Tam Expansion Changing Consumption
Expected: FY28HIGH confidence
What: Revenue Target: ₹1,000+ Cr by FY28
Impact: Topline growth
Hindustan Composites Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +14.4%Average4w Streak
In , Hindustan Composites Ltd (Auto Ancillaries - Axle & Brakes) is outperforming Nifty 500 with +14.4% relative strength. Fundamentals: Average. On a 4-week streak.
Hindustan Composites Ltd Key Facts
- PE Ratio
- 20.5x
- Market Cap
- ₹676 Cr
- PAT Growth YoY
- +100%
- Revenue Growth YoY
- +18%
- OPM
- 16.0%
- RS vs Nifty 500
- +14.4%
PE: Mid ContractionFalling Knife
What's Happening
🔻Earnings declining and PE falling — fundamentals deteriorating
📊Debt increased 50% YoY — leverage rising
💰Trading 67% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Tam Expansion Changing Consumption
FY28HIGH
2. Operating Leverage Inflection
FY26-27MEDIUM
Key Risks
1. Company faces a total penalty of ₹1
LOW2. Implementation of new labour codes resulted in exceptional items impacting PAT
MEDIUM3. Settlement with Krantikari Kamgar Union involving a ₹12 crore payment to resolve
HIGHSector-Specific Signals
Composite Products Revenue₹81.38 crore14.3%
Investment Segment Revenue₹8.24 crore-22.7%
Trading in Commodity Revenue₹4.89 croreNot Given
Employee Cost % of Revenue12.9%
Key Numbers
PAT Growth YoY
+100%
Inflection Up
Revenue YoY
+18%
Accelerating
Operating Margin
16.0%
-200 bps YoY
PE Ratio
20.5
Current Price
₹458
Dividend Yield
0.44%
Fundamental Score
43/100
Average
3Y PAT CAGR
+5%
Market Cap
683 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Hindustan Composites Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Operating Leverage Inflection
Expected: FY26-27MEDIUM confidence
What: EBITDA Margin: 22%
Impact: Margin expansion
What Are the Key Risks for Hindustan Composites Ltd?
Earnings deceleration risks from management commentary
Company faces a total penalty of ₹1
LOWTrigger: Company faces a total penalty of ₹1.8 lakh for non-compliance with SEBI Regulation 17(1A) and delayed results submission.
Impact: PAT impact: ₹1.82 lakh
Management view: Company is exploring further options while committing to pay the outstanding amount within prescribed timelines.
Monitor: regulatory
Implementation of new labour codes resulted in exceptional items impacting PAT
MEDIUMTrigger: Implementation of new labour codes resulted in exceptional items impacting PAT.
Impact: PAT impact: ₹2.91 lakhs
Management view: Not Given
Monitor: labor
Settlement with Krantikari Kamgar Union involving a ₹12 crore payment to resolve
HIGHTrigger: Settlement with Krantikari Kamgar Union involving a ₹12 crore payment to resolve disputes.
Impact: PAT impact: ₹12 crore
Management view: Reached an out-of-court settlement for full and final settlement of all disputes.
Monitor: litigation
What Did Hindustan Composites Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹94.51 crore
YoY +15.5%QoQ +6.69%
Revenue growth was driven by the core Composite Products segment which contributed ₹81.38 crore during the quarter.
EBITDA
₹11.92 crore
YoY -26.15%Margin 12.61%
Operating profit margins were pressured by a 21.1% YoY increase in total expenses, reaching ₹82.73 crores.
PAT
₹6.67 crore
YoY -39.2%QoQ +26.33%
PAT was impacted by exceptional items of ₹2.91 lakhs related to new labour code implementation and higher operating costs.
Other Highlights
• Exceptional items of ₹2.91 lakhs recorded for new labour codes implementation.
• Total expenses rose 21.1% YoY to ₹82.73 crores.
• Investment segment revenue declined to ₹8.24 crore from ₹10.66 crore YoY.
What Sector Metrics Matter for Hindustan Composites Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Composite Products Revenue
₹81.38 crore
YoY 14.3%
Why: Composite Products remained the largest revenue contributor, growing from ₹71.17 lakhs in Q3FY25.
