H.P. Cotton Textile Mills Limited (502873) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of H.P. Cotton Textile Mills Limited ₹172, price ₹86.03, upside +99.4%, quality 58 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range ₹41.91 – ₹196.12 · fair‑value band ₹128.62 – ₹214.37 · the ₹86.03 price screens below the ₹171.50 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 24, 2026.
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H. P. Cotton Textile Mills Limited manufactures and sells cotton specialty yarns and sewing threads in India. It offers crochet, embroidery, lace, patchwork and quiliting, kite flying, and cotton sewing, and mercerized cotton threads; and hand knitting yarns. The company also exports its products to approximately 63 countries worldwide.
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H. P. Cotton Textile Mills Limited manufactures and sells cotton specialty yarns and sewing threads in India. It offers crochet, embroidery, lace, patchwork and quiliting, kite flying, and cotton sewing, and mercerized cotton threads; and hand knitting yarns. The company also exports its products to approximately 63 countries worldwide. H P Cotton Textile Mills Limited was founded in 1981 and is based in New Delhi, India.
Stock analysis
H.P. Cotton Textile Mills Limited (502873) currently trades at ₹86.03, while our model-based Fair Value estimate is ₹171.50, implying the stock looks roughly 49.8% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹399.82 per share, and 20 of the 24 models we run sit above the ₹86.03 price.
Bear case: the Asset-Based group reads lowest at ₹33.94, and 4 of the 24 models stay below the price. Evidence for this calculation is low.
Scenario range: ₹128.62 (bear) to ₹214.37 (bull), the price of ₹86.03 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 58/100 (solid quality), in the Industrial Goods sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
H.P. Cotton Textile Mills Limited reported revenue of ₹1.3B in FY2026 versus ₹1.3B in FY2022, a compound −0.1%/yr. Reported net income was ₹29.7M in FY2026, compounding −19.4%/yr from FY2022.
Key figures
Market cap ₹93.9M (≈ $975K) · P/E ratio 3.6 · P/S ratio 0.08 · EPS (TTM) ₹7.33 · Net margin 2.3% · Return on equity 14.9% · Return on assets (EBIT) 2.6% · Operating margin 5.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 30% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrial Goods peers we cover trades at −31% fair-value upside, at 99%, 502873 screens cheaper than that median.
Fair Value models
Bear ₹128.62Fair Value ₹171.50Bull ₹214.37
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹3.73 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.72/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+2.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.4%
Start year 2021 (pandemic). Over 10 years: +4.0% a year
Revenue growth 12 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.5%
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What shareholders gained per year (last 5 years), in INR (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−6.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−6.5%
Dividend (yield on the price)0.0%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 6%
2026 sits 71% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−1.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about −5.6% a year for the price.
Compare H.P. Cotton Textile Mills Limited with another stock
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Peer GroupⓘHow this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Textile Industrial” was too small, so the broader sector is used.)Consumer Discretionary · 3570 stocks
Beats the sector median on 11/14 measures
Overall it ranks above its sector peers.
Valuation
Quality Score58 · Above median
Fair Value upside+121.2% · Top 25%
Profitability
Return on equity (TTM)14.9% · Top 25%
Return on assets4.2% · Above median
Net margin (TTM)3.2% · Below median
Operating margin (TTM)5.3% · Above median
Growth and dividend
Revenue growth22.6% · Top 25%
Dividend yield (TTM)0.0% · Bottom 25%
Balance sheet
Debt / equity0.61× · Highest 25%
Valuation Multiplesvs Consumer Discretionary median · lower = cheaper
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Is H.P. Cotton Textile Mills Limited (502873) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of ₹171.50 versus a price of ₹86.03, about +99% upside (undervalued).
What is the fair value of 502873?
Our model-based fair value for H.P. Cotton Textile Mills Limited is ₹171.50 (as of Sep 24, 2026), built from audited fundamentals. The current price: ₹86.03.
What is the quality score of 502873?
H.P. Cotton Textile Mills Limited has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for H.P. Cotton Textile Mills Limited (502873)?
Our model-based price target is the fair value of ₹171.50 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario ₹128.62, optimistic scenario ₹214.37. It is a calculation from audited fundamentals, not an analyst target.
What is the H.P. Cotton Textile Mills Limited stock forecast for 2026?
Our models put fair value at ₹171.50, about +99% upside versus a price of ₹86.03 (undervalued). Cautious scenario ₹128.62, optimistic scenario ₹214.37. The calculation is refreshed regularly with new filings.
What is the revenue of H.P. Cotton Textile Mills Limited (502873)?
H.P. Cotton Textile Mills Limited reported trailing-twelve-month revenue of about ₹874M (latest available figure, as of Sep 24, 2026).
What growth is priced into H.P. Cotton Textile Mills Limited (502873)?
For today's price to be fair in a discounted-cash-flow model, H.P. Cotton Textile Mills Limited would have to grow free cash flow by -1.7 % per year for five years (discount rate 11.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.4 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 502873 use?
