Time period given by analyst is one year when HSIL Ltd. price can reach defined target.
HSIL Ltd., incorporated in the year 1960, is a Small Cap company (having a market cap of Rs 2037.32 Crore) operating in Building Materials sector.
HSIL Ltd. key Products/Revenue Segments include Other Operating Revenue and Sale of services for the year ending 31-Mar-2021.
For the quarter ended 31-12-2021, the company reported a Standalone Total Income of Rs 644.64 Crore, up 13.87 % from last quarter Total Income of Rs 566.10 Crore and up 17.72 % from last year same quarter Total Income of Rs 547.59 Crore. Company reported net profit after tax of Rs 28.49 Crore in latest quarter.
Over the years, the company has built a strong product portfolio and improved the product mix, which has helped in improving its realisations. Glass container business constitute ~88% of Packaging products revenue with an existing capacity of 1600 tonnes per day. HSIL’s entry into high-margin specialty glass segment is expected to further strengthen its presence in the glass packaging segment. Strong industry tailwinds and utilization across diverse sectors coupled with its long‐term association with customers and supply chain partners would support strong growth momentum. Capability to operate with alternative fuel and management’s conscious decision to use the most competitive available fuel has allowed HSIL to consistently improve its margin profile despite the fluctuation in fuel prices. PET bottles business, although a low single digit margin business, complements its product offerings to the clients’ different needs. With capacity of over 10100 tonnes per annum, the company collaborates with leading FMCG and pharmaceutical companies for PET bottle requirements. Its growth dynamics are fully aligned with the fundamental underlying growth profile of its customers and there are multiple growth drivers for the packaging industry. Leveraging its rich manufacturing legacy along with innovation capabilities, the company has emerged as the second‐largest glass container manufacturer in India with the capability of using diverse fuel options and product applications across downstream sectors. Established track record, experienced promoters, diverse institutional clients across industries in the packaging division and entry into high margin specialty glass packaging business are the key positives for the company. Having established a leadership position in glass packaging segment it has ample growth opportunities to mark its territory in PET and security caps & closures. Higher realization due to likely price hikes, capacity expansion due to debottlenecking and foray into high margin specialty glass catering to perfumery, cosmetics industry among others would improve its topline growth and expand margins. Moreover, likely disruption in industry-wide glass container volumes, due to ongoing insolvency proceedings of largest player (Hindusthan National Glass & Industries Ltd), supports HSIL’s medium term prospects.
Promoters held 60.24 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.28 per cent, DIIs 2.44 per cent.
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