Investment Segment Revenue
₹8.24 crore
YoY -22.7%
Why: The segment generated lower returns compared to the previous year's ₹10.66 crore.
Trading in Commodity Revenue
₹4.89 crore
YoY Not Given
Why: Not explained in source
Employee Cost % of Revenue
12.9%
Why: Historical benchmark for the year ending Mar 31, 2025.
Interest Expense % of Revenue
<1%
Why: Historical benchmark for the year ending Mar 31, 2025.
What Is Hindustan Composites Ltd's Management Guidance?
Forward-looking targets from management for FY26
OPM Guidance
22%
Capex Plan
₹4.8 Cr
Revenue Outlook
₹350 crore
Margin Outlook
Aiming to sustain 22% EBITDA margin
Capex Plan
₹4.8 crore
Capacity Expansion
Management Tone: BULLISH
How Fast Is Hindustan Composites Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +18% | +10% | Accelerating |
| PAT (Net Profit) | +100% | +5% | Inflection Up |
| OPM | 16.0% | -200 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Frequently Asked Questions: Hindustan Composites Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Hindustan Composites Ltd's latest quarterly results?
Hindustan Composites Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +100.0% (turning around (inflection up))
- Revenue Growth YoY: +18.0%
- Operating Margin: 16.0% (volatile)
Is Hindustan Composites Ltd's profit growing or declining?
Hindustan Composites Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +100.0% (latest quarter)
- PAT Growth QoQ: +71.4% (sequential)
- 3-Year PAT CAGR: +4.7%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Hindustan Composites Ltd's revenue growth trend?
Hindustan Composites Ltd's revenue growth trend is accelerating.
- Revenue Growth YoY: +18.0%
- Revenue Growth QoQ: +10.5% (sequential)
- 3-Year Revenue CAGR: +9.8%
How is Hindustan Composites Ltd's operating margin trending?
Hindustan Composites Ltd's operating margin is volatile.
- Current OPM: 16.0%
- OPM Change YoY: -2.0% basis points
- OPM Change QoQ: 0.0% basis points
What is Hindustan Composites Ltd's 3-year profit and revenue CAGR?
Hindustan Composites Ltd's long-term compounding rates
- 3-Year Profit CAGR: +4.7%
- 3-Year Revenue CAGR: +9.8%
Is Hindustan Composites Ltd's growth accelerating or decelerating?
Hindustan Composites Ltd's earnings growth is turning around (inflection up) with improving on a sequential basis.
- YoY Acceleration: +136.4% bps
- Sequential Acceleration: +10.0% bps
What is Hindustan Composites Ltd's trailing twelve month (TTM) performance?
Hindustan Composites Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹31 Cr
- TTM PAT Growth: -11.4% YoY
- TTM Revenue: ₹376 Cr
- TTM Revenue Growth: +15.7% YoY
- TTM Operating Margin: 15.1%
Is Hindustan Composites Ltd overvalued or undervalued?
Hindustan Composites Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 20.5x
- Price-to-Book: 0.6x
What is Hindustan Composites Ltd's current PE ratio?
Hindustan Composites Ltd's current PE ratio is 20.5x.
- Current PE: 20.5x
- Market Cap: 676 Cr
- Dividend Yield: 0.44%
How does Hindustan Composites Ltd's valuation compare to its history?
Hindustan Composites Ltd's current PE is 20.5x.
- Current PE: 20.5x
- Valuation Assessment: Significantly Overvalued
What is Hindustan Composites Ltd's price-to-book ratio?
Hindustan Composites Ltd's price-to-book ratio is 0.6x.
- Price-to-Book (P/B): 0.6x
- Book Value per Share: ₹775
- Current Price: ₹458
Is Hindustan Composites Ltd a fundamentally strong company?
Hindustan Composites Ltd is rated Average with a fundamental score of 42.56/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +18.0% (10% weight)
- PAT Growth YoY: +100.0% (10% weight)
- PAT Growth QoQ: +71.4% (10% weight)
- Margins stable (10% weight)
Is Hindustan Composites Ltd debt free?
