Hindusthan Insulators & Industries Limited

Industrials — Electrical Equipment & Parts · BSE

₹629.00+₹12.30 (+1.99%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:44 pm

Understanding the Business

Company site ↗

The 60-second version of Hindusthan Insulators & Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hindusthan Insulators & Industries Limited engages in the manufacture and sale of electrical conductors and insulators in India and internationally. It operates through four segments: Conductor, Insulator, Real-Estate, and Others.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees333

Annual revenue₹335 Cr

How does it make money?

Turns over ₹335 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 333 employees supports ₹1.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.01 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -42% while net margin moved -65% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-42%

Margin effect-65%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 16.6% a year
✗ Profit fell 337.5% in the latest year

Quality vs. Valuation

Company Quality

48/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

10.7x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 88% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

20.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -3.4% to 21.0% over 3 years.
Debt is being paid down
Total debt is down 76% over 3 years.
Return on equity is rising
ROE has improved from -10.2% to -1.9%.
Return on capital is rising
ROCE has improved from -7.4% to 1.7%.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹8 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -3.4% to 21.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 76% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 19%✓ 21.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹40 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 1.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹1,361 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.7x

Cheap

Cheap against the generic band

P/B Ratio

3.64x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹58.95

Profitable

Profitable on a per-share basis

ROE

-1.9%

Weak

Weak capital efficiency

ROCE

1.7%

Weak

Low return on total capital employed

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

0.7%

Modest

Modest growth

Profit Growth (YoY)

-337.5%

Falling

Profits are shrinking

Dividend Yield

0.03%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹40 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

35.9%

Good

Healthy core-business profitability

Net Margin

12.5%

Good

Strong bottom-line conversion

Current Ratio

1.82

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.30

Market-like

Moves roughly in line with the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

531.4 / 488.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹577 Cr	₹518 Cr	₹269 Cr	₹335 Cr	-16.6%
EBITDA	-₹20 Cr	₹11 Cr	₹12 Cr	₹70 Cr	—
EBITDA Margin	-3.4%	2.1%	4.5%	21.0%	—
PAT (Net Profit)	-₹38 Cr	-₹22 Cr	-₹2 Cr	-₹8 Cr	—
EPS	₹-53.18	₹-30.71	₹-0.17	—	—
ROE	-10.2%	-7.2%	-0.4%	-1.9%	—
ROCE	-7.4%	-2.8%	1.3%	1.7%	—
Total Debt	₹297 Cr	₹329 Cr	₹60 Cr	₹71 Cr	-37.9%
Free Cash Flow	₹15 Cr	-₹1 Cr	-₹7 Cr	-₹40 Cr	—

🔴 Revenue has shrunk at 16.6% a year over 3 years.

🟢 EBITDA has turned positive, from -₹20 Cr to ₹70 Cr.

🟢 EBITDA Margin has risen from -3.4% to 21.0% over 3 years (+24.4 pts).

🟢 ROE has risen from -10.2% to -1.9% over 3 years (+8.3 pts).

🟢 ROCE has risen from -7.4% to 1.7% over 3 years (+9.2 pts).

🟢 Total Debt has shrunk at 37.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹15 Cr to -₹40 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹661 Cr

Total Liabilities

₹238 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹45 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.2%

Corporate Actions

Dividend Rate

₹0.17

Ex-Dividend Date

19 Jun 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive5 general

Hindusthan Insulators & Industries Ltd Hits All-Time High of Rs 629 as Momentum Builds Across Timeframes

MarketsMojo, 16 Oct

Hindusthan Insulators seeks approval for Jhalani, Gauba appointments

scanx.trade, 12 Oct

Hindusthan Insulators & Industries Fix February 27 As Record Date For 1:5 Stock Split: Share Price Gains 1.58%

HDFC Sky, 27 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

HIIL Stock Price and Chart — BSE:HIIL

TradingView, 27 Mar

Broad-Based Technical Strength Lifts Hindusthan Insulators & Industries Ltd to 52-Week High of Rs 629

MarketsMojo, 16 Oct

Bonus Shares This Week: Goldiam International, Hindustan Insulators — Check Record Dates

NDTV Profit, 05 Jul

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Valuation

MiddlingFinancial Health · Profitability

WeakGrowth · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