Smallcap industrial stock HLE Glascoat zooms 16%; here’s why

Shares of HLE Glascoat surged 16 percent on the NSE on September 27

HLE Glascoat jumped 16 percent to Rs 587 on September 27 on the National Stock Exchange (NSE) amid high volumes, a day after DSP Mutual Fund bought a 3.5 percent stake in the company for over Rs 121 crore.

DSP Mutual Fund's Micro Cap Fund bought 24 lakh shares of HLE Glascoat for Rs 505 apiece, the block deals data showed.

Around 25 lakh equity shares of HLE Glascoat had changed hands on both exchanges by noon on September 27, while 27 lakh were traded a day earlier.

In the past six months, the smallcap industrial stock has surged 19 percent, against a 14 percent rise in the Sensex, after sinking to a 52-week low of Rs 466 on March 29, 2023.

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Based in Gujarat, HLE Glascoat manufactures carbon steel glass lined equipment like reactors, receivers, storage tanks, columns, agitators, valves, pipes and fittings, related spares and accessories.

The company also makes other engineering equipment and organic chemicals.

On September 26, the company said it acquired a 35.5 percent stake in Kinam Enterprises Private Limited (KEPL) for Rs 79.9 crore and 33,407 shares, which represent 0.5 percent holding, for Rs 0.03 crore.

“The eventual amalgamation of KEPL into the company is subject to fulfilment of obligations and conditions prescribed in the aforesaid definitive agreements and board approval, which will be obtained in due course,” clarified the company in an exchange filing.

In the financial year 2022-23, the company’s total income rose to Rs 939 crore from Rs 659 crore in the year-ago period. Profit, too, increased to Rs 698 crore from Rs 582 crore in FY22.

At 1.15 pm, the stock was trading at Rs 547.80 on the National Stock Exchange, up 7.86 percent from the previous close.

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