above method of distribution and will provide to the Respondent Company individual acknowledgments and receipts of payment of full and final settlement along with confirmation from all its members/successors/heirs that there are no further claims against the Respondent Company of any nature. The Petitioner hereby releases and withdraws all claims and allegations against the Respondent Company. The Petitioner further undertakes not to initiate any legal proceedings related to the claims in furtherance of Reference (IT) No. 71 of 1997 and undertakes to withdraw Writ Petition No. 2091 of 2006 within 30 days of execution of these Minutes of the Order. The impact on the financial position of the Company includes a one-time settlement amount of INR 120,000,000/- (Indian Rupees Twelve Crores Only) being recorded in the Profit and Loss account in the financial statements of the Respondent Company, which will reduce the profit of the Respondent Company by such amount. However, there will be no significant impact on the financial position of the Respondent Company as it has sufficient cash reserves/internal accruals to manage the above settlement. New Risk • Jan 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.5% average weekly change). Market cap is less than US$100m (₹7.62b market cap, or US$88.7m). Valuation Update With 7 Day Price Move • Dec 10
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₹568, the stock trades at a trailing P/E ratio of 25.9x. Average trailing P/E is 33x in the Auto Components industry in India. Total returns to shareholders of 83% over the past three years. Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: ₹6.29 (vs ₹6.73 in 2Q 2024) Second quarter 2025 results: EPS: ₹6.29 (down from ₹6.73 in 2Q 2024). Revenue: ₹771.2m (up 7.5% from 2Q 2024). Net income: ₹92.9m (down 6.5% from 2Q 2024). Profit margin: 12% (down from 14% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Nov 04
Hindustan Composites Limited to Report Q2, 2025 Results on Nov 13, 2024 Hindustan Composites Limited announced that they will report Q2, 2025 results on Nov 13, 2024 Upcoming Dividend • Sep 13
Upcoming dividend of ₹2.00 per share Eligible shareholders must have bought the stock before 20 September 2024. Payment date: 22 October 2024. Payout ratio is a comfortable 8.6% and the cash payout ratio is 77%. Trailing yield: 0.3%. Lower than top quartile of Indian dividend payers (1.0%). Lower than average of industry peers (0.5%). Declared Dividend • Aug 30
Dividend of ₹2.00 announced Dividend of ₹2.00 is the same as last year. Ex-date: 20th September 2024 Payment date: 22nd October 2024 Dividend yield will be 0.3%, which is lower than the industry average of 0.6%. Sustainability & Growth Dividend is covered by both earnings (9% earnings payout ratio) and cash flows (77% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 15% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Aug 28
Hindustan Composites Limited, Annual General Meeting, Sep 27, 2024 Hindustan Composites Limited, Annual General Meeting, Sep 27, 2024, at 11:45 Indian Standard Time. Reported Earnings • Aug 15
First quarter 2025 earnings released: EPS: ₹5.87 (vs ₹6.80 in 1Q 2024) First quarter 2025 results: EPS: ₹5.87 (down from ₹6.80 in 1Q 2024). Revenue: ₹772.0m (up 2.0% from 1Q 2024). Net income: ₹86.7m (down 14% from 1Q 2024). Profit margin: 11% (down from 13% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 22% per year. Announcement • Aug 01
Hindustan Composites Limited to Report Q1, 2025 Results on Aug 14, 2024 Hindustan Composites Limited announced that they will report Q1, 2025 results on Aug 14, 2024 Buy Or Sell Opportunity • Jul 31
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 43% to ₹603. The fair value is estimated to be ₹491, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 21%. Buy Or Sell Opportunity • Jul 09
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 42% to ₹605. The fair value is estimated to be ₹491, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 21%. Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹533, the stock trades at a trailing P/E ratio of 22.9x. Average trailing P/E is 31x in the Auto Components industry in India. Total returns to shareholders of 70% over the past three years. Reported Earnings • Jun 04
Full year 2024 earnings released: EPS: ₹23.30 (vs ₹18.60 in FY 2023) Full year 2024 results: EPS: ₹23.30 (up from ₹18.60 in FY 2023). Revenue: ₹2.99b (up 5.6% from FY 2023). Net income: ₹344.1m (up 25% from FY 2023). Profit margin: 12% (up from 9.7% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • May 30
