TECHNICAL AND FUNDAMENTAL

analysis

HINDUSTAN NATIONAL GLASS

LIMITED

Subject
INVESTMENT MANAGEMENT

Submitted by – Gaurav Mukhi

(ROLL NO. PGMB1960)

Under the supervision

of
Prof. AK PURI

JAIPURIA INSTITUTE OF MANAGEMENT

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)

6TH SEPTEMBER, 2020

INTRODUCTION
HNG was founded by Mr. C K Somany in 1946 following the commissioning of
India’s first fully automated glass manufacturing plant at Rishra (near Kolkata). At
present, it is the key player in India’s container glass industry with a pan India
presence and its plants located at Rishra, Bahadurgarh, Rishikesh, Neemrana, Nashik
and Puducherry. HNG has captured a large share of the Indian market and has an
increasingly satisfied client base in more than 23 countries.     
      
Strategy: We are the largest container glass solutions provider in India, and we look
forward to be a global leader in container glass packaging industry. Our strategy is to
create world class products, so that we can satiate the demands of our consumers and
thus, surpass our contemporaries in competition. It is with our integrated efforts and
customer service that we have managed to keep our growth rate on an upward swing;
in spite of the present economic turmoil, which has adversely affected people's lives
and ways in which business is being conducted.       

Objectives: At HNG, we look forward to customer satisfaction. Our main objective is

to ameliorate our customers and stakeholders, and in the process strengthen the roots
of our organization, so that we can emerge as a behemoth in the glass packaging
industry.
           
Values: As we climb the success ladder, it is becoming increasingly important for us
to define our core values, as it is our values that help us remain grounded and focused
towards our goals. It gives us a definite purpose and enables us to make the most of
our resources.

At HNG, we believe in the core values of people, operational excellence, innovation

and integrity.  
 
  It is our people that give us the gusto to move forward, keeping all the obstacles at
bay. With our diligent workforce, production has become so much easy!
    
  Our operational excellence has given us the strength to launch our products with
even more confidence. We have an installed capacity of 4395 TPD and this is what
distinguishes us from our competitors.
    
  Innovation and integrity are two important things that drive the HNG team. These
values are like assets that consolidate us in our march towards a greater future.
    
The benefits of light-weight container glass bottles:
- Accelerated bottling process
- Increased bottles per ton
- Reduced price per bottle
- Improved bottle quality
- Enhanced availability
- Reduced transportation cost
- Enhanced bottle transparency
- Increased strength following uniform and optimum wall thickness

SWOT ANALYSIS

STRENGHT
 Annual Net Profits improving for last 2 years
WEAKNESS
 Red Flag: High Interest Payments Compared to Earnings
 
 Decline in Net Profit with falling Profit Margin (QoQ)
 
 Decline in Quarterly Net Profit with falling Profit Margin (YoY)
 
 Degrowth in Quarterly Revenue and Profit in Recent Results(YoY)
 
 Declining Revenue every quarter for the past 4 quarters
 
 Declining profits every quarter for the past 2 quarters
OPPORTUNITIES
 Stock with Low PE (PE < = 10)
THREATS
 Degrowth in Revenue, Profits and Operating Profit Margin in recent
results (QoQ)
 PORTER’S FIVE FORCES ANALYSIS

BARRIERS:
HIGH
> Huge capital
investment required
>Substantialn barriers
in achieving
economies of scale

Rivalry SUPPLIERS'
LOW POWER
>Oligopolistic MODERATE
market with big >Few major players
players contolling comprise of more than
supply 50% of production

SUBSTITUTE'S BUYER'S POWER

THREAT LOW
LOW >Substantial market
concentrationin the
>Substitutes of glass are
hands of few players.
wood and steel but no
direct substitute
 PART – 1
FUNDAMENTAL
ANALYSIS
INCOME STATEMENT OF INDUSTRY

Income of Hindustan National Glass Limited

BALANCE SHEET OF HINDUSTAN NATIONAL GLASS
LIMITED AND INDUSTRY

Industry Hindustan Glass

RATIO ANALYSIS ON BASIS OF INCOME STATEEMNT
AND BALANCE SHEET

Current ratio
Industry

Hindustan Glass

Analysis: Current ratio of the company and industry both indicates that ratio is
continuously growing but and ratio is more than 1 that means they can cover the short-
term obligation but company’s current ratio is less then industry current ratio that
mean company need more liquidity to match with industry.

