Small-cap stock under ₹50 hits 20% upper circuit as govt waives off dues worth ₹1,351 crore

Small-cap stock under ₹50: Shares of state-owned Hindustan Organic Chemicals (HOCL) witnessed a sharp rally in early morning trade on Monday, reaching the upper circuit limit of 20% after the Government of India waived off dues amounting to ₹1,351.38, which are expected to positively influence its financials.

The small-cap company, having a market capitalisation of just ₹215 crore, in an exchange filing late Friday night said, “Ministry of Chemicals & Fertilizers, Government of India vide Order No.1600/9/2024-IFD dated 21.03.2025 received by us today late evening informed that the Parliament has approved waiving off of Government of India dues of HOCL amounting to Rs.1,351.38 crore as on 30.09.2024.”

The dues consist of a loan by the government, the internet on said loan, preference shares, interest or penalty on the said preference shares and penal interest on the GoI loan. The said write-off is expected to have a positive impact on the financials of HOCL, said the company.

HOCL share price trend

Following this update, shares of the public sector enterprise (PSU) jumped 20% to hit its upper price band on the BSE at ₹32.11 apiece against its previous closing price of ₹26.76.

Hindustan Organic Chemicals share price despite today's rise has fared poorly in the last one year, shedding as much as 24% during this period as against a 7% rise in the BSE barometer Sensex. However, in the past five years, the scrip has surged 393%, delivering multibagger returns to investors.

The stock hit a 52-week high of ₹62.70 in July last year and a 52-week low of ₹22.36 on March 3, 2025, on the BSE.

For the quarter ended December 2024, the company posted a sharp decline in profit to ₹78.99 crore while its revenue witnessed an 11.6% fall year-on-year to ₹173.15 crore.

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