Hindustan Composites Limited Appoints Arvind Purohit as Company Secretary and Compliance Officer Hindustan Composites Limited at its board meeting held on 29 May 2024, appointed Mr. Arvind Purohit as Company Secretary and Compliance Officer of the Company with effect from May 29, 2024, pursuant to the provisions of Section 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 6 of the Listing Regulations. Mr. Arvind Purohit is an associate member of the Institute of Company Secretaries of India. He has more than 10 years of experience in managing Company Secretarial and Corporate legal matters. He has worked with companies like The Phoenix Mills Limited, Uttam Galva Steels Ltd. etc. Announcement • May 19
Hindustan Composites Limited to Report Q4, 2024 Results on May 29, 2024 Hindustan Composites Limited announced that they will report Q4, 2024 results on May 29, 2024 Announcement • Apr 06
Hindustan Composites Limited Announces Resignation of Ravi Vaishnav as Company Secretary and Compliance Officer Hindustan Composites Limited announced that Mr. Ravi Vaishnav has resigned from the post of Company Secretary and Compliance Officer of the Company with effect from 5th April, 2024 (close of business hours). Announcement • Mar 30
Hindustan Composites Limited Appoints Rajan Arvind Dalal as Non-Executive Independent Director Hindustan Composites Limited on March 29, 2024 appointed Mr. Rajan Arvind Dalal as Non-Executive Independent Director of the Company for a term of upto 5 (five) consecutive years with effect from 21st February, 2024 till 20th February, 2029 by way of passing special resolution through Postal Ballot process as set out in the Postal ballot notice dated 21st February, 2024. Mr. Rajan Dalal has over 50 years of vast experience in running various businesses with varied experience in international and financial markets. He is currently on the board of 2 listed companies namely Century Textiles and Industries Limited and Sutlej Textiles and Industries Limited. He has been associated with various industries and has extensive experience spanning to multiple businesses and varied functions including creating dealer network, wealth management, investment in equity and debt market, capital raising etc. Announcement • Feb 03
Hindustan Composites Limited to Report Q3, 2024 Results on Feb 13, 2024 Hindustan Composites Limited announced that they will report Q3, 2024 results on Feb 13, 2024 Announcement • Jan 28
Hindustan Composites Limited Announces Regarding Fire Incident That Occurred At Bhandara Plant Hindustan Composites Limited informed that an incident of fire was reported at Random wound section of clutch facing at Plant located at Bhandara, Aurangabad. The fire was controlled, but production operation of the said section of the plant is temporarily disrupted. There are no human injuries or casualties reported. Adequate steps are being undertaken to restore the operation of the said section of the plant. The Company is in the process of ascertaining the cause of the fire and the expected quantum of loss/damage caused by it. The Company has adequate insurance coverage for the plant. Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: ₹6.73 (vs ₹1.80 in 2Q 2023) Second quarter 2024 results: EPS: ₹6.73 (up from ₹1.80 in 2Q 2023). Revenue: ₹723.6m (up 17% from 2Q 2023). Net income: ₹99.4m (up 274% from 2Q 2023). Profit margin: 14% (up from 4.3% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year and the company’s share price has also increased by 22% per year. Announcement • Oct 31
Hindustan Composites Limited to Report Q2, 2024 Results on Nov 08, 2023 Hindustan Composites Limited announced that they will report Q2, 2024 results on Nov 08, 2023 Announcement • Oct 01
Hindustan Composites Limited Approves Dividend on the Equity Shares for the Financial Year Ended 31St March, 2023 Hindustan Composites Limited approved declaration of dividend on the Equity Shares of INR 5/- each for the financial year ended 31st March, 2023 at its AGM held on 29th September, 2023. Upcoming Dividend • Sep 15
Upcoming dividend of ₹2.00 per share at 0.4% yield Eligible shareholders must have bought the stock before 22 September 2023. Payment date: 06 October 2023. Payout ratio is a comfortable 11% and this is well supported by cash flows. Trailing yield: 0.4%. Lower than top quartile of Indian dividend payers (1.3%). Lower than average of industry peers (0.8%). Announcement • Sep 03
Hindustan Composites Limited, Annual General Meeting, Sep 29, 2023 Hindustan Composites Limited, Annual General Meeting, Sep 29, 2023, at 11:45 Indian Standard Time. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: ₹6.80 (vs ₹6.69 in 1Q 2023) First quarter 2024 results: EPS: ₹6.80 (up from ₹6.69 in 1Q 2023). Revenue: ₹757.6m (up 2.7% from 1Q 2023). Net income: ₹100.4m (up 1.6% from 1Q 2023). Profit margin: 13% (in line with 1Q 2023). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Aug 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.0% average weekly change). Market cap is less than US$100m (₹6.57b market cap, or US$79.3m). Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₹445, the stock trades at a trailing P/E ratio of 23.9x. Average trailing P/E is 29x in the Auto Components industry in India. Total returns to shareholders of 145% over the past three years. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₹445, the stock trades at a trailing P/E ratio of 23.9x. Average trailing P/E is 29x in the Auto Components industry in India. Total returns to shareholders of 145% over the past three years. Announcement • Aug 03