Acid test ratio

Industry

Hindustan Glass
Analysis: Acid test ratio of company and industry both are less than 1 which indicates
that they don’t have enough liquidity to pay their liquidity they should treat with
caution and also their acid test ratio is less than current ration which means their
current assets are highly dependent on inventory company’s acid test ratio is slightly
less than industry acid test ratio.

Debt equity ratio

Industry

Hindustan Glass

Analysis: Debt to equity ratio of company and industry both are more than 1 in the
last three years which indicates company’s and industry assets are funded by the debt
and year of 2016 and 2015 debt to equity ratio of industry was less than 1 which
shows at that time more assets are funded by the equity.

Debt ratio
Industry

Hindustan Glass
Analysis: Debt ratio of company and industry both are good and below 1 that show
company and industry both has more assets than the debt, but it shown in the table that
debt ratio is increasing slightly year by year.
Interest coverage ratio
Industry

Hindustan Glass

Analysis: Interest coverage ratio of the industry is very good than the company.
Company’s interest coverage ratio is growing but they are questionable at the point of
paying the interest of debt. Ability to meet interest obligation is an aspect of solvency
and is thus very important factor in the return for shareholder.

Gross profit margin ratio

Industry

Hindustan Glass
Analysis: Gross profit margin ratio of the company is higher than in the last two year
and they are making more profit than the industry. It’s a very good factor for investors
to invest in the company.

Net profit margin ratio

Industry

Hindustan Glass

Analysis: Net profit margin of the company in 2015 to 2017 were very bad they are
spending more than their income but its increased in 2018 and 2019 still they failed to
touch the standard ratio of the industry (0.0

ROA RATIO
Industry

Hindustan Glass

Analysis: Industry is making average 10% profit on assets but company failed to
make profit from assets in 2015 to 2017 and they grow in the last two year (2018-19)
and they making more than 20% profit on their assets.
ROCE RATIO
Industry

Hindustan Glass

Analysis: In the year of 2015 to 17 companies ROCE is bad they were failed earn
money from capital employs but in 2018 their ROCE is increased and takes place at
14% and in the 2019 they maintained the standard ROCE. Now company is earning
good money on its capital employed.

ROE Ratio
Industry

Hindustan Glass
Analysis: Industry ROE is average 14 % they are making good profit but in the year
of 2015 to 2017 company failed to make profit on ROE, but profit increased in last
two years.

