HDIL hits new high again
HDIL has been doing very well since Friday, when it hit a new 52-week high at Rs.70.35 and today too, it hit another new high at Rs.76 and remains strongly in the green, well above 5%.
The stock is making new highs on the back of news that Nomura Singapore, an FII, who has purchased 1.05% or 4.41 million shares of the company on Friday, 4th April through an open market transaction at Rs.67.45/share.
Prior to this, on 27th March, Kotak Securities had purchased 2.13 million shares or 0.5% stake at Rs.51.56/share.
Obviously, despite the dismal Q3FY14 numbers and corporate governance issues, brokerage houses are seeing value in the stock, at least in the long run, which is probably why they are taking these huge positions in the stock.
The company had ended Q3FY14 with a whopping 95% (YoY) drop in net profit at Rs.5 crore where revenue also fell 81% at Rs.79 crore. It books profits or revenues only when projects are completed and since nothing was completed in Q3, it said it had nothing to add to the numbers.
Its debt is at Rs.3640 crore and it had managed to reduce it by Rs.162 crore in previous quarter.