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H.P. Cotton Textile Mills Limited (502873) Fair Value & Analysis

Industrial Goods · IN · Market cap ₹93.9M

HP H.P. Cotton Textile Mills Limited 502873 · BSE
Price₹98.60
Fair Value₹163.70
Upside+66.0%
Quality58/100
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Healthy Growth
Thin margins · 3.2% net margin
Moderate debt · generates free cash flow
Ranks above peers (11/13)
Narrow moat 40/100
Evidence: High Range ₹122.48 – ₹204.63 Share as image

Fair value as of: Aug 16, 2026

From 24 valuation models · updated 3 days ago

Fair value updated Aug 16, 2026, revised from ₹155.91 to ₹163.70 (+5.0%) since Aug 9, 2026.

A solid business, screening 66% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹122.48). The market is more pessimistic than our downside scenario.
  • Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

₹196.12 ₹38.24 Fair Value ₹163.70 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 16, 2026.

How to read this chart

60‑month range ₹38.24 – ₹196.12 · fair‑value band ₹122.48 – ₹204.63 · the ₹98.60 price screens below the ₹163.70 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 16, 2026.

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Analysis

H.P. Cotton Textile Mills Limited (502873) currently trades at ₹98.60, while our model-based Fair Value estimate is ₹163.70, implying the stock looks roughly 66.0% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Industrial Goods sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, H.P. Cotton Textile Mills Limited generated revenue of ₹874M at a net margin of 3.2%. Revenue grew 22.6% year over year. It earns a return on equity of 14.9%. Net debt stands at ₹351M. Fundamentals as of Aug 16, 2026

Our scenario range runs from ₹122.48 (bear case) to ₹204.63 (bull case); at ₹98.60, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 25% below its 52-week high and 6% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrial Goods peers we cover trades at -27% fair-value upside, at 66%, 502873 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF ₹135.71 ₹197.09 ₹270.95 80
Residual Income ₹45.94 ₹54.52 ₹101.29 76
Rev-Margin DCF ₹148.91 ₹256.55 ₹384.04 74
All 24 models by family
DCF Models
FCF DCF ₹136.27 ₹208.83 ₹302.62 38
Owner Earnings ₹88.57 ₹140.38 ₹207.36 31
5Y Revenue Exit ₹148.91 ₹256.63 ₹395.14 39
5Y EBITDA Exit ₹191.74 ₹338.50 ₹512.13 41
5Y P/E Exit ₹103.08 ₹169.02 ₹238.08 38
10Y Revenue Exit ₹136.30 ₹224.39 ₹344.66 36
10Y EBITDA Exit ₹164.45 ₹273.55 ₹422.50 37
10Y P/E Exit ₹115.63 ₹171.78 ₹240.15 35
Earnings-Based
Graham-Dodd ₹53.01 ₹184.30 ₹247.67 54
Lynch FV ₹42.78 ₹61.11 ₹79.45 50
PEG = 1.0 ₹42.78 ₹61.11 ₹79.45 46
EPV ₹110.14 ₹127.03 ₹140.73 59
Multiples
P/E Multiple ₹122.78 ₹163.70 ₹204.63 63
P/S Multiple ₹99.39 ₹132.52 ₹165.65 58
P/B Multiple ₹99.39 ₹132.52 ₹165.65 55
EV/EBIT ₹248.52 ₹341.55 ₹434.58 53
EV/EBITDA ₹267.55 ₹366.93 ₹466.31 54
EV/Revenue ₹168.62 ₹253.99 ₹339.36 43
Asset-Based
NCAV (Graham) ₹25.33 ₹33.94 ₹50.66 50
Growth DCF
Growth DCF ₹135.71 ₹197.09 ₹270.95 80
Rev-Margin DCF ₹148.91 ₹256.55 ₹384.04 74
Economic Profit
Residual Income ₹45.94 ₹54.52 ₹101.29 76
ROIC Compounder ₹118.34 ₹147.09 ₹177.94 72
Growth Earnings
Growth-Adj P/E ₹105.62 ₹150.89 ₹196.16 68

Widest divergence: DCF Models (₹208.83) versus Asset-Based (₹33.94). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹874M
Revenue growth (YoY) +22.6%
Net margin 3.2%
Return on equity 14.9%
Free cash flow ₹74.5M FY2026
P/E ratio 3.6 as of Jul 4, 2026
More key figures
Operating margin 5.3%
EPS (TTM) ₹7.33
EPS growth (YoY) +35.4%
Net debt ₹351M FY2026

Figures from reported company fundamentals · as of Aug 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 56 · Market factors (momentum, volatility) 37

Profitability 63
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 17
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹1.3B
Latest YoY
+2.6%
Avg. growth/yr (3Y) 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.
+16.1%
Avg. growth/yr (5Y) 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.
+6.4%
Avg. growth/yr (12Y) 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.
+2.5%
Revenue −0.1%/yr
FY22 ₹1.3B
FY23 ₹840M
FY24 ₹936M
FY25 ₹1.3B
FY26 ₹1.3B
Net income −19.4%/yr
FY22 ₹70.4M
FY23 −₹181M
FY24 ₹9.1M
FY25 ₹25.7M
FY26 ₹29.7M

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Cite: Fair Value Calculator (2026). "H.P. Cotton Textile Mills Limited Fair Value". https://www.fairvalue-calculator.com/stock/502873

Peer Group

Industrial Goods · 22 stocks

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.)

Quality Score 58 · Above median
Fair Value upside +66% · Top 25%
Return on equity (TTM) 15% · Top 25%
Return on assets 4% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth 23% · Top 25%
Debt / equity 0.61× · Higher than 75% of peers

Valuation Multiples vs Industrial Goods median · lower = cheaper

P/E (TTM) 3.6× · Cheaper than 75% of peers
P/B 0.49× · Pricier than 75% of peers
P/S (TTM) 0.11× · Cheaper than 75% of peers
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 3.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 100 · sector 0
PAST 59 · sector 0
HEALTH 70 · sector 98
DIVIDEND 0 · sector 2

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Industrial stocks, each showing price versus our Fair Value estimate (as of Aug 16, 2026).

Stock Price Fair Value vs Fair Value
Raymond Limited 500330 ₹640.90 ₹584.87 -9%
Arvind Limited 500101 ₹564.50 ₹203.30 -64%
Century Enka Limited 500280 ₹582.40 ₹422.06 -28%
Sat Industries Limited 511076 ₹125.00 ₹70.49 -44%
Banswara Syntex Limited 503722 ₹123.50 ₹208.05 +68%
Mafatlal Industries Limited 500264 ₹126.60 ₹74.12 -41%
Donear Industries Limited 512519 ₹88.21 ₹109.50 +24%
Loyal Textile Mills Limited 514036 ₹234.45 ₹171.90 -27%
Pasupati Acrylon Limited 500456 ₹61.16 ₹66.79 +9%
Shri Dinesh Mills Limited 503804 ₹345.00 ₹226.37 -34%

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Frequently asked questions

Is H.P. Cotton Textile Mills Limited (502873) overvalued or undervalued?
As of Aug 16, 2026, our model estimates a fair value of ₹163.70 versus a price of ₹98.60, about +66% (undervalued).
What is the fair value of 502873?
Our model-based fair value for H.P. Cotton Textile Mills Limited is ₹163.70 (as of Aug 16, 2026), built from audited fundamentals. The current price is ₹98.60.
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 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 Aug 16, 2026).
What is the net profit margin of 502873?
The net profit margin of H.P. Cotton Textile Mills Limited is about 3.2%, meaning it keeps roughly 3.2% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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