PART -2
TECHNICAL ANALYSIS
LAST 5 YEARS HINDUSTAN GLASS LTD

Month Open Price High Price Low Price Close Price

01-09-2015 94.50 94.50 92.00 94.35
01-10-2015 85.55 102.00 85.55 93.00
01-11-2015 94.00 94.95 88.10 91.00
01-12-2015 91.50 97.30 81.05 89.80
01-01-2016 89.65 96.00 77.00 79.95
01-02-2016 81.00 86.90 60.05 64.00
01-03-2016 66.00 89.60 66.00 76.35
01-04-2016 79.95 85.40 73.00 77.00
01-05-2016 75.00 93.60 75.00 77.70
01-06-2016 82.00 87.90 76.00 86.85
01-07-2016 82.80 104.30 82.80 90.15
01-08-2016 89.30 110.10 76.95 110.10
01-09-2016 124.95 155.75 90.05 94.20
01-10-2016 98.85 123.00 95.25 107.05
01-11-2016 112.00 116.50 88.00 100.25
01-12-2016 104.00 124.20 96.05 106.00
01-01-2017 108.70 147.95 101.60 120.40
01-02-2017 117.10 134.90 114.00 119.80
01-03-2017 122.00 131.00 104.60 105.05
01-04-2017 109.00 116.90 103.50 108.30
01-05-2017 108.30 112.85 83.95 85.60
01-06-2017 85.60 94.95 75.90 88.85
01-07-2017 92.95 98.90 85.45 90.00
01-08-2017 92.90 94.00 74.00 82.00
01-09-2017 82.00 91.85 75.95 90.50
01-10-2017 90.50 138.00 84.10 122.65
01-11-2017 130.00 143.95 117.00 130.00
01-12-2017 133.90 191.80 130.00 150.35
01-01-2018 151.75 177.00 151.25 160.70
01-02-2018 155.00 171.00 118.40 126.05
01-03-2018 128.00 129.75 96.70 106.25
01-04-2018 112.00 117.00 97.95 98.10
01-05-2018 98.10 100.50 81.50 84.00
01-06-2018 84.00 109.85 70.00 88.20
01-07-2018 97.00 102.95 73.70 80.25
01-08-2018 82.40 138.70 77.70 123.00
01-09-2018 121.10 125.65 87.00 88.80
01-10-2018 83.50 90.00 77.00 80.55
01-11-2018 78.30 84.90 76.60 78.85
 01-12-2018 80.00 88.50 73.00 81.30
01-01-2019 80.00 112.00 75.10 93.00
01-02-2019 95.80 101.00 79.00 88.90
01-03-2019 88.05 98.00 73.00 82.30
01-04-2019 82.75 88.20 77.10 78.25
01-05-2019 78.25 79.80 64.80 67.05
01-06-2019 67.95 68.00 27.05 27.05
01-07-2019 28.00 28.80 17.10 23.40
01-08-2019 24.50 24.70 20.60 22.95
01-09-2019 22.95 41.90 21.50 40.00
01-10-2019 41.85 41.85 29.15 35.00
01-11-2019 36.50 36.95 26.60 28.95
01-12-2019 29.85 37.05 23.50 34.80
01-01-2020 34.85 40.10 30.10 36.85
01-02-2020 36.80 38.55 32.00 35.00
01-03-2020 32.05 34.85 25.00 27.65
01-04-2020 29.00 39.05 27.10 29.65
01-05-2020 29.50 32.00 25.55 28.45
01-06-2020 29.00 48.30 28.35 33.25
01-07-2020 32.50 37.00 29.60 30.00
01-08-2020 29.50 30.80 27.25 27.70
01-09-2020 27.65 28.80 26.65 27.75

