HLE Glascoat Ltd (HLEGLAS) AI Stock Analysis

• Market Cap: ₹20.13B
• Dividend Yield: 0.24%
• Average Volume (3M): 29.39K
• Price to Earnings (P/E): 267.8
• Beta (1Y): 1.21
• Revenue Growth: 18.87%
• EPS Growth: 99.04%
• Country: IN
• Employees: 740
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Machinery
• EPS (TTM): 0.41
• Shares Outstanding: 69,454,740
• 10 Day Avg. Volume: 31,164
• 30 Day Avg. Volume: 29,386
• PEG Ratio: 0.52
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 20.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹337.00 ▼(-25.06% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily supported by strong financial performance (growth, profitability, and cash generation). It is meaningfully offset by weak technical momentum (price below key moving averages with bearish MACD) and a relatively expensive valuation (high P/E with low dividend yield).

Positive Factors

Strong revenue and EPS growth

Sustained top- and bottom-line expansion (near 30% revenue growth and ~48% EPS growth) signals durable demand for the company's products and improving operating leverage. Over 2-6 months this momentum supports reinvestment capacity and strengthens competitive positioning in specialty equipment markets.

High-quality cash generation

Notable free cash flow growth and a strong operating cash flow to net income ratio indicate earnings quality and reliable internal funding. This durable cash generation underpins capex for specialized equipment, funds service operations, and provides flexibility to reduce leverage or finance growth over the medium term.

Niche, defensible product & services

A focused product set (glass-lined equipment) and services (installation, refurbishment, maintenance) create high technical barriers, recurring aftermarket revenue, and customer stickiness in chemical/process industries. These structural advantages support steady demand and pricing power over multiple quarters.

Negative Factors

Rising leverage

Although equity and current leverage remain manageable, the documented upward trend in debt raises refinancing and interest coverage risks. If cash flows soften or capex stays high, elevated leverage can constrain strategic flexibility and increase financing costs across the next several quarters.

Declining operating margins

A recent dip in EBIT/EBITDA margins points to emerging operational or mix pressures. If margin erosion persists, it can materially reduce free cash flow and ROE, making it harder to sustain reinvestment, service debt, and preserve profitability through business cycles over the medium term.

Higher capex / reinvestment needs

Rising capex reflects necessary reinvestment into specialized equipment and capacity, which supports growth but also raises cash conversion requirements. Coupled with higher debt, persistent elevated capex can pressure free cash flow and may necessitate external funding or slower deleveraging.

HLE Glascoat Ltd Business Overview & Revenue Model

Company Description

HLE Glascoat Limited designs and manufactures carbon steel glass lined equipment in India and internationally. It offers reactors, receivers, storage tanks, columns, agitators, valves, pipes and fittings, and other similar equipment and related spares and accessories. The company also provides other engineering equipment, such as agitated filters and dryers, rotary vacuum paddle dryers, other chemical process equipment, and related spares and accessories. It serves dyes and pigments, pharmaceuticals, food processing, chemicals, pesticides, intermediates, resins, and other industries. The company was formerly known as Swiss Glascoat Equipments Limited and changed its name to HLE Glascoat Limited in December 2019. HLE Glascoat Limited was incorporated in 1991 and is based in Anand, India.

How the Company Makes Money

HLE Glascoat Ltd generates revenue primarily through the sale of its glass-lined equipment and systems. Key revenue streams include the manufacturing and installation of glass-lined reactors, tanks, and vessels, which are essential for industries that require safe handling of corrosive substances. The company also earns income from its engineering and design services, providing customized solutions tailored to specific client requirements. Additionally, HLEGLAS may engage in long-term maintenance contracts that ensure ongoing service and support for its equipment, creating a recurring revenue stream. Strategic partnerships with industry players and participation in global markets further enhance its earning potential.

HLE Glascoat Ltd Financial Statement Overview

Summary

Strong overall financial health supported by robust revenue growth, solid gross and net margins, and improving ROE. Risks include a recent decline in EBIT/EBITDA margins and rising debt levels that need careful management.

Income Statement

HLE Glascoat Ltd has shown robust revenue growth over the years, with a significant increase from 2020 to 2025. The Gross Profit Margin and Net Profit Margin are strong, indicating effective cost management and profitability. However, there's a slight decline in EBIT and EBITDA margins in the latest year, suggesting potential operational challenges.

