HP Adhesives

: HPAL · Specialty Chemicals

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Snapshot

Unlock HP Adhesives's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

HP Adhesives Ltd is a specialty chemicals company that manufactures and distributes a diverse range of adhesives and sealants, including solvent cements, synthetic rubber adhesives, and PVA adhesives. The company also engages in the trading of ancillary products such as ball valves, PTFE, and masking tape.

Business Model

The company generates revenue through the manufacturing and sale of industrial and consumer adhesive products, complemented by a trading portfolio of related hardware and sealing solutions.

Growth Outlook

Growth is expected to be driven by the expansion of its product portfolio in the adhesives and sealants segment and increasing demand for ancillary construction and industrial chemicals.

Key Risks

  • Raw Material Price Volatility. Fluctuations in the prices of petrochemical-based raw materials can significantly impact the company's operating margins.
  • Competitive Intensity. The adhesives and sealants market is highly competitive, with pressure from both large established players and unorganised local manufacturers.
  • Supply Chain Dependency. Reliance on external suppliers for traded ancillary products exposes the company to potential supply chain disruptions.
  • Economic Cyclicality. Demand for adhesives is closely linked to the construction and real estate sectors, which are sensitive to broader economic cycles.

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Key Metrics

REVENUE

₹254 Cr

TTM · consolidated

+0.5%YoY

NET PROFIT

₹7 Cr

TTM · consolidated

-61.8%YoY

EPS

₹0.76

TTM · consolidated

-61.6%YoY

RETURN ON EQUITY

3.8%

TTM · consolidated

-6.1 ppYoY

P/E

44.7x

Q4 FY26 · consolidated

44.7 vs 17.0x5Y avg

EV/EBITDA

16.7x

Q4 FY26 · consolidated

16.7 vs 10.9x5Y avg

EBITDA MARGIN

6.6%

TTM · consolidated

-5.5 ppYoY

NET PROFIT MARGIN

-4.1%

Q4 FY26 · consolidated

-10.5 ppYoY

DEBT TO EQUITY

0.0x

Q4 FY26 · consolidated

-0.01xYoY

Peers · Specialty Chemicals

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
HP AdhesivesHPAL
₹320 Cr45.8719.360.5%6.6%3.8%5.4%-24.4%
Kronox Lab Sciences LimitedKRONOX
₹666 Cr23.0516.306.1%38.7%27.7%35.9%+11.2%
Black Rose IndusBLACKROSE
₹584 Cr26.0116.4011.0%13.9%18.9%+19.1%
Vipul OrganicsVIPULORG
₹506 Cr63.1130.627.7%10.4%8.9%13.4%+29.6%
Plastiblends India LimitedPLASTIBLEN
₹493 Cr11.546.835.5%9.2%9.7%12.8%+0.5%
Aarti SurfactantAARTISURF
₹458 Cr24.919.8025.2%6.1%7.7%12.4%+19.0%

As of Q4 FY26

Financials