Latest news with #HLEGlascoat
Time of India
29-05-2025
- Business
- Time of India
Smallcap mania is back. But do Q4 earnings really justify the multibagger hype?
A smallcap rally is exciting investors, with the BSE Smallcap Index rising nearly 10% in a month and many stocks delivering over 30% returns. However, earnings growth lags behind, with smallcaps showing lower profit growth compared to largecaps. Experts advise caution, suggesting a focus on fundamentals and a potential shift towards largecaps due to stretched valuations in the smallcap segment. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A blistering rally in smallcap stocks is reigniting investor dreams of overnight riches but the numbers are telling a far more complicated story. With the BSE Smallcap Index up nearly 10% in one month, retail participation is surging, echoing the speculative fervor of the last bull market that climaxed in September 2024. And the excitement isn't just index-level: in the last one month, a staggering 69 smallcap stocks have delivered over 30% returns. Among the biggest gainers, Suven Life Sciences surged 83%, while GRSE Nelcast , and HLE Glascoat all rallied at least 50%.But while prices soar, fundamentals remain shaky and earnings aren't keeping pace with the hype.'Indian smallcaps and midcaps seem to have outperformed largecaps in Q4 FY25, but the numbers tell a different story,' said Akshay Badjate, Fund Manager at Merisis PMS. 'Our analysis of the top 750 listed companies shows smallcaps lagging in profit growth, with a median PBT growth of just 4% compared to 11% for the top 250 largecaps. Many smallcaps even posted flat or negative growth, undermining the narrative of a broad-based rally.'Despite the tepid performance on the bottom line, investor appetite has remained insatiable. The Nifty Smallcap 250 has rallied 9% in the last two months, triple the 3% rise seen in the Nifty 50. Badjate attributes this surge to 'liquidity, retail enthusiasm, and domestic growth optimism,' but warns that the disconnect between price and performance may not be sustainable.'Our view at Merisis Advisors is cautious,' he said. 'While select smallcaps with strong fundamentals remain appealing, the segment risks a correction if earnings don't align with valuations. We're trimming smallcap exposure and leaning into largecaps and large midcaps, where we see better operational momentum and value.'Q4 did deliver a few bright spots for the broader market. 'The Nifty Midcap 150 reported 15% YoY profit growth and the Smallcap 250 delivered 12%. Margin performance was largely stable in midcaps, though smallcaps saw some pressure,' said Krishna Appala, Fund Manager at Capitalmind Appala also flagged that the earnings catch-up story has its limits. 'Valuations remain stretched — midcaps trade at 34x and smallcaps at 32x trailing earnings, well above the 22x seen in largecaps. The divergence between earnings and valuations in the broader market calls for greater selectivity.'He further added that while largecaps may appear sluggish, they now offer a better risk-reward profile. 'Despite the sharp upmove recently, largecaps currently offer a better balance of earnings visibility and valuation comfort on a forward-looking basis. The environment today rewards fundamentals and discipline over broad-based exposure — especially when mid and smallcap multiples leave little room for error.'Still, not all fund managers are ready to write off smallcaps just yet. Vaibhav Chugh, Director and Head of Sales at Whiteoak Capital AMC, sees rich opportunity in the chaos — provided investors pick wisely.'Yes, the result season started slow but as it progressed, midcaps and smallcaps have surprised on growth trajectory as well as upgrades to downgrades statistics,' Chugh said. 'We continue to be overweight small caps. We find relatively high alpha opportunities due to the heterogeneity of business models, sectors and sub-sectors in the smallcap space — which is the ideal setup for bottom-up stock pickers.'With nearly 70 smallcap names delivering eye-popping returns in a matter of weeks, the lure of the next multibagger is proving hard to resist. But experts caution that investors need to tread carefully — the fundamentals are not as broad-based as the rally suggests, and elevated valuations leave little room for disappointment. The smallcap story is far from over, but chasing momentum without earnings to back it could lead to painful lessons.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business Standard
20-05-2025
- Automotive
- Business Standard
These 2 smallcap industrial products stock zoom 20% on strong Q4 results
