Hindprakash Indu (HPIL)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹125.05 |
| Market Cap | ₹142.86 Cr |
| P/E Ratio | 52.1 |
| ROCE | 5.23% |
| ROE | 5.18% |
| Dividend Yield | 0% |
| Profit Growth | 391.8% |
| Debt/Equity | 0.6 |
| Sales Growth | -20.2% |
| Promoter Holding | 74.85% |
| 52-Week Range | ₹107 — ₹158 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹47.75 |
Strengths
- High promoter holding of 74.85% indicates strong insider alignment.
- Sales growth of 11.29% shows business expansion in a cyclical industry.
- Piotroski F-score of 7/9 points to improving fundamentals and balance sheet health.
- Debt/equity of 0.73 is within tolerable limits, reducing financial distress risk.
Concerns
- Extremely high P/E of 131.83 and PEG of 4.83 imply an overvalued stock relative to actual earnings.
- ROE of 2.14% and ROCE of 5.23% reflect poor capital efficiency for shareholders.
- Latest quarter net profit of ₹0 Cr against ₹23 Cr sales shows earnings volatility and thin margins.
- Zero dividend yield offers no compensation while waiting for growth.
AI Analysis
When I look at Hindprakash Indu, I see a business that demands discipline. At ₹136.10 with a market cap of ₹144 Cr, the market is paying a P/E of 131.83 for a company that earned just over a crore in profit. That translates to a return on equity of only 2.14% and a return on capital employed of 5.23%. As Graham would say, price is what you pay; value is what you get. Here, you are paying roughly three times book value of ₹44.03 for a business whose latest quarter sales of ₹23 Cr produced net profit of zero. The profit growth of 43.33% sounds impressive, but it comes off a very low base. Meanwhile, the PEG ratio of 4.83 tells me the market has already priced in a great deal of future success. The debt-to-equity ratio of 0.73 is manageable, and the Piotroski F-score of 7/9 suggests some recent improvement in operations. Promoter holding at 74.85% is reassuring, as their interests are aligned with mine. But this is a cyclical dyes and pigments player, not a predictable compounder. With no dividend, a tiny profit base, and extreme valuation, I would not rush in. I need to see sustained margin expansion and consistent quarterly profits before I consider this a serious value proposition. For now, it fails my margin of safety test.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer