Hi, today we are discussing HP Adhesives Ltd.’s share price target from 2024 to 2030. In this blog post, we are predicting HP Adhesives Ltd.’s share price prediction based on its fundamental analysis, analysis, and major ratio analysis. after reading this article you will get a clear picture of HP Adhesives Ltd’s Future Growth.
Overview of HP Adhesives Ltd. (HPAL)
HP Adhesives Ltd. is a small-cap company incorporated in 1978 in Mumbai by Mr. Harish Motwani.
It is a leading Indian manufacturer of adhesives and sealants, boasts, and solvent cement.
In 2019 the company was converted into a private limited company under the name HP Adhesives Private Limited.
Presently the companies are recognized as the largest manufacturer of solvent Cement in Asia offering a divorce range of adhesives and solvents for various industries.
The company is serving nearly 40 countries throughout the world.
The company also entered in fields of Textiles, logistics, real estate, and engineering.
Management of HP Adhesives Ltd. (HPAL)
Managing Director: Mr. Karan Harish Motwani is a managing director of the company who holds a bachelor’s degree in Management Studies from Narsee Monjee Institute of Management Studies Mumbai and a postgraduate program in management from SP Jain Institute of Management and Research Mumbai. He played a major role in the company’s expansion and diversification, new products, and growth of the distribution network.
Chairman and non-executive director:
Chairman of the company is Mr. Harish Motwani a founder of HP Adhesives Ltd. with over 40 years of experience in the adhesives industry.
HP Adhesives Ltd. product portfolio
Solvent cements: one of the largest manufacturer of solvent Cement in Asia and their flagship product, Strong Weld, is a householder name in India.
Silicon Sealants: some popular options include HP Silicon sealant neutral, HP Silicon sealant sanitary, and HP high-temperature Silicon sealant.
Contact Adhesives: These are ideal for bonding a variety of materials including rubber, wood, metal, and fabric. They offer strong instant bonding and are resistant to solvents and heat.
Some popular brands are Super Bond HP multipurpose Bond and HP Spray Bond.
Peer Competitors of HP Adhesives Ltd.(HPAL)
SRF Limited.
Linde India Limited
Gujarat fluorochemicals Limited
Deepak nitrate Limited
Pidilite Industries Limited
Fevicol Limited
Asian Paints Limited
Essentials of HP Adhesives Ltd.(HPAL)
| Market Cap | 1152.57 Cr. |
| PE | 60.60 |
| PB | 6.84 |
| Dividend Yield | 0% |
| Book Value | 17.21 |
| Cash | 1.4 Cr. |
| DEBT | 4.63 Cr. |
| EPS | 1.82 |
| ROE | 7.60% |
| ROCE | 11.41% |
| Sales Growth | 41.55% |
| Profit Growth | 80.77% |
Fundamental analysis of HP Adhesives Ltd.(HPAL)
Strength
HAPL has shown consistent revenue and profit growth over the first few years exceeding 40% annually which indicates a strong and expanding market share.
The company maintains a healthy Profitability with a 40% operating margin and the company is Virtually debt-free, indicating efficient Financial Management and low risk.
The company has a high current ratio exceeding 3, indicating good liquidity and ability to meet its shorter obligations.
The cash conversation cycle of the company is 65 days which indicates the efficient inventory and working capital management of the company.
Weaknesses
The company does not offer any dividend to itself holders which might be attractive for income-seeking investors.
The inventory turnover ratio could be improved, which indicates the potential for efficiency in its inventory management.
Financial analysis of HP Adhesives Ltd.(HPAL)
HAPL consistent double-digit revenue and profit growth over the past few years which exceeds industry averages and indicates significant Market extension.
The company has a high EBITDA and net profit margin demonstrating efficient operations and strong cost control.
HAPL generates a healthy return on equity for its shareholders.
Major Ratio Analysis of HP Adhesives Ltd. (HPAL)
Profitability Ratios:
The revenue growth of the company is 41.55% which indicates strong and consistent growth, exceeding industry averages.
The EBITDA margin of the company is 12%, indicating excellent profitability and operational efficiency.
Net profit margin of the company is 7.12% which indicates a good return on sales but lower than EBITDA margin.
The return on equity is 11.32% indicating a healthy return on shareholder’s investment.
Liquidity and Solvency Ratios:
The current ratio of the companies is 3.21 which indicates excellent liquidity, exceeding the industry average.
The debt-to-equity ratio of the company is zero means the company is Virtually debt-free, indicating low financial risk.
Efficiency Ratios:
The inventory turnover ratio of the company is 5.42 which is lower than the industry average, suggesting potential for improvement in inventory management.
Market Ratios:
The PE ratio of the company is 60.60 which is relatively high compared industry average, indicating the stock is overvalued.
The price-to-book ratio of the company ages 6.84 which is a reasonable valuation based on book value.
Dividend history of HP Adhesives Ltd. (HPAL)
The company did not pay any dividend to its share your dress in the past 5 years because the company has chosen to reinvest its earnings back into the business for expansion and development.
Shareholding Pattern of HP Adhesives Ltd.
| Shareholding Category | % Shareholding |
| Promoters & Promoter Group | 71.35% |
| Foreign Institutional Investors (FIIs) | 0.71% |
| Domestic Institutional Investors (DIIs) | 3.72% |
| Public (Non-Institutional) | 24.22% |
HP Adhesives Ltd. (HPAL) Share Price Targets
| Year | Minimum | Maximum |
| 2024 | 114 | 171 |
| 2025 | 146 | 238 |
| 2030 | 505 | 749 |
HP Adhesives Ltd. (HPAL) Share Price Target 2024
The stock is up trend as per technical analysis. We are expecting to continue its rally in favorable conditions so we are expecting HP Adhesives Ltd. (HPAL) Share Price Target for 2024 will be a minimum of 114 and a maximum of 171.
HP Adhesives Ltd. (HPAL) Share Price Target 2025
We are expecting the micro economy and macro economy in stable condition and as the growth of the real estate business will boost the business we are expecting the HP Adhesives Ltd. (HPAL) Share Price Target for 2025 will be a minimum of 146 and a maximum of 238.
HP Adhesives Ltd. (HPAL) Share Price Target 2030
The company has strong financial performance with high profitability, robust liquidity, and low financial risk with an experienced management team which indicates that the company will grow in the future so we are expecting the HP Adhesives Ltd. (HPAL) Share Price Target for 2030 will be minimum of 505 and maximum of 749.
Read More: Infibeam Share Price Target
Conclusion:
HP Adhesives Ltd. (HPAL) has strong fundamentals and technical as per the analysis. The developing real estate business will boost the business in the future. The company has a global presence in over 40 countries which indicates a strong client base of the company. So overall the company is developing company as per fundamental analysis. So before investment consider all market conditions and sector trends. The information is only for information purposes. If you like this article rate us.
FAQ:
What are the products of HP Adhesives Ltd?
The products of HP Adhesives Ltd are Wood Adhesives, solvent cements, Silicon Sealants and Contact Adhesives.
Who is the CEO of the HP Adhesives?
Mr. Karan Harish Motwani is a managing director and CEO of HP Adhesives.
Who are the HP Adhesives Competitors?
Competitors of HP Adhesives Ltd.
SRF Limited.
Linde India Limited
Gujarat fluorochemicals Limited