HP Adhesives Intrinsic Value
HPAL • Chemicals
Current Stock Price
₹31.46
Primary Intrinsic Value
₹18.24
Market Cap
₹56.6 Cr
+88.0%
Upside
Median Value
₹59.13
Value Range
₹10 - ₹79
Assessment
Trading Below Calculated Value
Safety Margin
46.8%
HPAL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹18.24 | ₹14.59 - ₹21.89 | -42.0% | EPS: ₹1.52, Sector P/E: 12x |
| Book Value Method | asset | ₹78.65 | ₹70.79 - ₹86.52 | +150.0% | Book Value/Share: ₹102.22, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹62.92 | ₹56.63 - ₹69.21 | +100.0% | Revenue/Share: ₹146.67, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹62.92 | ₹56.63 - ₹69.21 | +100.0% | EBITDA: ₹28.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹51.58 | ₹41.26 - ₹61.90 | +64.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹9.73 | ₹8.76 - ₹10.70 | -69.1% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹12.52 | ₹11.27 - ₹13.77 | -60.2% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹62.92 | ₹56.63 - ₹69.21 | +100.0% | ROE: 8.7%, P/E Multiple: 10x |
| Graham Defensive Method | conservative | ₹59.13 | ₹53.22 - ₹65.04 | +88.0% | EPS: ₹1.52, BVPS: ₹102.22 |
Method Types:
Earnings
Asset
DCF
Growth
Dividend
Conservative
Valuation Comparison Chart
HPAL Intrinsic Value Analysis
What is the intrinsic value of HPAL?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of HP Adhesives (HPAL) is ₹59.13 (median value). With the current market price of ₹31.46, this represents a +88.0% variance from our estimated fair value.
The valuation range spans from ₹9.73 to ₹78.65, indicating ₹9.73 - ₹78.65.
Is HPAL undervalued or overvalued?
Based on our multi-method analysis, HP Adhesives (HPAL) appears to be trading below calculated value by approximately 88.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 74.00 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 8.7% | Industry Standard: 15%+ | Below 10% | Measures shareholder return efficiency |
| Operating Margin | 9.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.16x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for HP Adhesives
Additional stock information and data for HPAL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹10 Cr | ₹6 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹22 Cr | ₹15 Cr | Positive Free Cash Flow | 8/10 |