Hindustan Composites, the manufacturer of Asbestos Industrial Products and Friction Materials, share price rose 10% intraday on April 16 after the company resumed partial operations at its Aurangabad unit.
The stock has gained more than 40% after hitting multi-year lows on March 23. It was trading at Rs 142.75, up Rs 12.75, or 9.81%, on the BSE.
After getting permission from the local administration, the company resumed partial operations at Paithan plant, Aurangabad, from April 16, Hindustan Composites told BSE.
The company suspended all work at all its manufacturing units from March 23 as a safety measure to contain the spread of the coronavirus.
Hindustan Composites current valuations look attractive. It’s price to earnings ratio of 17.88, based on the last twelve months, is equivalent to an earnings yield of 5.6%.
Though, the recent drop in Hindustan Composites earnings per share might keep value investors away, but the relatively strong balance sheet will allow the company time to invest in growth.
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