Hindustan Composites Limited, incorporated in 1964 and based in Mumbai, India, stands as a pioneer in the development, manufacture, and marketing of Asbestos Industrial Products and Friction Materials in India for over 50 years. Previously known as Hindustan Ferrodo Limited, the company is an associate of AM & FM UK, which acquired the undertaking of Asbestos Magnesia & Friction Materials to manufacture friction materials and asbestos industrial products.
The company operates as an ISO 9001:2015 & IATF 16949:2016 certified developer, manufacturer, and marketer of Friction Materials in India. Its product range comprises Brake Lining, Clutch Facing, Disc Brake Pad, Roll Lining, and Brake Block. Hindustan Composites currently operates modern manufacturing facilities in Aurangabad and Bhandara, Maharashtra, and maintains a pan-India marketing network with regional offices in Mumbai, New Delhi, Chennai, and Kolkata.
Hindustan Composites operates in the specialized domain of friction materials and automotive components. The company develops, manufactures, and markets fibre-based friction materials in India, including automotive brake linings, automotive and industrial roll linings, automotive clutch facings and ceramic buttons, automotive disc brake pads, railway brake blocks, and friction sheets. Additionally, the company provides industrial thrust bearing and insulation products comprising millboard sheets, millboard discs, compestos, and compestos rings.
The company's extensive product portfolio caters to diverse industrial sectors such as Railways, Engineering, Mining, Aerospace, Steel, Chemical, Petrochemical, Fertilizer, Power Generation, Shipbuilding, Atomic Energy, Electrical, Oil Exploration, and Automotive. Hindustan Composites has a significant presence in Drum Brake Lining, Disc Brake Pads for commercial vehicles, farm equipment tractors, railway brake blocks and disc pads, clutch facings/buttons, woven brake lining, molded brake roll, and friction sheets for industrial, off-highway, mining, marine, and other applications.
The company has established strategic partnerships with global leaders in the automotive industry. It collaborates with global majors such as TBK, Japan, and Bendix Mintex, Australia, for new development, formulation, and process improvements, leveraging these partnerships to maintain a competitive edge in product development.
A significant milestone was achieved through its joint venture with ADVICS Japan. Hindustan Composites Limited (HCL) has a joint venture with Advics Japan for Disc Brake Pads specifically for passenger cars and small commercial vehicles, with a dedicated manufacturing facility located in Aurangabad. This joint venture, ADVICS North India Pvt. Ltd., is an affiliate of ADVICS CO. LTD (jointly owned by Aisin Seiki Co. Ltd, Denso Corporation, Sumitomo Electric Industries Ltd. and Toyota Motor Corporation), which are world leaders in passenger vehicle brake systems and friction material.
Hindustan Composites Ltd has demonstrated consistent financial performance in recent periods, reinforcing its market position. The company's market capitalization stands at ₹652 crore as of May 2025.
For the financial year 2025, net profit rose by 1.71% to ₹35.00 crore, compared to ₹34.41 crore in the previous year ended March 2024. Sales for FY2025 also showed robust growth, increasing by 9.20% to ₹325.08 crore, up from ₹297.68 crore in FY2024.
• FY2025 Performance: Net Profit of ₹35.00 crore (1.71% growth), Sales of ₹325.08 crore (9.20% growth)
• Q4 FY2025 Performance: Sales of ₹89.15 crore (13.47% growth), Net Profit of ₹6.07 crore
• Q3 FY2025 Performance: Net Profit of ₹10.97 crore (69.81% growth)
• Market Capitalization: ₹636 Crore (as of 08-Apr-2025)
• Promoter Holding: 74.98% (as of Mar 2025)
• P/B Ratio: 0.58 times (as of 08-Apr-2025)
• P/E Ratio: 17.24 times (as of 08-Apr-2025)
The company has made significant strides in environmental responsibility and sustainable manufacturing. In 2024, Hindustan Composites became a "green company" by successfully eliminating all asbestos-based products at its manufacturing plants. This transition represents a major shift towards sustainable practices while maintaining stringent product quality and performance standards.
Hindustan Composites has established a strong and expanding presence in international markets, exporting its products to more than 30 countries worldwide. Major export markets include Latin America, Greece, the Middle East, and South East Asia. The company's successful international business operations have been recognized by the Government of India, with the award of a "Certificate as Export House" by the DGFT-Ministry of Commerce & Industry.
The company maintains a strong commitment to innovation and technological advancement, positioning itself as a technology-driven entity. Hindustan Composites is dedicated to continuous upgradation and development of materials and processes to ensure the highest quality standards across its product portfolio. Its firm belief in 'Investment for the Future' has led to the continuous enhancement of its R&D facilities. The company's R&D Centre has been officially accorded recognition by the Department of Science and Technology, Government of India.
As per Value Research classification, Hindustan Composites Ltd is categorized as a Small Cap company. The company demonstrates strong fundamentals, with promoter holding in Hindustan Composites Ltd at 74.98 per cent as of March 2025, indicating high management confidence and stability. A significant positive indicator for investors is the absence of any promoter pledging in Hindustan Composites Ltd.
The stock has shown resilience and a steady growth trajectory, with its share price moving up by 69.55% on BSE over the last three years. This performance reflects the market's confidence in the company's business model, operational efficiency, and consistent growth.
