Govt’s big relief for HOCL! Stock jumps 20% after debt write-off
The government waived Rs 1,351.38 crore of HOCL's arrears, prompting a 20 per cent stock jump to Rs 32.11. Although it fell 24 per cent in a year, the stock gave 393 per cent returns over five years, although recent quarterly earnings and revenues declined.
Mumbai: The local stock market continued in its rising trend on Monday, the sixth day in a row of rising from lows. During this rally, stocks of government-owned Hindustan Organic Chemicals Limited (HOCL) rose by 20 per cent to the upper circuit. The stocks rose after the government waived Rs 1,351.38 crore of outstanding dues of the company.
Stock Reaches Rs 32, Market Cap Swells
HOCL's stock on the BSE surged 20 per cent to Rs 32.11, from its last close of Rs 26.76. With this sudden leap, the market capitalization of the company grew to Rs 215.69 crore. On Friday, HOCL alerted the stock markets that Parliament has cleared the waiver of Rs 1,351.38 crore of dues that the company owed to the government. The government informed the company on March 21 about the decision. Waiver covers government loans, interest, preferential shares, penalty, and penal interest. Although HOCL's share has dipped 24 per cent in the last one year, its five-year return is a whopping 393 per cent, benefiting long-term investors substantially.
52-Week High and Low
In July the previous year, HOCL's share reached a 52-week high of Rs 62.70, but subsequently fell to a 52-week low of Rs 22.36 on March 3, 2025. Decline in Quarterly Results. Even though the stock rose recently, the financial performance of the company has weakened. The profit at HOCL dropped to Rs 78.99 crore during the December quarter, and revenue decreased 11.6 per cent to Rs 173.15 crore.The debt waiver by the government has generated good buying interest, and the stock has rallied sharply. But investors need to cautiously evaluate HOCL's fundamentals and future quarterly performance before investing in the stock.