2ND QTR FINANICIAL DATA 2020-2021

Date Open Price High Price Low Price Close Price

04-06-2020 30.05 31.95 28.60 31.20
05-06-2020 29.05 32.50 28.35 32.20
08-06-2020 37.00 38.60 31.00 38.60
09-06-2020 44.95 46.30 36.60 46.30
10-06-2020 48.00 48.30 41.70 42.45
11-06-2020 39.00 44.90 38.25 38.90
12-06-2020 38.90 39.95 35.35 37.80
15-06-2020 37.75 38.85 35.20 36.90
16-06-2020 38.50 38.50 35.00 35.85
17-06-2020 36.95 37.00 34.10 35.85
18-06-2020 36.00 37.00 34.50 36.65
19-06-2020 35.50 36.00 35.05 35.50
22-06-2020 35.50 36.00 34.05 34.70
23-06-2020 35.25 36.00 34.50 35.10
24-06-2020 35.10 36.60 34.10 36.35
25-06-2020 36.35 36.95 34.80 34.95
26-06-2020 36.50 36.50 34.50 34.65
29-06-2020 35.00 35.00 32.95 33.25
30-06-2020 32.95 33.70 31.60 33.25
01-07-2020 32.50 32.50 31.60 32.00
02-07-2020 31.40 33.60 31.40 33.60
03-07-2020 35.25 35.25 35.20 35.25
06-07-2020 35.60 37.00 34.20 35.50
07-07-2020 36.20 36.55 33.85 34.05
08-07-2020 34.05 34.05 32.90 33.95
09-07-2020 33.65 33.90 32.80 32.80
10-07-2020 32.80 32.80 31.55 32.50
13-07-2020 32.00 33.00 32.00 33.00
14-07-2020 33.25 33.25 31.50 32.70
15-07-2020 31.35 32.00 31.35 31.90
16-07-2020 31.90 32.25 31.50 31.55
17-07-2020 32.50 32.50 31.50 31.50
20-07-2020 32.00 32.10 30.60 30.60
21-07-2020 30.70 32.10 30.70 32.10
22-07-2020 31.85 31.90 30.55 30.95
23-07-2020 30.65 31.70 30.50 31.35
24-07-2020 30.50 31.00 30.50 31.00
27-07-2020 30.40 30.95 30.40 30.50
28-07-2020 30.60 30.95 29.60 29.85
29-07-2020 30.65 30.95 30.00 30.00
30-07-2020 31.00 31.00 30.50 30.50
31-07-2020 31.35 31.35 29.60 30.00
03-08-2020 29.50 30.80 28.50 28.75
04-08-2020 30.00 30.00 28.75 28.75
05-08-2020 30.15 30.15 28.60 29.00
06-08-2020 28.60 29.50 28.60 29.50
07-08-2020 29.50 29.50 28.30 28.80
10-08-2020 28.80 30.20 28.00 28.00
11-08-2020 27.25 29.35 27.25 28.40
12-08-2020 28.40 28.80 28.00 28.05
13-08-2020 28.00 28.50 28.00 28.45
14-08-2020 28.45 28.95 27.70 28.45
17-08-2020 28.45 28.45 27.50 27.85
18-08-2020 27.70 28.00 27.25 27.85
19-08-2020 28.00 28.00 27.30 27.40
20-08-2020 27.25 28.00 27.25 27.95
21-08-2020 28.70 29.30 27.30 28.90
24-08-2020 30.30 30.30 28.30 28.60
25-08-2020 28.50 29.65 27.95 28.70
26-08-2020 28.50 29.45 27.55 28.70
27-08-2020 28.70 30.00 28.05 28.95
28-08-2020 28.15 29.00 28.00 28.30
31-08-2020 27.50 28.90 27.50 27.70
01-09-2020 27.65 28.00 26.65 27.70
02-09-2020 27.30 28.50 27.30 27.75
03-09-2020 27.35 28.00 27.35 27.50

MACD ANALYSIS LONG TERM

MACD INDICATOR
15

10

0
1 1 1 1 2 3 4 5 6 7 8 9 1 1 1 1 2 3 4 5 6 7 8 9 1 1 1 1 2 3 4 5 6 7 8 9
-5

-10

-15

-20

-25

 MACD line and signal line both are below the zero line that indicate market is
bearish
 MACD line is crossing the signal line which means investors should invest
more in this stock.

MACD ANALYSIS SHORT TERM

 Short Term MACD
0.5

0
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
/9 /13 /15 /17 /21 /23 /27 /29 /31 8/4 8/6 /10 /12 /14 /18 /20 /24 /26 /28 9/1 9/3
7-0.5 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8

-1

-1.5

-2

 In the short term MACD and signal line both are above the zero line that show
shows strong market in short term
 Signal line is crossing the MACD line that indicate investors should buy the
stocks.

RSI ANALYSIS LONG TERM

RSI
80.00

70.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00
6 7 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0 0 0 0 0
01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 02 02 02 02 02
1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2 1/2
/ 1/ 3/ 5/ 7/ 9/ 1/ 1/ 3/ 5/ 7/ 9/ 1/ 1/ 3/ 5/ 7/ 9/ 1/ 1/ 3/ 5/ 7/ 9/
11 1 1 1

ANALYSIS:
 RSI of the stock is neither in the zone of 0-30 so here is no chances of stock
being oversold
  RSI is also not in the range of 70-100 so there are also no chances of being
over bought
 Ideal range of investing in the stock is when the RSI is varying in between 30-
70 which is good for the company and people can invest in it.
 RSI is varying between 30 to 70 from last 5 year that shows a good time invest
in long term

