H.R. Hygiene Products Limited

Consumer Defensive — Household & Personal Products · BSE

₹60.00−₹1.00 (−1.64%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

H.R. Hygiene Products Limited manufactures and distributes absorbent intimate hygiene products in India. The company's products include sanitary napkins, adult diapers for female healthcare, adult care, and baby care areas.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees144

Annual revenue₹131 Cr

How does it make money?

Turns over ₹131 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 144 employees supports ₹90.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin14.7%

Net margin8.7%

Revenue / employee₹90.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

ITC LTDP/E 16.6x · ROE 27.4%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Some evidence

ROCE of 33.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE33.0%

ROE30.9%

Peer median ROE27.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +210% while net margin moved +1886% 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+210%

Margin effect+1886%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

79/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.0x

Sector Median

38.6x

median of 4 sector peers

🟢Against its sector it trades 69% below the peer median of 38.6x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

38.6x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.0x

P/B

2.52x

EV/EBITDA

8.1x

PEG

0.04

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 4.5% to 14.7% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 15.0% to 26.9%.
Return on capital is rising
ROCE has improved from 11.9% to 33.0%.
High return on capital employed
ROCE of 33.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 2209% against revenue growth of 210% — customers are taking longer to pay.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 2209% against revenue up 210% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1198% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 4.5% to 14.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Sales are being booked faster than collected
Receivables are up 2209% against revenue up 210%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.

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

1Revenue growth stays above 34% a year✓ 45.8% CAGR
Latest reported year was 14.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 30%✓ 33.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹136 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

2.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.02

Profitable

Profitable on a per-share basis

ROE

30.9%

Strong

Strong capital efficiency

ROCE

33.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

14.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹60

ROA

8.5%

Good

Assets are working hard

Operating Margin

13.7%

Average

Average margins

Net Margin

8.7%

Average

Average bottom-line conversion

Current Ratio

1.41

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

62.5 / 66.4

Bearish alignment (short < long)

RSI (14)

28.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹42 Cr	₹83 Cr	₹115 Cr	₹131 Cr	+45.8%
EBITDA	₹2 Cr	₹9 Cr	₹16 Cr	₹19 Cr	+116.3%
EBITDA Margin	4.5%	10.4%	13.5%	14.7%	—
PAT (Net Profit)	₹0 Cr	₹5 Cr	₹9 Cr	₹11 Cr	+294.8%
EPS	₹0.08	₹2.22	₹4	₹5.02	+294.8%
ROE	15.0%	80.3%	28.9%	26.9%	—
ROCE	11.9%	43.9%	33.7%	33.0%	—
Total Debt	₹20 Cr	₹25 Cr	₹21 Cr	₹22 Cr	+3.1%
Free Cash Flow	-₹2 Cr	-₹4 Cr	-₹10 Cr	₹1 Cr	—

🟢 Revenue has grown at 45.8% a year over 3 years.

🟢 EBITDA has grown at 116.3% a year over 3 years.

🟢 EBITDA Margin has risen from 4.5% to 14.7% over 3 years (+10.2 pts).

🟢 PAT (Net Profit) has grown at 294.8% a year over 3 years.

🟢 EPS has grown at 294.8% a year over 3 years.

🟢 ROE has risen from 15.0% to 26.9% over 3 years (+11.9 pts).

🟢 ROCE has risen from 11.9% to 33.0% over 3 years (+21.2 pts).

🔴 Total Debt has grown at 3.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹171 Cr

Total Liabilities

₹129 Cr

Total Debt

₹22 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

4.5%

Insider Holding

75.8%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

H. R. Hygiene Products Ltd. Share Price Live Today

CNBC TV18, 16 Oct

H.R. Hygiene Products Share Price: why the stock fell 8.54%

Univest, 01 Oct

H.R. Hygiene Products IPO GMP, Date, Price Band & Review

IndiaIPO, 29 Jul

H.R. Hygiene Products (BSE:544848) - Stock Analysis

Simply Wall Street, 05 Aug

BSE SME H. R. Hygiene Products enters the market with a steady pulse

Business Standard, 05 Aug

H.R. Hygiene Products shares to list today on BSE SME. Here’s what GMP suggests

The Economic Times, 05 Aug

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong11.8/15

🟢ValuationAttractive11/15

🔴RiskHigh2.5/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 34% a year45.8% CAGR
✓EBITDA margin holds above 13%14.7%
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x1.1x
✓ROCE stays above 30%33.0%