Hindustan Composites Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹2 Cr
What is Hindustan Composites Ltd's return on equity (ROE) and ROCE?
Hindustan Composites Ltd's return ratios over recent years
- FY2024: ROCE 5.0%
- FY2025: ROCE 5.0%
- FY2026: ROCE 4.0%
Is Hindustan Composites Ltd's cash flow positive?
Hindustan Composites Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹21 Cr
- Free Cash Flow (FCF): ₹-9 Cr
- CFO/PAT Ratio: 68% (adequate)
What is Hindustan Composites Ltd's dividend yield?
Hindustan Composites Ltd's current dividend yield is 0.44%.
- Dividend Yield: 0.44%
- Current Price: ₹458
Who holds Hindustan Composites Ltd shares — promoters, FII, DII?
Hindustan Composites Ltd's shareholding pattern (Mar 2026)
- Promoters: 75.0%
- FII (Foreign): 0.0%
- DII (Domestic): 0.0%
- Public: 25.0%
Is promoter holding increasing or decreasing in Hindustan Composites Ltd?
Hindustan Composites Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 75.0% (Mar 2026)
- Previous Quarter: 75.0% (Dec 2025)
- Change: 0.00% (stable)
How long has Hindustan Composites Ltd been outperforming Nifty 500?
Hindustan Composites Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is Hindustan Composites Ltd a new momentum entry or an established outperformer?
Hindustan Composites Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Hindustan Composites Ltd?
Hindustan Composites Ltd has 2 key growth catalysts identified from recent earnings analysis
- Tam Expansion Changing Consumption — Aggressive revenue scaling targets suggest significant market expansion.
- Operating Leverage Inflection — Sustaining high margins while scaling revenue will drive profitability.
What are the key risks in Hindustan Composites Ltd?
Hindustan Composites Ltd has 3 key risks worth monitoring
- [LOW] Company faces a total penalty of ₹1 — Company faces a total penalty of ₹1.8 lakh for non-compliance with SEBI Regulation 17(1A) and delayed results submission.
- [MEDIUM] Implementation of new labour codes resulted in exceptional items impacting PAT — Implementation of new labour codes resulted in exceptional items impacting PAT.
- [HIGH] Settlement with Krantikari Kamgar Union involving a ₹12 crore payment to resolve — Settlement with Krantikari Kamgar Union involving a ₹12 crore payment to resolve disputes.
What is Hindustan Composites Ltd's management guidance for growth?
Hindustan Composites Ltd's management has provided the following forward guidance for FY26
- Revenue outlook: ₹350 crore
- OPM guidance: 22%
- Capex plan: ₹4.8 Cr for Capacity Expansion
- Management tone: bullish
What sector-specific metrics matter most for Hindustan Composites Ltd?
Hindustan Composites Ltd's most important sub-sector-specific KPIs from the latest concall
- Composite Products Revenue: ₹81.38 crore (YoY 14.3%) — Composite Products remained the largest revenue contributor, growing from ₹71.17 lakhs in Q3FY25.
- Investment Segment Revenue: ₹8.24 crore (YoY -22.7%) — The segment generated lower returns compared to the previous year's ₹10.66 crore.
- Trading in Commodity Revenue: ₹4.89 crore (YoY Not Given) — Not explained in source
- Employee Cost % of Revenue: 12.9% — Historical benchmark for the year ending Mar 31, 2025.
- Interest Expense % of Revenue: <1% — Historical benchmark for the year ending Mar 31, 2025.
Is Hindustan Composites Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Hindustan Composites Ltd may be worth studying
- Earnings growing at +100.0% YoY
- Revenue growth is accelerating — +18.0% YoY
- Cash flow is positive — CFO ₹21 Cr
What is the investment thesis for Hindustan Composites Ltd?
Hindustan Composites Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +18.0% YoY
- Growth catalyst: Tam Expansion Changing Consumption
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Company faces a total penalty of ₹1
What is the future outlook for Hindustan Composites Ltd?
Hindustan Composites Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: accelerating
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Tam Expansion Changing Consumption
- Key Risk: Company faces a total penalty of ₹1
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.