1:5 Stock Split: Stock hits 20% upper circuit after announcing record date for share split

Synopsis: Micro-Cap company shares surged 20% after announcing a record date for its 1:5 stock split, and its net profit soared 3,160.8% YoY to ₹15. Along with it, the company also approved an expansion of its Mandideep plant.

The shares of the Micro-Cap company specializing in the manufacturing and sale of electrical overhead conductors, high-tension (HT) insulators, and specialized epoxy resins, are in focus as they have rallied 20 percent in the day’s trade after fixing a record date for its 1:5 Stock Split.

With a market capitalization of Rs. 339.58 Crores on the Day’s Trade, the shares of Hindusthan Urban Infrastructure Ltd hit a 20 percent upper circuit, reaching a high of Rs. 2353.50 compared to its previous close of Rs. 1961.25.

What Happened

Hindusthan Urban Infrastructure Ltd, engaged in the manufacturing and sale of electrical overhead conductors, high-tension (HT) insulators, and specialized epoxy resins are in focus following their fixing a record date for its 1:5 Stock Split, results, and Production Capacity Enhancement.

The Board of Directors of the Company, in its meeting held on 13th February 2026, has approved the sub-division of each existing equity share of Rs. 10/- into 5 equity shares of Rs. 2/- each (1:5 ratio) and Friday, 27th February 2026, has been fixed as the “Record Date” to determine the members eligible for this share split.

Q3 Performance

Income from operations rose 40 percent YoY from Rs. 68 crores in Q3FY25 to Rs. 95 crores in Q3FY26, and rose 36 percent QoQ from Rs. 70 crores in Q2FY26. Net profit increased 3160.8 percent YoY to Rs. 15 crores from Rs. 0.46 crores, and QoQ from a loss of Rs. 43, it turned to profit. Earnings per share (EPS) for the quarter stood at Rs. 101.81.

The board has approved the change of the Company’s name from Hindusthan Urban Infrastructure Limited to Hindusthan Insulators & Industries Limited, effective 13th February, 2026.

Production Capacity Enhancement: Hindusthan Urban Infrastructure Limited has approved an expansion of its Mandideep plant’s production capacity. The kiln loading will increase from 20,640 MT to 21,780 MT, and kiln dispatchable capacity from 16,500 MT to 19,500 MT, with full utilization currently at 100%. The additional capacity is expected to be operational by December 2026.

The expansion will require an investment of Rs. 210.32 crores, funded internally through fixed deposits and mutual fund investments. This enhancement is expected to generate a monthly benefit of approximately Rs. 4.05 crores.

Hindusthan Urban Infrastructure Ltd (HUIL), incorporated on October 17, 1959, is a New Delhi-based company primarily engaged in manufacturing electrical conductors, high-tension (HT) insulators, and epoxy resins. It provides critical components for power transmission and distribution, with manufacturing facilities in Gwalior, Guwahati, Khurda, and Mandideep. 

The company operates across four key business segments: Electrical Conductors, High Tension Insulators, Real Estate (property rental), and Specialty Chemicals. Its product portfolio includes AAC, ACSR, and AAAC conductors, HTLS (High-Temperature Low Sag) conductors, porcelain insulators, and epoxy resins manufactured through its subsidiary, Hindusthan Speciality Chemicals Limited.

It has a strong market presence both domestically and internationally, exporting products to countries such as Italy, Turkey, Russia, Egypt, and South Africa, reflecting a diversified and global customer base.

The company maintains a low debt-to-equity ratio of 0.23, indicating minimal reliance on debt financing. Its stock is trading at a discount, at 0.70 times its book value, suggesting potential undervaluation. Operational efficiency has improved, as reflected in the reduction of debtor days from 93.9 to 73.4, signaling faster collection of receivables.

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