Multibagger Alert: This chemical process equipment manufacturer has quadrupled investor wealth in the past year!

resr 5paisa Research Team

Last Updated: 10th December 2022 - 07:27 am

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HLE Glascoat has turned multi-bagger during the past year and is now trading near lifetime highs.

Leading manufacturer of process equipment, HLE Glascoat has given investors stellar returns of 380% over the last year. The share price of the company stood at Rs 1398.45 on October 13, 2020, and since then, the stock has more than quadrupled investor wealth on the back of strong financial performance and growth prospects.

In Q1FY22, HLE Glascoat’s top line grew by 48.34% YoY to Rs 124.24 crore from Rs 83.75 crore in Q1FY21. The filtration, drying and other equipment segment reported revenue of Rs 65.43 crore (52 per cent of revenue) and saw growth of 39.99 per cent on a YoY basis, while, glass lined equipment segment reported revenue of Rs 57.13 crore (46% of revenue), and saw growth of 99.87% on a YoY basis. The company reported strong operational performance with PBIDT and PAT growing 63.11% and 114.04% YoY respectively.

HLE Glascoat is engaged in the specialized business of manufacturing chemical process equipment which is focused on filtration and dryers. It has seen healthy demand from key-end user industries (pharmaceutical, speciality chemicals, agrochemicals), while also taking periodical capacity enhancements and has managed to increase its scale by 19% and 14% in FY20 and FY21, respectively. This coupled with the debottlenecking of operations, technological up-gradation and synergies from mergers have resulted in an improvement in operating profitability, which has translated to wealth creation for its shareholders.

Looking ahead the production linked incentive scheme for the API units to promote domestic manufacturing, attain self-reliance and reduce import dependence will benefit a company such as HLE Glascoat in the long run and hence the prospects of the company remain promising.

HLE Glascoat is the preferred supplier and technology leader having over 60% share in the Indian Filtration and Drying market. The company is also the second-largest player in the Indian Glass Lined (GL) equipment market with a nearly 30% market share.

At noon on Thursday, the stock is trading at Rs 7020, up by 4.58% or Rs 307.50 per share on the BSE. The 52-week high of the scrip is recorded at Rs 7,084.90 and the 52-week low at Rs 1,287.

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