2024-03-17 15:29:38
New Delhi: Shares of HLE Glascoat, a company that manufactures glass lined equipment, filters and dryers for many industries, have given bumper returns to its investors in the last ten years. During this period, the price of this share has increased by more than 6,000 percent. If an investor had invested Rs 10,000 in this share 10 years ago, the value of his investment today would have been Rs 6 lakh. However, in recent times this stock has given negative returns. It has declined by 12 percent in the last one month. Similarly, if we look at the last three months, there has been a decline of 17 percent. If we talk about six months, there has been a 25 percent decline in this stock. HLE Glascoat is a BSE500 company with a market cap of Rs 3,000 crore. This company works in manufacturing chemical process equipment which is a specialized business. The most important product segment of the company is filtration and drying equipment. The company also manufactures specialized glass lined equipment such as reactors, columns, heat exchangers, filters and dryers. The company’s customers are spread across Agrochemicals, Specialty Chemicals, Dyes & Pigments, API and Pharmaceutical industries. If we look at the shareholding pattern of the company, 67 percent stake is with the promoters while 33 percent stake is with the public shareholders. Talking about public shareholders, mutual funds hold about 3.9 percent stake and foreign investors hold about four percent stake.
The shares of this government company have doubled the investors’ money in one year, do you have them?
What do experts say?
In the recent quarter, the company’s revenue grew by 11 percent to Rs 239 crore while Ebitda was Rs 28.7 crore and Ebitda margin was 12 percent. Experts say that this stock is in a downtrend and it is trading below all the averages on the monthly chart. Vaibhav Kaushik, Research Analyst, GCL Broking said that there is a small support near the level of 370. If it falls below this then it can come till Rs 220. Therefore one should avoid buying it until it closes above 604. It closed at Rs 439.85 with a decline of 2.11% in the previous session.