RSI ANALYSIS SHORT TERM

RSI-SHORT TERM
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
24 26 30 /2 /6 /8 10 14 16 20 22 24 28 30 /3 /5 /7 11 13 17 19 21 25 27 31 /2
6/ 6/ 6/ 7 7 7 7/ 7/ 7/ 7/ 7/ 7/ 7/ 7/ 8 8 8 8/ 8/ 8/ 8/ 8/ 8/ 8/ 8/ 9

ANALYSIS:
 RSI of the stock is neither in the zone of 0-30 so here is no chances of stock
being oversold
 Ideal range of investing in the stock is when the RSI is varying in between 30-
70 which is good for the company and people can invest in it.
  RSI in short term varying between 30 to 70 since and the investors should grab
the opportunity.

CANDLE STICK ANALYSIS LONG TERM

Long Term Candle Stick

250.00

200.00

150.00

100.00

50.00

0.00
15 15 16 16 16 16 16 16 17 17 17 17 17 17 18 18 18 18 18 18 19 19 19 19 19 19 20 20 20 20
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
9/ 11/ 1/ 3/ 5/ 7/ 9/ 11/ 1/ 3/ 5/ 7/ 9/ 11/ 1/ 3/ 5/ 7/ 9/ 11/ 1/ 3/ 5/ 7/ 9/ 11/ 1/ 3/ 5/ 7/

ANALYSIS:
From Oct 2019 till date the price has not crossed Rs.40 which means that the price
started to fall from the last quarter of FY 2017-18
As visible in the chart the red candlesticks are more which implies bearish trend for
the stock prevailing in the stock market
The shadow of the candlesticks is not very large which indicates that price of the stock
was quite stable on the trading hours throughout the analysed data
The stock price has decreased by almost 75% since January 2018

CANDLE STICK ANALYSIS SHORT TERM

 Short Term Candlestick
60.00

50.00

40.00

30.00

20.00

10.00

0.00
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
4 /9 12 17 22 25 30 /3 /8 13 16 21 24 29 /3 /6 11 14 19 24 27 /1
6/ 6 6/ 6/ 6/ 6/ 6/ 7 7 7/ 7/ 7/ 7/ 7/ 8 8 8/ 8/ 8/ 8/ 8/ 9

Close Price

ANALYSIS:
The market in short term is also bearish but the level of fall of prices were
considerably low when compared with long term.
 Candle sticks are certain between June to September and market is indecisive
 Share prices has hit 12 weeks low i.e. 28rs approx.
 Stock has fallen by more than 10% in last two weeks from its highest level of
30.05 dt 27-Aug-20.

BOLLINGER BAND ANALYSIS

 Bollinger Band
180.00
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
15 15 16 16 16 16 16 16 17 17 17 17 17 17 18 18 18 18 18 18 19 19 19 19 19 19 20 20 20 20
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
9/ 11/ 1/ 3/ 5/ 7/ 9/ 11/ 1/ 3/ 5/ 7/ 9/ 11/ 1/ 3/ 5/ 7/ 9/ 11/ 1/ 3/ 5/ 7/ 9/ 11/ 1/ 3/ 5/ 7/

Close Price

ANALYSIS:

 In the Chart Above Red Line Sows the Upper Band, Green Line Shows the
Lower Band, Black Line shows the Median or the Medium Band.
 A Bollinger Band is a technical analysis tool defined by a set of trendlines
plotted two standard deviations (positively and negatively) away from a simple
moving average (SMA) of a security's price,
 When the Candle sticks touches the lower Band, it is the right time to buy the
stocks because when the stock touches the lower band after that major chances
is that the stock prices would go up
 When the Candle Sticks touches the Upper Band that time people should Sell
their stocks because major chances is that the stock price would come down so
it works as an indicator when the investor should Buy the stocks and when the
investor should Sell the Stocks
 In this chart none of the bands are touching each other so it’s an indecisive
market trend.