📌 At a Glance

Haldyn Glass — the company quietly bottling your cough syrup, whiskey, and ketchup — clocked ₹382 Cr in revenue in FY25, a jump from ₹178 Cr in FY21. But despite higher topline and OPMs rising to 14%, PAT dropped 24% YoY in FY25. Investors are asking: Is this just margin pressure… or a crack in the glass?

🧵 About the Company

Founded in 1991, Haldyn Glass Ltd (HGL) makes Soda Lime Flint & Amber glass containers. Fancy terms aside, it manufactures those transparent (or brownish) bottles that hold:

• 🍾 Liquor
• 💊 Pharma meds
• 🥫 Food products
• 🧴 Cosmetics

They don’t sell brands, they make the bottles that sell the brands. It’s a boring biz — unless you’re into EBITDA margins and packaging logistics.

Parent company Haldyn Corporation Ltd owns ~54% stake, and HGL has been around long enough to see the glass industry go from “massive margins” to “massive meltdowns.”

👨‍💼 Key Managerial Personnel (KMP)

• Chairman: R.R. Shah
• MD: Sameer Shah
• New CFO: Jitendra Karamchandani (appointed May 2025)

Leadership shuffle is underway — outgoing CFO oversaw peak earnings in FY23–24, while the new appointee has to steer through falling PAT and interest outgo worries.

💰 5-Year Financials (FY21–FY25)

📉 FY25 PAT down 24% YoY
📈 Revenue up 27% YoY
⚖️ Debt halved in FY25 – from ₹123 Cr to ₹59 Cr

📊 5-Year Stock Return Summary

• June 2020 Price: ₹30
• June 2025 Price: ₹102
• 🔺 Return: +240%
• 📈 5-Year CAGR: ~28.5%

Strong compounding for a smallcap, but the ride hasn’t been smooth. Stock is down 25% in 1 year, reflecting pressure from margin dips and inventory buildup.

🧮 Forward-Looking Fair Value (FY26–FY27)

Assumptions:

• FY26 Revenue CAGR: 12%
• PAT margins stabilize at 6–7%
• Industry P/E: 20–22x for packaging/glass peers

Projected EPS FY26: ₹4.0–₹4.5
Fair Value Range: ₹80–₹99

⚠️ CMP is ₹102 → Slightly above upper range already.

So… either the market expects a surprise PAT rebound — or it’s pricing in premium because glass stocks are suddenly hot (they’re not).

🔭 Growth Outlook

• 🏗️ New capacity expansion from FY23–24 is stabilizing
• 💊 Pharma + liquor demand remains steady, but glass faces competition from PET/plastic
• 🧮 Improved working capital mgmt, with debtor days under control
• 🏦 Debt reduced = positive signal

📦 But inventory days ballooned to 335 days in FY25 — that’s a LOT of unsold bottles.

😎 EduInvesting Take

“Haldyn Glass is that kid who did great in 2023, joined tuition in 2024, and flopped finals in 2025.”

• Q: Can it bounce back?
• A: Yes, if interest cost doesn’t eat the profits again
• Q: Should you fall in love with it?
• A: Not unless you like glass that’s slightly… cracked.

It’s an interesting low-float packaging play, but at P/E 29, it’s already priced for perfection — which FY25 results clearly weren’t.

⚠️ Risks & Red Flags

• ⚖️ Inventory levels = high (shelf clog alert!)
• 💸 ROE and ROCE stagnating around 9–13%
• 🔁 No pricing power against big liquor/pharma players
• ⚠️ EPS on a 2-year decline
• 🛢️ Energy prices directly affect glass melting costs

🎯 Verdict

Unless margins jump or capacity expansion leads to pricing benefits, Haldyn Glass looks more like a slow compounder than a breakout multibagger. Keep an eye on Q1 FY26 – if PAT doesn’t improve, investors might finally see through the… well… glass.

🗓️ Date: 8 June 2025
✍️ Author: Prashant Marathe
🏷️ Tags: Haldyn Glass, Packaging Sector, Smallcap Recap, FY25 Results, Glass Manufacturing, 5-Year Recap