Today, I will be analyzing Haldyn Glass Ltd, a midcap glass stock that serves various industries. In this post, I will provide an overview of the company, its financial analysis, operational performance, joint venture with Heinz Glass, promoter stake and shareholding pattern, key concerns, and dividend payout history.
Company Overview: Haldyn Glass Ltd – A Midcap Glass Stock for Various Industries
Haldyn Glass Ltd supplies glass and bottles to the liquor, cosmetics, food, and beverage industries, among others. With a production capacity of roughly 350 tonnes per day and two glass-melting furnaces, the company can produce 1.5 million high-quality containers daily. Haldyn Glass Ltd also supplies 30% of its production to the unorganized space. Some of the company’s top clients include United Spirits, Pernod Ricard, Tilaknagar Industries, Dabur, ADF Foods Ltd, Sosyo, Parle Agro, and Bajaj Corp Ltd.
Key Clients: Haldyn Glass Ltd’s Top Customers in Liquor, Cosmetics, Food, and Beverage Industries
Haldyn Glass Ltd’s clients span various industries, including liquor, cosmetics, food, and beverage. Some of the top clients of the company include United Spirits, Pernod Ricard, Tilaknagar Industries, and Dabur, among others.
Financial Analysis: Declining Profits Since FY2013, but Positive Growth in First 9 Months of This Year
Haldyn Glass Ltd’s profits have been declining since FY2013. However, the first nine months of this year have been splendid for the company. There has been a topline growth of more than 30%, and the operating profit has also doubled on a YOY basis. The net profit as per the first 9 months of the year is close to around 10 crores, which is fairly good.
Operational Performance: Haldyn Glass Ltd’s Exceptional Performance in the Last Quarter
Haldyn Glass Ltd’s operational performance has been exceptional in the last quarter. The company has managed to reduce its power requirements, which has reduced costs and increased the bottom line.
Operating Margins: Cost Reduction Strategies Boost Haldyn Glass Ltd’s Margins
Haldyn Glass Ltd’s operating margins have been positively impacted by the company’s cost reduction strategies. The last quarter was exceptionally well for the company.
Joint Venture with Heinz Glass: Haldyn Glass Ltd’s 50:50 Partnership to Focus on Glass Flacon Manufacturing
Haldyn Glass Ltd has a 50:50 joint venture with the German company Heinz Glass. The commercial work of the JV will be starting in Q4 of this FY. The JV will focus on manufacturing glass flacons for the perfume and cosmetics industries. Once the work starts FY18 will be even more encouraging.
Promoter Stake and Shareholding Pattern: 52.52% Promoter Stake and Diverse Shareholding Among Haldyn Glass Ltd’s Equities
Haldyn Glass Ltd has a promoter stake of 52.52%, while only 28.99% is held by individual investors. 143 corporate bodies hold 8.28% of the equities.
Key Concerns: Haldyn Glass Ltd’s Challenges in Substitutes, Pricing Power, and Power and Fuel Costs
Haldyn Glass Ltd faces some key concerns, including the threat of substitutes, pricing power, and a spike in power and fuel costs.
Dividend Payout History: Haldyn Glass Ltd’s Consistent Dividend Payouts for Shareholders
Haldyn Glass Ltd has a consistent history of dividend payouts to its shareholders. In FY2017, the company paid a dividend of 10% per share. Then, in FY2018, the company increased the dividend to 12.5% per share. Again, in FY2019, the dividend remained at 12.5% per share.
Haldyn Glass Ltd has several promoters who jointly hold a stake of 52.52% in the company. As per the latest shareholding pattern, the largest promoter group is Haldyn Glass Promoters LLP, which holds 32.19% of the equity shares.
The salary details of Haldyn Glass Ltd’s executives and employees are not publicly available.
Haldyn Glass Ltd is a midcap glass stock with the potential for growth. Despite facing challenges such as substitutes and pricing power, the company has managed to reduce its costs through cost-reduction strategies and increase its operational performance. The joint venture with Heinz Glass also has the potential to boost the company’s growth in the coming years. Additionally, the company’s consistent dividend payouts provide an incentive for investors to hold onto the stock.
Overall, Haldyn Glass Ltd appears to be a promising midcap glass stock that investors should keep on their radar. However, as with any investment, it is important to conduct thorough research and analysis before making a decision to invest.