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HMT soars on reports of revival plan for subsidiaries

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Capital Market
Last Updated : Mar 05 2016 | 12:01 AM IST

HMT surged 15.04% to Rs 48.20 at 12:35 IST on BSE after reports that the government is looking to revive two of its loss-making subsidiaries, Heavy Engineering Corporation and HMT Machine Tools, due to their strategic importance.

Meanwhile, the BSE Sensex was up 6.75 points, or 0.03%, to 24,613.74.

More than usual volumes were witnessed on the counter. On BSE, so far 2.62 lakh shares were traded in the counter, compared with an average volume of 67,119 shares in the past one quarter. The stock hit a high of Rs 60.05 and a low of Rs 50.80 so far during the day. The stock hit a 52-week high of Rs 77.80 on 15 January 2015. The stock hit a 52-week low of Rs 33.65 on 9 June 2015. The stock had underperformed the market over the past one month till 3 March 2016, dropping 5.63% compared with the Sensex's 1.58% rise. The stock also underperformed the market in past one quarter, falling 23.4% as against 4.94% fall in the Sensex.

The mid-cap company has an equity capital of Rs 1204.09 crore. Face value per share is Rs 10.

Meanwhile, the government in January 2016 had approved closure of three loss making subsidiaries of HMT, namely HMT Watches, HMT Chinar Watches and HMT Bearings after separation of about a thousand employees through attractive VRS/VSS and settlement of their dues.

HMT reported net loss of Rs 23.88 crore in Q3 December 2015 as against net loss of Rs 23.37 crore in Q3 December 2014. Net sales declined 24.3% to Rs 10.91 crore in Q3 December 2015 over Q3 December 2014.

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Incorporated in 1953, by the Government of India as a Machine Tool manufacturing company, it later diversified into watches, tractors, printing machinery, metal forming presses, die casting & plastic processing machinery, CNC systems & bearings.

The Government of India holds 90% stake in the firm as at 31 December 2015.

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First Published: Mar 04 2016 | 12:36 PM IST

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