HMT (HMT)
TurnaroundFairStock Score: 8/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹58.74 |
| Market Cap | ₹7,072.83 Cr |
| P/E Ratio | 0 |
| ROCE | 0% |
| ROE | 3.86% |
| Dividend Yield | 0% |
| Profit Growth | -9.31% |
| Debt/Equity | — |
| Sales Growth | 79.6% |
| Promoter Holding | 93.69% |
| 52-Week Range | ₹41 — ₹72.95 |
| Sector | Industrial Manufacturing |
| Book Value | ₹4.04 |
Strengths
- High promoter holding of 93.69% provides ownership stability and no risk of hostile takeover.
- Positive book value of ₹4.04 per share, though small, indicates some tangible net assets remain.
- 52-week range of ₹41.00 to ₹72.95 shows the stock has trading liquidity and investor interest.
- The company is in the industrial products sector, which can benefit from infrastructure cycles if managed well.
Concerns
- Latest quarter net loss of ₹27 Cr against sales of ₹21 Cr indicates severe operational distress.
- Sales growth declined 28.64% and profit growth is down 9.31%, showing a shrinking business.
- Piotroski F-Score of 2/9 and ROCE of 0% point to very poor financial health and capital efficiency.
- P/B of 15.63 against book value of ₹4.04 means the stock is extremely expensive for the underlying asset quality.
AI Analysis
When I look at HMT, the first thing I see is a business that is losing money while its operations are shrinking. The latest quarter shows a net loss of ₹27 Cr on sales of just ₹21 Cr, meaning the core business is deeply impaired. Sales growth has fallen by 28.64%, profit growth is down 9.31%, and ROCE is zero. The Piotroski F-Score of 2 out of 9 confirms very poor financial health. Book value is ₹4.04 per share, yet the market price is ₹63.15 — a price-to-book of 15.6. That is absurd for a company with no earnings and a P/E of zero. Even the reported ROE of 3.86% looks meaningless when the latest quarter is deeply negative. As Graham said, price is what you pay, value is what you get. Here I see no value, no margin of safety. Promoter holding of 93.69% gives stability, but it also means the public float is tiny and market trading may be speculative. There is no dividend, no revenue growth, and no sign of a competitive moat. This is a classic value trap disguised by a low absolute share price. I would not invest here unless there is concrete evidence of a turnaround — a clear plan, improving sales, and a path to positive profits. Investing in HMT today would be speculation, not investing. I would rather wait for a business that earns good returns on tangible capital and shows a track record of profitability.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer