Haldyn Glass - Rs.75.00

Incorporated in 1991, Haldyn Glass Gujarat Ltd (HGGL), an associate of Haldyn Glass Ltd, is primalarily engaged in the manufacture of glass bottles & glass containers. It manufactures three types of glass namely clear glass, amber and vials. Clear glass is basically used by liquor, cosmetic, soft drinks and the beverage industries whereas pharmaceutical, chemical, food & beverages and liqour companies use amber glass. Vials are used to package injectibles, eye drops, eardrops and other life saving drugs by the pharma sector. As HGGL is one of the largest players, it has a huge clientele including bigges like Mc Dowells, Shaw Wallace, Glaxo, Cipla, Pfizer, Bajaj Sevashram, Camlin, Reckitt & Colman, Cadila, Ranbaxy, Novartis, Wyeth etc. Apart from this, it exports its products to various countries like UAE, Bahrain, Saudi Arabia, Sri Lanka, New Zealand and Singapore among others.

HGGL’s manufacturing plant is located at village Gavasad, Dist. Baroda in Gujarat and is equipped with an automatic batch house, feedback temperature control system for fore hearths, high speed IS (Individual Section) machines, a well- equipped design department and a mould workshop. It also has full-fledged in-house design facilities, which churn out over 500 different shapes and sizes of glass containers. HGGL is likely to revive the setting up of its captive power plant project, which was put on hold sometime back. Though the glass bottle industry is facing stiff competition form usage of PET bottles and aluminium cans, still glass finds use because of its unique properties like re-usability, natural & environmental friendly, high chemical resistance, pressure resistant etc.

Since the user industries like pharma, liquor, cosmetics & food/beverages are growing at a healthy pace, HGGL is expected to maintain a reasonable growth rate. For FY05, the company reported excellent numbers. Its topline grew by 23% but its bottomline quadrupled to Rs.4.80 cr. due to better operating margins. Ironically, its OPM doubled to 27% compared to 14% in FY04 and it even declared a maiden dividend of 15 per cent. Continuing the trend, HGGL posted equally impressive numbers for the June’05 qtr and may end FY06 with Sales of Rs.60 cr. and NP of Rs.7.5 cr. registering an EPS of Rs.14 on its equity of Rs.5.40 cr. In the current bull run, this scrip has the potential to cross Rs.100 in 6~9 months.