Hindustan Composites Stock Price Analysis and Quick Research Report. Is Hindustan Composites an attractive stock to invest in?

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?
We can look into more details and dig a little deeper into the analysis of the stock of this sector. Let’s look at how Hindustan Composites is performing and if it is the right time to buy the stock of Hindustan Composites with detailed analysis.

• The mainstream of revenue for Auto Sector is their sales, Hindustan Composites has reported outstanding sales growth of 21.5131043897943 % and in the latest quarter sales was Rs 78.57 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 20.9268011015368 times for Hindustan Composites . It is managing its inventory efficiently .
   
• Hindustan Composites reported Profit growth of 27.1790052588697 % over the year, where the latest year profit is Rs 27.4727 Cr compared to the previous year of Rs 21.6016 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of Hindustan Composites in the latest quarter is Rs 12.26 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• Hindustan Composites has a poor ROE of 2.98249214675828 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Hindustan Composites has a low Debt to Equity ratio of 0.0011.
   
• Hindustan Composites pays a dividend of 2 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 0.3752 %.
   
• The share of promoter in Hindustan Composites is high at 74.97 %, where the pledging is 0 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Hindustan Composites is 22.5762700224904 compared to the 5 year average PE of 15.9504234636281 .
   
• Share Price: - The current share price of Hindustan Composites is Rs 526. One can use valuation calculators of ticker to know if Hindustan Composites share price is undervalued or overvalued.