Hindustan Composites Limited to Report Q1, 2024 Results on Aug 11, 2023 Hindustan Composites Limited announced that they will report Q1, 2024 results on Aug 11, 2023 Announcement • Jul 01
Hindustan Composites Limited Announces Directorate Changes Hindustan Composites Limited at its Board Meeting held on 30th June, 2023 announced Appointment of Mr. Vinay Sarin as an Additional Director of the Company (Non-Executive Non-Independent) with effect from 1st July, 2023, who shall hold office upto the date of upcoming Annual General Meeting of the Company. Appointed Mr. Ravi Vaishnav as Company Secretary and Compliance Officer of the Company with effect from 30th June, 2023. Mr. Vinay Sarin is a Senior Management Professional with about 55 years of diversified experience in both the Consumer, Engineering & the Automobile Industry. He is a Postgraduate with a Masters in Marketing Management and has held senior positions in Sales & Marketing and Business Development during his career during which he has travelled extensively both in India and overseas. He has many years of experience in negotiating with Joint Venture partners and has a successful track record in facilitating overseas JV partnerships and technical collaborations.He is very familiar with the friction materials manufacturing Industry both in India & Overseas and has visited and studied "best in class" manufacturing practices followed in nearly all the large reputable friction material companies worldwide. He has beenassociated with the Company since many years and has served the Company in many capacities from time to time. Presently, Mr. Sarin is a director of Compo Advics (India) Pvt. Ltd. and works closely with the Company's Japanese partners, Advics India Pvt. Ltd., the Indian subsidiary of ADVICS Company Ltd., Japan, the world's third larger brake company and which is owned by Toyota, Aisin Seiki, Denso Corporation & Sumitomo Electric Industries. Mr. Ravi Vaishnav is a B. Com, LLB and an associate member of the Institute of Company Secretaries of India. He has more than 9 years of experience in managing Company Secretarial and Corporate legal matters. Reported Earnings • May 30
Full year 2023 earnings released: EPS: ₹18.60 (vs ₹14.63 in FY 2022) Full year 2023 results: EPS: ₹18.60 (up from ₹14.63 in FY 2022). Revenue: ₹2.84b (up 22% from FY 2022). Net income: ₹274.7m (up 27% from FY 2022). Profit margin: 9.7% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 28
Hindustan Composites Limited Recommends Payment of Dividend for the Financial Year Ended 31 March, 2023 Hindustan Composites Limited Recommended the payment of dividend on Equity Shares of INR 5 each at INR 2 per share for the financial year ended 31st March, 2023, subject To Approve the shareholders in the upcoming Annual General Meeting of the Company. The dividend, if approved at the upcoming Annual General Meeting of the Company, shall be paid/dispatched within 30 days of upcoming Annual General Meeting. The date of Annual General Meeting will be intimated in due course of time. Announcement • May 17
Hindustan Composites Limited to Report Q4, 2023 Results on May 26, 2023 Hindustan Composites Limited announced that they will report Q4, 2023 results on May 26, 2023 Board Change • Mar 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 4 highly experienced directors. Non-Executive Independent Director Preeti Agrawal was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 15
Third quarter 2023 earnings released: EPS: ₹3.68 (vs ₹6.83 in 3Q 2022) Third quarter 2023 results: EPS: ₹3.68 (down from ₹6.83 in 3Q 2022). Revenue: ₹694.6m (up 4.8% from 3Q 2022). Net income: ₹54.3m (down 46% from 3Q 2022). Profit margin: 7.8% (down from 15% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Feb 03
Hindustan Composites Limited to Report Q3, 2023 Results on Feb 13, 2023 Hindustan Composites Limited announced that they will report Q3, 2023 results on Feb 13, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: ₹1.80 (vs ₹2.47 in 2Q 2022) Second quarter 2023 results: EPS: ₹1.80 (down from ₹2.47 in 2Q 2022). Revenue: ₹620.2m (up 23% from 2Q 2022). Net income: ₹26.6m (down 27% from 2Q 2022). Profit margin: 4.3% (down from 7.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: ₹1.80 (vs ₹2.47 in 2Q 2022) Second quarter 2023 results: EPS: ₹1.80 (down from ₹2.47 in 2Q 2022). Revenue: ₹620.2m (up 23% from 2Q 2022). Net income: ₹26.6m (down 27% from 2Q 2022). Profit margin: 4.3% (down from 7.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 24% per year. Upcoming Dividend • Sep 14
