This chemical stock is in focus after it hits 20 percent upper circuit following its reporting of the Government waving off its dues worth Rs. 1,351.38 Crore. Which will have a direct impact on the Company’s financials.
Share Price Movement
With a market capitalization of Rs. 216 Crore, the stock of Hindustan Organic Chemicals opened at Rs. 32.11, hitting a 20 percent upper circuit from yesterday’s close of 26.76. Additionally, the Yearly return for the stock is -23 percent, and the past 5-year return is an impressive 365 percent.
Company Update
The Ministry of Chemicals & Fertilizers passed an Order on 21-03-25, informing that the Parliament has approved waiving off the dues that they had to pay to the Government of India amounting to 1,351.38 Crore as of 30-09-24.
The Dues comprised of a Loan from the Government of India (GoI), Preference shares, Interest/penalty of preference shares, and penal interest on the Government of India loan. The company states that this write-off will have a positive impact on the financials.
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Financial Highlights
The company reported an 11.76 percent YoY increase in revenue from Rs. 187 Crore in Q3FY24 to Rs. 165 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 5.71 percent in revenue from Rs. 175 Crore in the previous quarter.
Their Net loss saw an Increase from 18 Crore in Q3FY24 to 79 Crore in Q3FY25. On a QoQ basis, the company reported an increase in Net loss from Rs. 14 Crore in the previous quarter.
About the Company
Hindustan Organic Chemicals Limited (HOCL) is a public sector undertaking (PSU) under the Ministry of Chemicals & Fertilizers, established in 1960 to promote self-reliance in organic chemical production and reduce import dependence. Headquartered in Mumbai, India, HOCL operates a manufacturing unit in Kochi, Kerala, producing key chemicals like Phenol, Acetone, and Hydrogen Peroxide, which serve industries such as pharmaceuticals, resins, rubber, and pesticides.
Written By Abhishek Das
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