One of the small-cap stocks engaged in manufacturing and sales of glass-lined equipment and filters and dryers equipment for various industries in the country. The stock has skyrocketed by 12% after the announcement of its strong quarterly results. The company’s revenue increased by 3.84 percent QOQ to Rs. 235.78 crore, and net profit increased by 166.05% QOQ to Rs. 14.42 crore.
Stock Movement
After announcing its quarterly results, HLE Glascoat Limited‘s share has skyrocketed by 12.04 percent from the previous close of Rs. 364.15. The stock opened at Rs. 383.90 and is currently trading at Rs. 408, with a high of Rs. 427.25 and a low of Rs. 383.90. The market capitalization now stands at approximately Rs. 2,794.11 crore.
Q2 FY25 Result Walkthrough
Coming into the quarterly results of HLE Glascoat Limited, the company’s consolidated revenue from operations increased by 5.06 percent YOY, from Rs. 224.42 crore in Q2 FY24 to Rs. 235.78 crore in Q2 FY25, and grew by 3.84 percent QoQ from Rs. 227.07 crore in Q1 FY25.
The company has earned revenue from filtration, drying, and other equipment by 27.75%, glass-lined equipment by 61.69%, and heat transfer equipment by 10.57% in Q2 FY25.
Further, the company’s EBITDA margin has increased by 170 bps, from 13.3% in Q2 FY24 to 15.1% in Q2 FY25. The PAT margin has reached 6.1%, which is higher by 130 bps YOY in Q2 FY25.
In Q2 FY25, HLE Glascoat Limited’s consolidated net profit slightly increased by 33.27 percent YOY, reaching Rs. 14.42 crore compared to Rs. 10.82 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 166.05 percent, from Rs. 5.42 crore.
The basic earnings per share increased by 167.09% and stood at Rs 2.11 as against Rs 0.79 recorded in the previous quarter FY25.
In terms of return ratios, HLE Glascoat Limited’s share ROE and ROCE are currently at 8.62 percent and 13.1 percent, respectively. HLE Glascoat Limited has a debt-to-equity ratio of 0.83x.
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Order Book
HLE Glascoat Limited has a robust order book, reflecting strong demand across its product lines in the chemical and pharmaceutical sectors. As of the latest September quarterly reports, the company’s order book stands at approximately Rs. 602.47 crore, indicating significant growth potential.
Shareholding Pattern
As of the September 2024 shareholding pattern, HLE Glascoat Limited has majorly held a promoter by 66.69 percent, a foreign institutional investor by 4.07 percent, a domestic institutional investor by 3.52 percent, and the public by 25.72 percent.
Company Overview
HLE Glascoat Limited leads the manufacturing of specialized process equipment for chemical and pharmaceutical industries in India. The company excels in producing glass-lined equipment, including reactors, storage tanks, and agitators. Through its subsidiaries H L Equipments, Thaletec GmbH, and Thaletec Inc USA, they maintain global reach.
The company operates two main business segments, which include glass-lined equipment and Filtration, Drying, and Other Equipment. The company manufactures agitated filters, rotary vacuum paddle dryers, and various chemical process equipment for API manufacturers. Its comprehensive product range serves essential manufacturing processes in the pharmaceutical and chemical sectors
Written by – Nikhil Naik
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