Share price of Honda India Power Products and HLE Glascoat today: Shares of Honda India Power Products (₹2,805) and HLE Glascoat (₹362.75) were locked in the upper circuit of 20 per cent on the BSE in Tuesday's intra-day trade after these smallcap companies reported strong earnings for the quarter ended March 2025 (Q4FY25). In comparison, the BSE Sensex was up 0.11 per cent at 82,146 at 09:25 am. However, currently, the share price of Honda India Power Products is trading 38 per cent below its 52-week high of ₹4,494 touched on October 9, 2024. Shares of HLE Glascoat are quoting 31 per cent lower from their 52-week high price of ₹524, hit on July 2, 2024. Track LIVE Stock Market Updates Here HLE Glascoat Q4 results In Q4FY25, the company's profit after tax (PAT) has more than doubled year-on-year (Y-o-Y) to ₹31.64 crore, as against ₹14.80 crore in Q4FY24. Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins have improved 380 basis points (bps) to 16.3 per cent from 12.5 per cent in the year-ago quarter. Revenue grew 8.7 per cent Y-o-Y to ₹333.71 crore from ₹306.90 crore. The company said a robust orderbook as on March 31, 2025, of ₹575.06 crore provides good visibility for enhanced future performance. The company continues to receive enquiries for orders for all segments. Furthermore, the company's subsidiary Kinam commenced its first deliveries in the oil and gas sector, opening new avenues for growth, the management said. Honda India Power Products Q4 results The company reported a 129 per cent Y-o-Y jump in PAT at ₹36.16 crore, as compared to ₹15.80 crore in Q4FY23. Revenue grew 16 per cent Y-o-Y at ₹268.68 crore, as against ₹231.16 crore in the corresponding quarter of the previous year. Demand for portable generators for applications like drone charging, camping for leisure and recreational purposes, besides weather-related disturbances, is expected and will help the company to maintain its dominant position in the portable generator category. Normal portable power backup demand and use of generators for new applications will help the company to maintain its leadership position in the generator category, according to Honda India Power Products. Construction mechanisation, through portable engines running applications and farm mechanisation products such as engines, water pumps, brush cutters, power tillers and crop harvesters, will accelerate the shift to mechanisation with decreasing farm labour and will fuel the demand for portable machinery. Expected continuity in Government support will provide much-needed support for our product portfolio and offerings. The infrastructure sector in India is expected to generate better momentum in the next few years due to increased investment in infrastructure such as national highway facilities, warehousing, airports and urban/rural housing projects, the company said in its FY24 annual report. About Honda India Power, HLE Glascoat Honda India Power is primarily engaged in manufacturing and marketing portable gensets, water pumps, general-purpose engines, lawn mowers, brush cutters, tillers and marine engines. The company manufactures and markets portable generating (PG) sets (inst. cap.: 175000 pa), general-purpose engines, and water pumps. HLE Glascoat is engaged in the specialised 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. Today, the HLE brand is synonymous with filtration and drying in the Indian Chemical and API industries. The Company also manufactures specialised glass-lined equipment like reactors, columns, heat exchangers, filters and dryers. HLE Glascoat's customers are spread across the agrochemicals, speciality chemicals, dyes and pigments, API and pharmaceutical industries.
Business Standard
20-05-2025
- Business
- Business Standard
HLE Glascoat soars on strong Q4 results
HLE Glascoat hit an upper limit of 20% at Rs 2805.40 after the company's consolidated net profit soared 113.8% to Rs 31.64 crore while revenue from contract with customers rose 8.7% to Rs 333.70 crore in Q4 March 2025 over Q4 March 2024. Sequentially, the company's consolidated net profit surged 207.8% while revenue from contract with customers jumped 44.4% in Q4 FY25 over Q3 FY25. EBITDA surged 41.1% year-on-year and 96.7% QoQ to Rs 54.24 crore in Q4 FY25. EBIDTA margin stood at 16.3% in Q4 FY25 higher than 11.9% in Q3 FY25 and 12.5% in Q4 FY24. For the full year, net profit climbed 51.1% to Rs 61.77 crore while revenue from contract with customers rose 6.2% to Rs 1027.58 crore in the year ended March 2025 over the year ended March 2024. EBITDA rose 16.6% year-on-year to Rs 140.93 crore in FY25 over FY24. EBIDTA margin stood at 13.7% in FY25 higher than 12.5% in FY24. The company's orderbook as on 31st March 2025 stood at Rs 575.06 crore. The company has reduced its long-term and short-term debt obligations by Rs 49.76 crore during the year. Himanshu K. Patel, managing director said, "We continued to reinforce our position as a trusted partner to Indias chemical and pharmaceutical industries, both of which are benefiting from structural tailwinds such as increased global outsourcing, supply chain diversification, and rising domestic demand. As these process industries focus on capacity expansion and technology upgrades, the demand for high-quality and highly efficient equipment remains strong." HLE Glascoat is engaged in the specialized business of manufacturing chemical process equipment, filtration, drying, heat transfer and glass lined equipment.
