Risk factor
Very poor trading liquidity
Profitability factor
Very low or no dividends
About
Established in 1942 and based in Kolkata, India, Hindustan Motors Limited is involved in the manufacturing and distribution of vehicles, their associated spare parts, and a variety of steel products and components. The company's automotive offerings include passenger cars, notably the Ambassador model, and light commercial vehicles sold under the Winner brand. Beyond complete vehicles, it produces a range of casting products, such as grey iron, SG iron, steel, and aluminum pressure die castings, which are utilized across passenger car, LCV, HCV, and tractor segments. These castings encompass complex components like multi-cylinder engine blocks and heads, gearbox housings, and steering arms. Additionally, Hindustan Motors fabricates profile forgings for similar vehicle categories, including intricate items such as multi-cylinder crankshafts, camshafts, and various gears and shafts. The company also trades in vehicle spare parts.
Company Valuation
From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITD