HP Adhesives Limited is a prominent Indian manufacturer and distributor of consumer adhesives and sealants, serving both domestic and international markets. Founded in 1987 and based in Mumbai, India, the company specializes in a wide array of products including PVC, cPVC, and uPVC solvent cement; synthetic rubber adhesives; PVA adhesives; silicone sealant; and various other sealing compounds and pipe lubricants. They also offer ancillary products like ball valves, teflon tapes, and masking tapes.
The company caters to diverse industries such as plumbing, construction, and packaging. HP Adhesives operates state-of-the-art manufacturing facilities in India and maintains a robust distribution network comprising 4 warehouses and over 750 distributors, reaching more than 50,000 dealers across India.
HP Adhesives Ltd (HPAL) is classified as a Small Cap company, with a market capitalization of ₹470.12 Crore as of July 14, 2025. The company is listed and trades on both the NSE and BSE exchanges under the stock symbol HPAL.
HP Adhesives has demonstrated consistent growth momentum, achieving a good profit growth of 45.8% CAGR over the last 5 years. However, the company has a relatively low Return on Equity (ROE) of 10.4% over the last 3 years, indicating potential for improvement in capital efficiency.
For the full fiscal year ended March 2025, HP Adhesives reported a net profit of ₹18.24 crore, a decline of 11.33% compared to ₹20.57 crore in the previous year ended March 2024. Sales increased by 7.19% to ₹252.87 crore for the year ended March 2025, up from ₹235.91 crore in the previous year.
Key Financial Metrics (FY 2025):
- Revenue: ₹252.87 crore (7.19% growth Year-on-Year)
- Net Profit: ₹18.24 crore (11.33% decline Year-on-Year)
- Operating Revenue (TTM): ₹252.96 crore
- Annual Revenue Growth: 8%
- Pre-tax Margin: 9%
- Return on Equity (ROE): 9%
For the quarter ended March 2025, net profit declined by 23.99% to ₹4.25 crore, down from ₹5.61 crore in the corresponding quarter of the previous year (March 2024). Sales for the quarter ended March 2025 rose by 12.69% to ₹66.83 crore, compared to ₹59.31 crore in the quarter ended March 2024.
An alternative data point for Q3 FY 2024-2025 shows revenue jumping 22.76% to ₹67.97 Crore compared to the same period last year, while net profit fell by 19.19% to ₹4.21 Crore.
The company is virtually debt-free, possessing a strong balance sheet. This debt-free status enhances financial flexibility, reduces financial risk, and contributes to stable earnings growth across business cycles, particularly beneficial during economic uncertainties.
The leadership team includes Anjana Motwani as Chairman and Karan Haresh Motwani as Managing Director. Promoter holding in HP Adhesives Ltd remained strong, standing at 71.35% as of March 2025, consistent with 71.35% as of June 2024. There is no promoter pledging, indicating strong management commitment and sound financial discipline.
The Price-to-Earnings (P/E) ratio for HP Adhesives Ltd (HPAL) is 25.77, and the Price-to-Book (P/B) ratio is 2.78. As of June 4, 2025, the P/E ratio of 25.65 times is approximately a 2% discount to its peers' median P/E ratio of 26.16 times, suggesting that the stock is trading at reasonable valuations relative to its industry peers.
HP Adhesives Ltd (HPAL) has recorded a 52-week high of ₹107.50 and a 52-week low of ₹42.65. The current dividend yield is 0.78%. For the quarter ending March 2024, HP Adhesives Ltd declared a dividend of ₹0.30, translating to a dividend yield of 0.57%.
HP Adhesives operates within the specialty chemicals sector, with a primary focus on adhesives and sealants for construction, plumbing, and industrial applications. The company is part of the Materials sector, specifically the Diversified Chemicals sub-sector. Its extensive distribution network and diverse product portfolio position it favorably to benefit from India's ongoing infrastructure development and construction boom.
The company demonstrates strong adherence to regulatory compliance and transparency. HP Adhesives' Annual Secretarial Compliance Report confirms full regulatory compliance for FY2024-25. Furthermore, there have been no deviations in IPO fund usage for the quarter ended March 2025; funds were utilized as per the original allocation.
Conclusion:
HP Adhesives Limited is a well-established player in India's adhesives and sealants market, characterized by strong fundamentals, debt-free operations, and a comprehensive distribution network. While facing some near-term profitability challenges, the company's consistent revenue growth and robust market position make it an interesting prospect for investors seeking exposure to India's specialty chemicals sector.
