This PSU stock zoomed over 100% in one month

Hindustan Organic Chemicals locked in upper circuit of 10% at Rs 39.60, rallied 103% in past one month from Rs 19.55, as compared to 3.4% rise in the Sensex.

Hindustan Organic Chemicals (HOCL) was locked in upper circuit of 10% at Rs 39.60 on the BSE on back of heavy volumes. 
 

Till 10.47 am, around 1.93 million equity shares were changed hands on the counter against an average sub one million shares were traded. There were pending buy orders for 496,337 shares on the BSE.

In past one month, shares of state-owned commodity chemicals Company zoomed 103% from Rs 19.55, as compared to a 3.4% rise in the S&P BSE Sensex.

HOCL had posted a robust set of numbers for the quarter ended June 2018 (Q1FY19). The company reported a net profit of Rs 402 million in Q1FY19, on back of strong growth in operational revenue. It posted a net loss of Rs 498 million in June 2018 quarter and loss of Rs 896 million in March 2018 quarter.

The company’s revenue from operations jumped nearly six-fold at Rs 1,462 million against Rs 252 million in the year-ago quarter.

“The company is in the process of implementation of the Government approved restructuring plan. VRS has been implemented in Rasayani and sale of unencumbered land through NBCC is in progress. The Phenol plant and Hydrogen Peroxide plant at Kochi is in operation. In view of this the financial statement has been prepared on going concern basis,” HOCL said in a statement.

HOCL is a Government of India undertaking company engaged in the business of manufacture and sale of chemicals. They provide the basic organic chemicals essential for vital industries like resins and laminates, dyes and dyes intermediates, drugs and pharmaceuticals, rubber chemicals, paints, pesticides and others, touching virtually facet of everyday life. They also produce the versatile engineering plastic polytetrafluoroethylene (PTFE) through their subsidiary. They have one subsidiary company, namely Hindustan Fluorocarbons.

Hindustan Fluorocarbons too locked in upper circuit of 5% at Rs 17.47, also its 52-week high on the BSE.  In past three weeks, the stock rallied nearly 69% from Rs 10.35 on August 7, after it reported a net profit of Rs 17 million in Q1FY19. It had posted a net loss of Rs 10.4 million in previous year quarter.