Business Standard
20-05-2025
- Business
- Business Standard
HLE Glascoat consolidated net profit rises 104.83% in the March 2025 quarter
Sales rise 8.74% to Rs 333.71 crore Net profit of HLE Glascoat rose 104.83% to Rs 20.34 crore in the quarter ended March 2025 as against Rs 9.93 crore during the previous quarter ended March 2024. Sales rose 8.74% to Rs 333.71 crore in the quarter ended March 2025 as against Rs 306.90 crore during the previous quarter ended March 2024. For the full year,net profit rose 57.33% to Rs 46.71 crore in the year ended March 2025 as against Rs 29.69 crore during the previous year ended March 2024. Sales rose 6.16% to Rs 1027.59 crore in the year ended March 2025 as against Rs 967.92 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 333.71306.90 9 1027.59967.92 6 OPM % 15.5811.89 - 13.0011.58 - PBDT 44.9328.12 60 104.7490.30 16 PBT 37.2021.17 76 75.0763.99 17 NP 20.349.93 105 46.7129.69 57
Mint
20-05-2025
- Business
- Mint
HLE Glascoat share price hits 20% upper circuit after net profit doubles in Q4, touches 3-month high
HLE Glascoat share price in focus on May 20: HLE Glascoat share price locked in a 20% upper circuit on Tuesday, May 20, hitting a 3-month high of ₹ 362 apiece, after investors cheered the company's strong March quarter (Q4FY25) performance. The company, in its post-market announcement on Monday, reported a 113% YoY jump in consolidated net profit to ₹ 32 crore, while revenue from operations rose to ₹ 334 crore, up from ₹ 307 crore in the same quarter last year. Revenue from the Glass-Lined Equipment segment jumped 31.5% YoY, while the Filtration, Drying, and Other Equipment and Heat Transfer Equipment segments registered a degrowth of 5.3% and 9.2%, respectively. On the operating front, EBITDA improved by 44% YoY to ₹ 52 crore, with margins expanding by 400 basis points to 16%. Its order book as of 31st March 2025 stood at ₹ 57,506.2 lakhs, providing good visibility for enhanced future performance. The company said it continues to receive inquiries for orders for all segments. For the financial year 2024–25 (FY25), HLE Glascoat reported a consolidated revenue of ₹ 1,027.6 crore, registering a year-on-year growth of 6.2%. The company's EBITDA stood at ₹ 140.9 crore, reflecting a 16.6% increase over the previous year, with the EBITDA margin at 13.7%. Profit after tax (PAT) came in at ₹ 61.77 crore, marking a strong 51.1% year-on-year growth, with a PAT margin of 6.0%. Meanwhile, the board has proposed a dividend of 55% ( ₹ 1.10 per equity share) for FY2024-25. Commenting on the results, Mr. Himanshu K. Patel, Managing Director, said, "We continued to reinforce our position as a trusted partner to India's chemical and pharmaceutical industries, both of which are benefiting from structural tailwinds such as increased global outsourcing, supply chain diversification, and rising domestic demand." "We also made significant strides on our strategic priorities. The inauguration of our state-of-the-art Center of Excellence in Anand, Gujarat, marks a key milestone in enhancing customer engagement, accelerating innovation, and deepening technical capabilities. Furthermore, our subsidiary Kinam commenced its first deliveries in the oil & gas sector, opening new avenues for growth," he further stated. After witnessing a steady downward trend, HLE Glascoat shares made a comeback in March with a 3% gain amid a broader recovery in the Indian stock market. The momentum extended into the following months, with the stock gaining another 9% in April and rising 33.31% so far in the current month. Despite the strong rebound, HLE Glascoat's share price remains down by 76% from its all-time high of ₹ 1,510, recorded in October 2021. The company is engaged in the specialized business of manufacturing chemical process equipment. Its key product segment is filtration and drying equipment. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
