HMT jumps 40.65% in four days

HMT galloped 11.56% to Rs 41 at 12:36 IST on BSE, with the stock extending recent rally on follow-up buying.

Meanwhile, the S&P BSE Sensex was up 43.15 points or 0.16% at 26,796.05

On BSE, so far 7.22 lakh shares were traded in the counter as against average daily volume of 80,433 shares in the past one quarter.

The stock hit a high of Rs 41.25 and low of Rs 36.85 so far during the day. The stock had hit a 52-week high of Rs 59.15 on 8 July 2014. The stock had hit a 52-week low of Rs 24.65 on 4 February 2014.

The stock had outperformed the market over the past one month till 27 October 2014, rising 18.93% compared with 0.48% rise in the Sensex. The scrip, however, underperformed the market in past one quarter, falling 19.85% as against Sensex's 2.4% rise.

The small-cap company has equity capital of Rs 760.35 crore. Face value per share is Rs 10.

Shares of HMT have been on a roll recently, gaining 40.65% in four trading days from its recent low of Rs 29.15 on 21 October 2014. The stock jumped by its maximum permissible limit of 20% to settle at Rs 36.75 on 27 October 2014 triggered by reports that the company may get another lease of life. According to reports, there has been an unprecedented demand for timepieces manufactured by the HMT Watches after reports indicated that country's first watch-maker may be wound up made headlines. The nostalgia-driven clamour has led the government to rethink its decision to close the loss-making public sector company, reports added.

HMT Watches, a wholly owned subsidiary of HMT, is an unlisted company.

HMT reported a net loss of Rs 23.32 crore in Q1 June 2014, lower than net loss of Rs 38.87 crore in Q1 June 2013. Net sales rose 13.1% to Rs 13.03 crore in Q1 June 2014 over Q1 June 2013.

HMT was incorporated in 1953 by the Government of India as a machine tool manufacturing company. Over the years, the company diversified into watches, tractors, printing machinery, metal forming presses, die casting & plastic processing machinery, CNC systems and bearings. Government owned 90% stake in HMT (as per shareholding pattern as on 30 September 2014).

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