Hindustan Motors Limited

Consumer Cyclical — Auto Manufacturers · BSE

₹13.93+₹0.02 (+0.14%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

High

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

In simple words: Strong business and financial position, 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, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Hindustan Motors Limited manufactures and sells vehicles and related spare parts in India. The company offers passenger cars under the Ambassador name; and light commercial vehicles under the Winner name.

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees192

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, MAHINDRA & MAHINDRA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TATA MOTORS LIMITEDP/E 37.1x · ROE 32.8%

TATA MOTORS PASS VEH LTDP/E — · ROE -3.0%

MAHINDRA & MAHINDRA LTDP/E 17.8x · ROE 19.7%

What is its competitive advantage?Little sign of one

Returns on capital of the level reported 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.

ROE20.9%

Peer median ROE19.7%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 42.2x is demanding — it needs sustained high growth to justify
✗ P/B of 8.07x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

26/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

42.2x

Sector Median

25.2x

median of 3 sector peers

⚠️Against its sector it trades 68% above the peer median of 25.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

25.2x median of 3 peers · +68%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

42.2x

P/B

8.07x

EV/EBITDA

—

PEG

—

Dividend Yield

None

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 68% above the peer median. That premium needs a reason that persists, or it closes.
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.

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

1Free cash flow remains positive✗ not reported
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 9 checks passed

✓ Strong return on equity (ROE ≥ 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

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹291 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

8.07x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.33

Profitable

Profitable on a per-share basis

ROE

20.9%

Strong

Strong capital efficiency

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

20.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-99.2%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹13.93

ROA

-3.4%

Weak

Assets generate little profit

Operating Margin

-82.1%

Weak

Thin margins leave little room for error

Net Margin

1161.2%

Good

Strong bottom-line conversion

Current Ratio

2.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

2%

Near low

Near its 52-week low

Financial Trend (Annual)

Year	Revenue	Gross Profit	Net Income
1998	₹1,299 Cr	₹0 Cr	₹0 Cr
1999	₹1,474 Cr	₹0 Cr	₹0 Cr

Balance Sheet & Cash Flow — FY1999

Total Assets

—

Total Liabilities

—

Total Debt

—

Cash & Equivalents

—

Operating Cash Flow

—

Capex

—

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

32.3%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TATA MOTORS LIMITED	37.1x	32.8%
TATA MOTORS PASS VEH LTD	—	-3.0%
MAHINDRA & MAHINDRA LTD	17.8x	19.7%

Recent News

2 mixed4 general

Hindustan Motors reports net worth of ₹3,205.37 lakh in FY26

scanx.trade, 18 Oct

Hindustan Motors Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Hindustan Motors Q1 FY27 Results: Revenue, PAT & Key Highlights

Univest, 07 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Hindustan Motors - Concurrent Gainers: 10 smallcap stocks that gained for 5 days in a row

The Economic Times, 26 Sept

Hindustan Motors schedules 84th AGM for Sep 23 via VC

scanx.trade, 25 Aug

Force Motors, Hindustan Copper & Netweb Technologies Share Price Surge | Stock Market Today Gains

Samco, 03 MarPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong18/20

🟡Financial HealthAdequate11.7/20

🟡GrowthModest10/20

🟢ProfitabilityStrong14.1/15

🔴ValuationDemanding3.2/15

🔴RiskHigh4.4/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

This thesis breaks if

✗Free cash flow remains positivenot reported