1. At a Glance
HLE Glascoat is where heavy-duty industrial engineering meets a luxury-goods price multiple. They make glass-lined equipment, filters, and dryers — the sort of kit that chemical, pharma, and agro players can’t live without. FY25 revenue? ₹1,028 Cr. OPM? 13%. P/E? A nosebleed-inducing 62.8x. ROCE? 12.2% — not bad, but certainly not “luxury goods” territory. Recently bought a German surface tech company for €29,000 (about the cost of a Mumbai 2BHK annual rent in Bandra).
2. Introduction
Born in the niche but globally relevant market for corrosion-resistant process equipment, HLE Glascoat has been a consolidation story — combining Glascoat India and HLE Engineers in 2019 to become a single listed entity.
The game plan:
- Build a specialty industrial products moat in glass-lined equipment & filtration.
- Push exports.
- Keep the capex rolling for capacity expansions.
The stock, however, has been more volatile than their annual dividend payout policy — from ₹218 lows to ₹485 highs in the past year.
3. Business Model (WTF Do They Even Do?)
- Glass-Lined Equipment (GLE): For corrosive processes — think reactors, storage tanks.
- Filters & Dryers: Vital in chemical, pharma, and API manufacturing.
- Custom Engineering: Tailored industrial kit for niche needs.
- Geography: Primarily India, with a sprinkling of export orders.
Revenue is project-driven with long sales cycles, which means quarterly results can
swing like a pendulum.
4. Financials Overview
Fresh P/E Calculation (TTM EPS):
- FY25 EPS: ₹6.84
- Q4 FY25 EPS (Mar ’25): ₹1.86
- Q1 FY26 EPS (Jun ’25): ₹2.98
- TTM EPS = (₹6.84 – ₹1.86) + ₹2.98 = ₹7.96
- CMP ₹430 → Fresh P/E ≈ 54.0 (already lower than the screener’s stale 62.8x).
FY25 Snapshot:
| Metric | FY25 | YoY Change |
|---|---|---|
| Revenue | ₹1,028 Cr | +6% |
| EBITDA | ₹134 Cr | +17% |
| PAT | ₹62 Cr | +51% |
| OPM | 13% | Flat |
| ROCE | 12.2% | Flat |
Commentary:
Revenue growth slowed to single digits, but PAT shot up due to better margin mix and lower effective tax. Debt remains chunky at ₹381 Cr, interest costs eating into operational gains.
5. Valuation
Method 1 – P/E Multiple:
- Sector median ≈ 38x
- Apply premium for niche industrial dominance → 45x fair P/E
- FV = ₹7.96 × 45 ≈ ₹358
Method 2 – EV/EBITDA:
- EV = ₹2,936 Cr MCap + ₹381 Cr Debt – ₹134 Cr Cash ≈ ₹3,183 Cr
- EBITDA = ₹134 Cr
