Why HLE Glascoat Shares Rose Over 23% in Two Days

By Aditya Raghunath

Investing.com — HLE Glascoat Ltd (BO:) works in a very specialized industry: It manufactures chemical process equipment and is the second-largest player in India in the glass lined equipment market. The company’s stock price has zoomed over 23% in the last two trading sessions (including February 16) to Rs 1,717. On February 15, the stock rose 20% within the first 1.5 hours of trading and was locked in an upper circuit for the rest of the trading session.

The stock has gained momentum on the back of excellent third-quarter results for FY21. HLE Glascoat reported a 23% increase in net revenue to Rs 132.5 crore. EBITDA (earnings before interest, tax, depreciation, and amortization) grew 44% to Rs 29.7 crore. Net profit jumped 58% to Rs 17.16 crore. All these figures are compared to the same quarter for FY20.

The company is confident that both its verticals: Filtration and dryers, and glass-lined equipment will continue to gain from the faster-than-expected economic recovery taking place. Order books for both verticals are strong. “We currently have 6 to 7 months order book for both filter dryers as well as glass lined equipment. All our end user industries – API Pharma, Specialty Chemicals, Agrochemicals, Dyes and Pigments are performing well and their outlook remains promising,” said the company.

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