Balance Sheet

The company's balance sheet reveals a healthy equity position with a decent Debt-to-Equity ratio, indicating manageable leverage. Return on Equity has been improving, reflecting effective utilization of equity capital. However, the increasing debt levels in recent years may pose a risk if not managed carefully.

Cash Flow

HLE Glascoat Ltd has demonstrated impressive growth in Free Cash Flow over the years, highlighting improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio suggests high-quality earnings, although capital expenditures have also increased, indicating significant reinvestments into the business.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.99B	10.28B	9.68B	9.32B	6.53B	4.86B
Gross Profit	5.01B	4.64B	5.18B	4.99B	3.03B	2.25B
EBITDA	1.56B	1.34B	1.15B	1.44B	1.08B	935.86M
Net Income	555.82M	467.14M	296.87M	698.14M	581.68M	523.20M
Balance Sheet
Total Assets	14.16B	12.93B	12.02B	8.91B	7.60B	3.77B
Cash, Cash Equivalents and Short-Term Investments	625.02M	521.57M	332.86M	274.79M	249.30M	104.92M
Total Debt	3.82B	3.81B	3.90B	2.57B	2.17B	945.62M
Total Liabilities	8.30B	7.39B	7.05B	5.64B	5.07B	2.42B
Stockholders Equity	5.07B	4.59B	4.17B	3.27B	2.54B	1.35B
Cash Flow
Free Cash Flow	514.38M	679.75M	390.92M	-435.87M	-590.78M	160.23M
Operating Cash Flow	745.76M	1.34B	942.62M	48.76M	103.00M	482.37M
Investing Cash Flow	-484.80M	-683.81M	-454.71M	-404.18M	-1.73B	-291.69M
Financing Cash Flow	-288.74M	-596.75M	-182.03M	132.94M	1.60B	-99.04M

HLE Glascoat Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 449.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HLEGLAS, the sentiment is Negative. The current price of 449.7 is above the 20-day moving average (MA) of 315.91, above the 50-day MA of 369.56, and above the 200-day MA of 448.36, indicating a bearish trend. The MACD of -19.73 indicates Negative momentum. The RSI at 25.21 is Positive, neither overbought nor oversold. The STOCH value of 17.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HLEGLAS.

HLE Glascoat Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLEGLAS	64 Neutral	₹20.13B	267.77	―	0.24%	18.87%	99.04%
ANUP	62 Neutral	₹30.17B	43.98	―	0.77%	28.24%	-0.43%
KSB	62 Neutral	₹130.93B	48.57	―	0.51%	9.50%	14.52%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GMMPFAUDLR	61 Neutral	₹38.89B	-155.37	―	0.19%	3.69%	-36.27%
ISGEC	58 Neutral	₹65.25B	24.01	―	0.59%	-4.14%	-35.66%
ROTO	55 Neutral	₹10.59B	47.85	―	0.36%	2.00%	-20.08%

HLE Glascoat Ltd Corporate Events

HLE Glascoat Files Revised Quarterly XBRL Results After NSE Query

HLE Glascoat Ltd has clarified discrepancies in its financial results submitted to the National Stock Exchange of India for the quarter ended 30 September 2025, after the exchange flagged issues under Regulation 33 of SEBI’s listing obligations relating to the format of disclosed figures. The company has now filed revised standalone and consolidated XBRL financial statements containing quarterly, rather than half-yearly, data, aiming to bring its regulatory disclosures into full compliance and reassure market participants about the accuracy and consistency of its reported results.

HLE Glascoat Files SEBI-Mandated Dematerialisation Compliance Certificate

HLE Glascoat Limited has submitted to the stock exchanges a confirmation certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, as issued by its registrar and share transfer agent MUFG Intime India Private Limited. The certificate confirms that all securities received for dematerialisation during the quarter were duly processed, listed on the relevant exchanges, and that physical certificates were cancelled with depository details updated in the register of members within prescribed timelines, underscoring the company’s ongoing compliance with Indian securities market requirements and providing assurance to investors about the integrity of its share transfer and demat operations.