HMT Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

HMT Ltd trades at ₹61.8, in a confirmed uptrend and 15 weeks into that stage. That is +6.3% against its own 200-day average. It sits at 71% of a 52-week range of ₹42 to ₹70. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 7 straight weeks.

Today the stock is in a confirmed uptrend — week 15 of stage 2, confirmed. At ₹61.8 it trades +6.3% versus its 200-day average and sits at 71% of its 52-week range (₹42–₹70).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +30% while the NIFTY 500 moved +272% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 7 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 90th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

HMT Ltd trades at 11.8× P/E, at the pricey end of its own range (90th percentile). Its long-run median P/E is 9.0×, measured across 1.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 11.8× is at the pricey end of its own range (90th percentile), against a long-run median of 9.0× measured over 1.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −105.6% against a −2.3% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

HMT Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue and EPS growth are shrinking (revenue growth −26.3% latest against +53.4% at its 12-quarter best). The read is built from 12 quarters across 3 curves, on partial evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

The latest quarter’s profit carries a one-off item larger than the operating base, so the profit curve is shown but does not vote in the stage call.

The return-on-capital curve is not shown — net worth is negative, so a return on capital is not a meaningful number in any basis. This is a distressed balance sheet, and the stage is read from the growth curves alone.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

42.3/100 — rank 3 of 4 in Auto - Tractors · 62% evidence confidence

HMT Ltd scores 42.3 out of 100 against the 4 companies it is compared with in Auto - Tractors, ranking 3. Price leads the evidence: RS versus the benchmark is 8.3%, but earnings trajectory is weak. Wait for revenue and profit confirmation.

The four contributions add to the total exactly: 11 + 3.8 + 10 + 17.5 = 42.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

HMT Ltd reported ₹21.0 Cr of revenue in the Dec 25 quarter, −27.6% year on year. Over 10 years it has compounded at −6.4% a year. The last full year, FY25, came in at ₹142 Cr. The last four reported quarters add to ₹112 Cr.

HMT Ltd reported ₹21.0 Cr of revenue in the Dec 25 quarter, −27.6% year on year. Over 10 years it has compounded at −6.4% a year. The last full year, FY25, came in at ₹142 Cr. The last four reported quarters add to ₹112 Cr.

FY25 revenue came in at ₹142 Cr (−12.9% on the year), capping 10 years at −6.4% compound. The latest quarter (Dec 25) printed ₹21.0 Cr, −27.6% year on year.

Pace check: the last four quarters averaged −26.5% growth against the decade's −6.4% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −26.3% over the last 4 quarters against −29.0%/yr over the last 8 — stabilising.

→ Revenue slipped — did margins hold as it scaled? Next: −111.0% this quarter (−54.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

HMT Ltd's operating margin is −111.0% in the Dec 25 quarter, −54.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −283.0% to −5.0%. The current quarter sits inside that band.

HMT Ltd's operating margin is −111.0% in the Dec 25 quarter, −54.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −283.0% to −5.0%. The current quarter sits inside that band.

The latest quarter's operating margin is −111.0%, −54.0 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −283.0%–−5.0%.

🚨 Why the margin moved: operating margin went −53.6 pp year on year while gross margin went +13.7 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins slipped — did that reach the bottom line? Next: profit null in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

HMT Ltd posted a net loss of ₹27.0 Cr in the Dec 25 quarter. That quarter carries a one-off item larger than its own revenue, so the year-on-year figure is an artefact rather than a trading result. The full FY25 year was a loss of ₹143 Cr. That loss is 128.6% of the quarter's revenue.

HMT Ltd posted a net loss of ₹27.0 Cr in the Dec 25 quarter. That quarter carries a one-off item larger than its own revenue, so the year-on-year figure is an artefact rather than a trading result. The full FY25 year was a loss of ₹143 Cr. That loss is 128.6% of the quarter's revenue.

Dec 25 profit was ₹−27.0 Cr, null year on year. On the full year, FY25 printed ₹−143 Cr (−105.6%).

🚨 Read this profit with care: at ₹−27.0 Cr it is larger than the whole quarter's revenue of ₹21.0 Cr — no operating business earns more than it sells, so this is a one-off item (a debt-to-equity conversion, a tax write-back or an asset sale), not money the business earned. The underlying operations are running at −111.0% operating margin; the year-on-year jump and any P/E built on this number are artefacts of the one-off, not a real earnings turn.

→ Profit rose — but did the cash follow? Next: −36% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −36% of HMT Ltd's reported profit arrived as operating cash — a gap worth watching. In FY25 that was ₹−46.0 Cr of operating cash against ₹−143 Cr of profit. After ₹2.0 Cr of capital spending, ₹−48.0 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY25: operating cash of ₹−46.0 Cr against reported profit of ₹−143 Cr, leaving free cash of ₹−48.0 Cr after ₹2.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −36% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −36%: the cash cycle tightened 77 days between FY20 and FY25 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 483-day cycle and ₹2.0 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

HMT Ltd's cash conversion cycle runs 483 days in FY25, down from 560 days in FY20. Capital spending ran ₹2.0 Cr over the last 3 years. At FY25 sales of ₹142 Cr each day of that cycle holds about ₹0.4 Cr, so roughly ₹188 Cr sits inside the business at any moment.

FY25: debtors at 318 days, inventory at 640 days — roughly 21.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 483 days, tighter than FY20's 560.

The full loop: cash goes out to suppliers and production on day 0; stock waits 640 days to sell; customers pay about 318 days after that; and suppliers themselves are paid at 476 days — netting out to the 483-day cycle.

In money terms: at FY25 sales of ₹142 Cr, each day of the cycle holds about ₹0.4 Cr — so the 483-day loop keeps roughly ₹188 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹2.0 Cr over the last 3 fiscal years against ₹24.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹2.0 Cr (FY25) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 2%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

HMT Ltd earns a ROCE of 2% in FY25. That is up from a trough of −52% in FY17. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is −100.7% net margin on 0.26× asset turns.

FY25 ROCE is 2%, recovered from a FY17 trough of −52% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY25): −100.7% net margin × 0.26× asset turns × −0.29× balance-sheet leverage ≈ 7.6% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is −0.54.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

HMT Ltd's net worth is negative — it owes more than it owns — so a debt-to-equity ratio is not meaningful here. On the annual view that ratio went from −0.80 in FY21 to −0.56 in FY25. The returns elsewhere on this page are therefore earned rather than borrowed.

Dec 25: total debt of ₹1,029 Cr against shareholder equity of ₹−1,966 Cr — a debt-to-equity of −0.52. On the annual view, debt-to-equity went from −0.80 (FY21) to −0.56 (FY25). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of HMT Ltd moved a full percentage point over the last two years — the register is quiet. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +0.0 points over 8 quarters to 93.7%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

HMT Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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