A part of the Bajaj Auto group, Hercules Hoists manufactures chain pulley blocks, chain electric hoists, wire rope hoists, trolleys, EOT/HOT cranes, light profile crane systems, stacker cranes, lever hoists, roll out racks and winches. Earlier, Hercules Hoists was purely a manufacturing company and Batliboi marketed its products. Now its products are marketed by Indef Marketing Services, catering to clients from the automobile sector, steel, power and cement industries.
Q3 performance was not exactly great, giving us an inkling about what to expect for FY08 and rightly so, the financial performance for year ended 31/03/08 has been on the decline. Its net sales rose 5% at rs.90.70 crore. Increased operating expenses took its toll and the EBIDTA fell 10% at Rs.31.12 crore. And then it has all been downhill. PBT was down 11% at Rs.28.18 crore and PAT was down 16% at Rs.18.28 crore.
As one can see, the financials in no way complement the share price of Rs.2773 for a Rs.10 face value share. This valuation comes purely on the basis of the tiny equity of Rs.1.60 crore, which again is very closely held. Of this tiny equity, the promoters hold 69.49% shares. There is just 30.52% that comes under the public holding but of this also, 8.18% of the shares are held by directors, their relatives and friends. This leaves very little floating stock and that is the sole reason why the share price of the company seems to defy the fundamentals.
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