HMT was locked at 20% upper circuit at Rs 36.75 at 12:44 IST on BSE on reports that government may rethink its decision to close the loss-making HMT Watches as demand for watches is picking up.
Meanwhile, the S&P BSE Sensex was up 7.60 points or 0.03% at 26,858.65.
The stock spurted on heavy volumes. On BSE, so far 5.88 lakh shares were traded in the counter as against average daily volume of 71,227 shares in the past one quarter.
The stock hit a low of Rs 31 so far during the day. The stock had hit a 52-week high of Rs 59.15 on 8 July 2014. The stock had hit a 52-week low of Rs 24.65 on 4 February 2014.
The stock had underperformed the market over the past one month till 23 October 2014, declining 11.93% compared with Sensex's 0.28% rise. The scrip had also underperformed the market in past one quarter, sliding 36.08% as against Sensex's 2.69% rise.
The small-cap company has equity capital of Rs 760.35 crore. Face value per share is Rs 10.
According to reports, there has been an unprecedented demand for timepieces manufactured by HMT Watches after reports that HMT Watches may be wound up made headlines. The nostalgia-driven clamour has led the government to rethink its decision to close the loss-making public sector company, reports added.
HMT Watches, a wholly owned Subsidiary of HMT, is an unlisted company.
HMT reported a net loss of Rs 23.32 crore in Q1 June 2014, lower than net loss of Rs 38.87 crore in Q1 June 2013. Net sales rose 13.1% to Rs 13.03 crore in Q1 June 2014 over Q1 June 2013.
HMT was incorporated in 1953 by the Government of India as a machine tool manufacturing company. Over the years, the company diversified into watches, tractors, printing machinery, metal forming presses, die casting & plastic processing machinery, CNC systems and bearings. Government owned 90% stake in HMT (as per shareholding pattern as on 30 June 2014).
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