Upcoming dividend of ₹5.00 per share Eligible shareholders must have bought the stock before 21 September 2022. Payment date: 29 October 2022. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 0.5%. Lower than top quartile of Indian dividend payers (1.5%). In line with average of industry peers (0.6%). Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improved over the past week After last week's 15% share price gain to ₹356, the stock trades at a trailing P/E ratio of 18.8x. Average trailing P/E is 23x in the Auto Components industry in India. Total returns to shareholders of 97% over the past three years. Reported Earnings • Aug 14
First quarter 2023 earnings released: EPS: ₹6.69 (vs ₹2.35 in 1Q 2022) First quarter 2023 results: EPS: ₹6.69 (up from ₹2.35 in 1Q 2022). Revenue: ₹738.4m (up 50% from 1Q 2022). Net income: ₹98.8m (up 185% from 1Q 2022). Profit margin: 13% (up from 7.0% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 30
Full year 2022 earnings released: EPS: ₹14.63 (vs ₹13.36 in FY 2021) Full year 2022 results: EPS: ₹14.63 (up from ₹13.36 in FY 2021). Revenue: ₹2.33b (up 26% from FY 2021). Net income: ₹216.0m (up 9.5% from FY 2021). Profit margin: 9.3% (down from 11% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 11% per year. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment improved over the past week After last week's 18% share price gain to ₹322, the stock trades at a trailing P/E ratio of 21.1x. Average trailing P/E is 22x in the Auto Components industry in India. Total returns to shareholders of 49% over the past three years. Reported Earnings • Feb 11
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: ₹6.83 (up from ₹3.30 in 3Q 2021). Revenue: ₹663.4m (up 29% from 3Q 2021). Net income: ₹100.8m (up 107% from 3Q 2021). Profit margin: 15% (up from 9.5% in 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 09
First quarter 2022 earnings released: EPS ₹2.35 (vs ₹1.27 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: ₹492.5m (up 61% from 1Q 2021). Net income: ₹34.7m (up 86% from 1Q 2021). Profit margin: 7.0% (up from 6.1% in 1Q 2021). Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improved over the past week After last week's 16% share price gain to ₹359, the stock trades at a trailing P/E ratio of 26.9x. Average trailing P/E is 31x in the Auto Components industry in India. Total loss to shareholders of 7.7% over the past three years. Reported Earnings • May 29
Full year 2021 earnings released: EPS ₹13.35 (vs ₹7.09 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: ₹1.91b (up 7.1% from FY 2020). Net income: ₹197.2m (up 88% from FY 2020). Profit margin: 10% (up from 5.9% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 8% per year. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 16% share price gain to ₹332, the stock trades at a trailing P/E ratio of 29.5x. Average trailing P/E is 28x in the Auto Components industry in India. Total loss to shareholders of 18% over the past three years. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment improved over the past week After last week's 30% share price gain to ₹294, the stock is trading at a trailing P/E ratio of 29.2x, up from the previous P/E ratio of 22.5x. This compares to an average P/E of 35x in the Auto Components industry in India. Total return to shareholders over the past three years is a loss of 44%. Is New 90 Day High Low • Jan 08
New 90-day high: ₹245 The company is up 24% from its price of ₹197 on 09 October 2020. The Indian market is up 20% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Auto Components industry, which is up 26% over the same period. Is New 90 Day High Low • Dec 16
New 90-day high: ₹235 The company is up 24% from its price of ₹190 on 17 September 2020. The Indian market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Auto Components industry, which is up 18% over the same period. Valuation Update With 7 Day Price Move • Nov 14
Market bids up stock over the past week After last week's 25% share price gain to ₹225, the stock is trading at a trailing P/E ratio of 22.4x, up from the previous P/E ratio of 17.9x. This compares to an average P/E of 30x in the Auto Components industry in India. Total return to shareholders over the past three years is a loss of 51%. Is New 90 Day High Low • Nov 11
New 90-day high: ₹220 The company is up 19% from its price of ₹186 on 13 August 2020. The Indian market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Auto Components industry, which is up 6.0% over the same period. Reported Earnings • Nov 08
Second quarter 2021 earnings released: EPS ₹5.15 The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ₹505.9m (up 18% from 2Q 2020). Net income: ₹76.0m (up 257% from 2Q 2020). Profit margin: 15% (up from 5.0% in 2Q 2020). The increase in margin was driven by higher revenue.