Our models discount H.P. Cotton Textile Mills Limited at 11.3 %: a base by market capitalisation (nano), damped by beta 0.67, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For H.P. Cotton Textile Mills Limited that is -1.7 % per year a year over ten years, using the same discount rate (11.3 %) and the same formula as our fair value.
How much growth has H.P. Cotton Textile Mills Limited (502873) delivered so far?
Over the past 5 years revenue at H.P. Cotton Textile Mills Limited grew +6.4 % a year. The price currently implies -1.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
What is the free cash flow yield of H.P. Cotton Textile Mills Limited (502873)?
The free-cash-flow yield on the price is 22.08 %: that much free cash flow H.P. Cotton Textile Mills Limited produces per unit of market value. When it exceeds the discount rate of our models (11.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of H.P. Cotton Textile Mills Limited (502873)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For H.P. Cotton Textile Mills Limited it is ₹171.50 per share (as of Sep 24, 2026), against a price of ₹86.03. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is H.P. Cotton Textile Mills Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 502873 trades below its calculated fair value: price ₹86.03, fair value ₹171.50, a gap of about +99% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 502873?
No. The price is what the market pays today (₹86.03); the fair value is what the company's own numbers justify (₹171.50). For H.P. Cotton Textile Mills Limited the two are ₹85.47 per share apart. That gap is exactly why we show both numbers side by side.
How much is H.P. Cotton Textile Mills Limited worth?
The market values H.P. Cotton Textile Mills Limited at about ₹93.9M (market capitalisation, as of Sep 24, 2026). Per share that is ₹86.03; our models calculate a fair value of ₹171.50 per share.
What do the bullish and bearish scenarios say about 502873?
Our models span a range for H.P. Cotton Textile Mills Limited: cautious scenario ₹128.62, base ₹171.50, optimistic ₹214.37 per share (as of Sep 24, 2026, price ₹86.03). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 502873?
H.P. Cotton Textile Mills Limited trades at a price-to-earnings ratio of 3.6 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹171.50 is built from several models across several years. Other multiples: P/B 0.5, P/S 0.1, EV/EBITDA 3.2.
How solid is the balance sheet of H.P. Cotton Textile Mills Limited (502873)?
Balance-sheet figures for H.P. Cotton Textile Mills Limited (as of Sep 24, 2026): return on equity 14.9%, debt of 0.61 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is 502873 from its 52-week high?
H.P. Cotton Textile Mills Limited trades at ₹86.03, about 30% below its 52-week high of ₹122.05 and 2% above the low of ₹84.00 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹171.50 is for.
Which stocks are comparable to H.P. Cotton Textile Mills Limited?
From the same area (Industrial Goods) we also value Raymond Limited, BETXIND, Deepak Spinners Limited, KG Petrochem Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is H.P. Cotton Textile Mills Limited stock attractive at the current price?
The data as of Sep 24, 2026: price ₹86.03, calculated fair value ₹171.50 (+99%), Quality Score 58/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 502873 calculated?
We run H.P. Cotton Textile Mills Limited through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹171.50, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. H.P. Cotton Textile Mills Limited currently trades 50 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of H.P. Cotton Textile Mills Limited (502873)?
The closing price on Oct 1, 2026 was ₹86.03. Our model-based fair value is ₹171.50, about +99% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with H.P. Cotton Textile Mills Limited right now?
The price is below even our cautious bear case (₹128.62). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of H.P. Cotton Textile Mills Limited
How large is the market capitalisation of H.P. Cotton Textile Mills Limited (502873)?
The market capitalisation of H.P. Cotton Textile Mills Limited is ₹93.9M (≈ $975K). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of H.P. Cotton Textile Mills Limited (502873)?
The price-to-sales ratio of H.P. Cotton Textile Mills Limited is 0.08 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of H.P. Cotton Textile Mills Limited (502873)?
Earnings per share at H.P. Cotton Textile Mills Limited are ₹7.33 (price ÷ EPS = P/E 3.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of H.P. Cotton Textile Mills Limited (502873)?
The net margin of H.P. Cotton Textile Mills Limited is 2.3% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of H.P. Cotton Textile Mills Limited (502873)?
The return on equity (ROE) of H.P. Cotton Textile Mills Limited is 14.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of H.P. Cotton Textile Mills Limited (502873)?
On an EBIT basis the return on assets of H.P. Cotton Textile Mills Limited is 2.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of H.P. Cotton Textile Mills Limited (502873)?
The operating margin of H.P. Cotton Textile Mills Limited is 5.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at H.P. Cotton Textile Mills Limited (502873)?
Revenue at H.P. Cotton Textile Mills Limited is growing +22.6% versus a year earlier (3y avg +16.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at H.P. Cotton Textile Mills Limited (502873)?
Earnings per share at H.P. Cotton Textile Mills Limited are growing +35.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does H.P. Cotton Textile Mills Limited (502873) carry?
The net debt of H.P. Cotton Textile Mills Limited is ₹351M (fiscal year 2026, ≈ 4.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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