HP Adhesives shares zoom 7% as board to consider stock split

Shares of HP Adhesives Ltd zoomed ended nearly 6% higher today after the firm said it would hold a board meeting on September 4 to consider a stock split or sub-division of shares. Subsequently, the specialty chemicals stock hit a record high of Rs 538.20, rising 7 per cent intraday on BSE. The market cap of the firm rose to Rs 977.27 crore on  BSE. Later, the HP Adhesives stock closed 5.74% higher at Rs 531.85.  

A total of 0.97 lakh shares of the firm changed hands, amounting to a turnover of Rs 5.50 crore. The HP Adhesives stock has risen 21 per cent in a year and gained 40 per cent in 2023.  

The share hit a 52 week low of Rs 309.80 on March 2, 2023.  

In terms of technicals, the relative strength index (RSI) of HP Adhesives stands at 68.9, signaling it's trading neither in the oversold nor in the overbought territory. HP Adhesives stock has a one-year beta of 0.8, indicating very low volatility during the period. Shares of HP Adhesives are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. 

“HP Adhesives Ltd has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 04/09/2023 ,inter alia, to consider and approve Pursuant to Regulation 29(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that a meeting of the Board of Directors of the Company will be held on Monday, 04th September, 2023, to consider and approve, inter-alia, a proposal for alteration of Equity Share Capital of the Company by way of subdivision/ splitting its existing Equity Shares having a face value of Rs. 10/- each, fully paid up in such manner as may be determined by the Board of Directors pursuant to the provisions of Section 61(1)(d) of Companies Act, 2013 and subject to the approval of Shareholders of the Company and /or any other regulatory/statutory approvals, as may be required,” said the firm in a communication to BSE.  

HP Adhesives reported a consolidated net profit of Rs 4.5 crore in Q1, clocking a rise of 221 percent from Rs 1.4 crore profit a year back.  However, revenue fell to Rs 60.3 crore in Q1 from Rs 62.8 crore in the year-ago quarter. 

HP Adhesives is a leading provider of adhesives and sealants, headquartered in India. The company was founded by entrepreneur Haresh Motwani during the early stages of the plastic industry. It has grown into a renowned brand in plumbing adhesives.

Also watch: Coal India, ONGC, Chennai Petroleum, REC: Top 11 dividend-yielding PSU stocks 

Also read: Hot stocks on August 17, 2023: Adani Power, Suzlon Energy, IRFC, Cipla and more

Also read: YES Bank, Tata Steel, SBI, Infosys, LIC, IRCTC shares: 11 of 15 top retail stock bets disappoint in 2023