Accordingly, if an investor had invested Rs 10,000 in the stock four years ago and stayed put, the investment would have jumped to 6 lakh, according to an analysis by ET Markets.
However, the stock has been severely underperforming, returning a negative 12%, 17% and 25%, in the last 1 month, 3 months and 6 months, respectively.
HLE Glascoat, a BSE500 company with a market cap of Rs 3,000 crore, is engaged in the specialized business of manufacturing chemical process equipment. The company’s key product segment has been filtration and drying equipment.
The flagship products in this segment are agitated nutsche filters and dryers. The company also manufactures specialised glass lined equipment like reactors, columns, heat exchangers, filters and dryers.
The company’s customers are spread across the agrochemicals, specialty chemicals, dyes and pigments, API and pharmaceutical industries.According to the shareholding pattern available with the exchanges, the company is majority owned by promoters at 67%, while public shareholders own the rest 33%.Among the public shareholders, mutual funds own about 3.9% and foreign investors have 4% stake in the company.
In the recent December quarter, the company reported 11% growth in its revenues at Rs 239 crore, while EBITDA stood at Rs 28.7 crore with an EBITDA margin of 12% in the same period.
Technical outlook – What should investors do?
Analysts said the stock is under a strong downtrend and it is trading below all averages on the monthly charts.
“The stock has one small support near 370 levels, if it breaches, then the price can fall upto 220. So avoid this stock for any purchase until it closes above 604,” said Vaibhav Kaushik, Research Analyst, GCL Broking.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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