HMT making good time

HMT is a big gainer on the BSE today, up currently over 15% at Rs.32.75, with an intra day high at Rs.34.10. Volumes are pretty huge at almost 3 lakh shares today morning compared t0 around 25,000 shares over last two weeks average.

The stock is up on hopes of a revival plan getting through the Cabinet today. A Rs.1000 crore revival pack is being reportedly worked out by the CCEA which, amongst other things, also involves cash infusion of around Rs.450 crore and non-cash aid of around Rs.630 crore. Surplus land is to be sold for raising funds.

HMT has been in the red for the past five years and it is expected that this package will help it earn over Rs.475 crore in the first year of implementation and Rs.1700 crore by the end of the fifth year of the revival pack. It plans to increase production from current 4500 units to 10,000 units at end of first year and 30,000 by end of fifth year. The revival pack raises hopes for the company’s employees too as it includes a wage revision proposal  and also raising of the retirement age limit from 58yrs to 60yrs.