Hindustan Tin Works Limited

Consumer Cyclical — Packaging & Containers · BSE

₹107.75−₹2.20 (−2.00%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Hindustan Tin Works Limited manufactures and sells tin cans, Printed/Lacquered Sheets, and related components in India and internationally. It operates through Manufacturing and Trading segments.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees592

Annual revenue₹379 Cr

How does it make money?

Turns over ₹379 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 592 employees supports ₹63.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹63.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 7.9% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -13% while net margin moved -42% 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-13%

Margin effect-42%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.4% a year
✗ Profit has declined at 20.4% a year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

81/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

11.6x

3Y Median

11.0x

40 monthly readings · mean 10.9x · range 7.6x–14.0x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 11.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 83% below the peer median of 69.2x.

vs. its own history

Fair

11.0x median over 40 months · +5%

vs. sector peers

Cheap

69.2x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.8x

PEG

0.26

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 22% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.7% to 3.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 13.7% to 7.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.5x to 2.3x.
🟡Profit is decliningFinancial
Net profit is down 50% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹17 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 8.7% to 3.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1EBITDA margin holds above 6%✓ 8.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 7.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹112 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.6x

Cheap

Cheap against the generic band

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.32

Profitable

Profitable on a per-share basis

ROE

3.7%

Weak

Weak capital efficiency

ROCE

7.9%

Weak

Low return on total capital employed

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

5.6%

Modest

Modest growth

Profit Growth (YoY)

45.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.70%

Modest

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

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.2%

Average

Average margins

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.76

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

111.2 / 112.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹434 Cr	₹419 Cr	₹371 Cr	₹379 Cr	-4.4%
EBITDA	₹40 Cr	₹46 Cr	₹31 Cr	₹31 Cr	-7.9%
EBITDA Margin	9.2%	10.9%	8.5%	8.3%	—
PAT (Net Profit)	₹16 Cr	₹17 Cr	₹12 Cr	₹8 Cr	-20.4%
EPS	₹15.86	₹16.39	₹11.19	₹8.52	-18.7%
ROE	8.7%	8.3%	5.7%	3.7%	—
ROCE	13.7%	12.5%	8.6%	7.9%	—
Total Debt	₹73 Cr	₹82 Cr	₹77 Cr	₹71 Cr	-0.8%
Free Cash Flow	₹14 Cr	-₹4 Cr	₹11 Cr	₹17 Cr	+6.9%

🔴 Revenue has shrunk at 4.4% a year over 3 years.

🔴 EBITDA has shrunk at 7.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 8.3% over 3 years.

🔴 PAT (Net Profit) has shrunk at 20.4% a year over 3 years.

🔴 EPS has shrunk at 18.7% a year over 3 years.

🔴 ROE has fallen from 8.7% to 3.7% over 3 years (-5.0 pts).

🔴 ROCE has fallen from 13.7% to 7.9% over 3 years (-5.8 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.8% a year).

🟢 Free Cash Flow has grown at 6.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹354 Cr

Total Liabilities

₹131 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹37 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

7.5%

Insider Holding

56.5%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive4 general

Hindustan Tin Works Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Sept

Hindustan Tin Works shareholders pass all AGM resolutions with near-unanimity

scanx.trade, 29 Sept

Hindustan Tin Works Limited Approves Dividend on the Paid-Up Capital for the Financial Year 2025-26

marketscreener.com, 29 SeptCapital return

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

Hindustan Tin Works standalone net profit rises 38.04% in the June 2026 quarter

Business Standard, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

5 Metal and Rigid Packaging Stocks India 2026: Roadmaps

Univest, 27 Aug

Hindustan Tin Works promoter group stake rises to 41.64% after family transfers

scanx.trade, 29 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingRisk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