Government Waives HOCL's Debt, Stock Soars 20%

Mumbai: The domestic stock market continued its upward trend on Monday, marking the sixth consecutive day of gains. Amid this rally, shares of the government-owned Hindustan Organic Chemicals Limited (HOCL) surged by 20 per cent, hitting the upper circuit. The surge came after the government decided to waive Rs 1,351.38 crore of the company’s outstanding dues.

Stock Hits Rs 32, Market Cap Rises

On the BSE, HOCL’s stock jumped 20 per cent to close at Rs 32.11, up from its previous close of Rs 26.76. Following this sharp rise, the company’s market capitalization increased to Rs 215.69 crore.

Major Decision by the Government

On Friday, HOCL informed the stock exchanges that Parliament had approved the waiver of Rs 1,351.38 crore in dues owed to the government. The Ministry of Chemicals and Fertilizers notified the company on March 21 about this decision. The waiver includes government loans, interest, preferential shares, penalties, and penal interest.

Stock Performance: 393 per cent Returns in Five Years

While HOCL’s stock has fallen by 24 per cent over the past year, its five-year return stands at an impressive 393 per cent, rewarding long-term investors significantly.

52-Week High and Low

In July last year, HOCL’s stock touched a 52-week high of Rs 62.70, but it later dropped to a 52-week low of Rs 22.36 on March 3, 2025.

Decline in Quarterly Results

Despite the stock’s recent surge, the company’s financial performance has shown signs of weakness. In the December quarter, HOCL’s profit fell to Rs 78.99 crore, while revenue declined by 11.6 per cent to Rs 173.15 crore.

What Investors Should Consider

The government’s debt waiver has sparked strong buying interest, leading to a sharp rally in the stock. However, investors should carefully assess HOCL’s fundamentals and upcoming quarterly results before making any investment decisions.