Why is Hindustan Motors Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
Negative results in Dec 24
- PAT(Q) At Rs 3.34 cr has Fallen at -66.8 %
- PBDIT(Q) Lowest at Rs -0.74 cr.
- PBT LESS OI(Q) Lowest at Rs -0.85 cr.
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25 and has generated 2.07% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 14.29%, its profits have risen by 238.7% ; the PEG ratio of the company is 0.1
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles - Passenger Cars)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hindustan Motors for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hindustan Motors
14.49%
0.20
70.77%
SENSEX
0.45%
0.02
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
38.41%
EBIT Growth (5y)
13.82%
EBIT to Interest (avg)
-4.41
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.01
Tax Ratio
9.20%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
2.64%
ROCE (avg)
28.24%
ROE (avg)
51.89%
Valuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
16
Price to Book Value
28.62
EV to EBIT
-445.75
EV to EBITDA
-445.75
EV to Capital Employed
-83.79
EV to Sales
107.93
PEG Ratio
0.06
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
198.29%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Movement
3What is working for the Company
PAT(9M)
At Rs 16.28 cr has Grown at 74.68 %
-9What is not working for the Company
PAT(Q)
At Rs 3.34 cr has Fallen at -66.8 %
PBDIT(Q)
Lowest at Rs -0.74 cr.
PBT LESS OI(Q)
Lowest at Rs -0.85 cr.
NON-OPERATING INCOME(Q)
is 117.49 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 0.16
Loading Valuation Snapshot...
Here's what is not working for Hindustan Motors
Profit After Tax (PAT) - Quarterly
At Rs 3.34 cr has Fallen at -66.8 %
over average PAT of the previous four quarters of Rs 10.07 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs -0.74 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -0.85 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 117.49 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.16
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)