Penny Stock Upside

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Penny Stock Upside

This Penny Stock Has Gained 2198% Upside

Hardide Coatings (HDD) is a great example of spectacular returns you can expect from the right penny stocks. The Hardide stock reached its lowest point in 2024. At that time, it was trading at 4p. Since then, Hardide's share price has gone up by more than 2198%.

Analysts think Hardide Coatings' stock price still has enough fuel to go even higher. Is it true, or should you avoid buying Hardide Coatings at current prices?Let's take a closer look at Hardide Coatings.

Hardide Coatings Revenue Growth Is Strong

Hardide makes advanced tungsten carbide surface coatings. These coatings are made using a special CVD process. The application of the coating on metal prevents corrosion and wear and tear. It is designed to even withstand severe environments.

Hardide has its manufacturing facilities in the USA and the UK. What really makes this coating so special is that it is 14 times more resistant to abrasion compared to hard chrome.

Last year's revenue of Hardide increased by 27% and reached 6 million. This was mainly due to the company winning new contracts in the energy and aerospace sector. This was also the first time in several years that earnings have turned positive.

This was the catalyst which sent the share price to record highs. Looking ahead, analysts think the revenue for this year will grow by 124% y/y. The forecasted net profit for this year is 4.5 million.

According to Hardide, it can grow its revenue to 20 million in the next 2-3 years. The company is working on developing 3 new coatings. This will help the company to improve its revenue.

Now, let's talk about the potential risks with Hardide. The first one is customer concentration. Any disruption from the customers could dim the growth outlook.

Another big risk for Hardide is raw material inflation. The cost of tungsten gas can rise, and it would seriously impact the company's bottom line. However, the company claims it has already secured 50% of its requirements for the next financial year.

If we look at the forecasts for financial year 2027, the forward P/E of Hardide is near 12.9. This alone tells us that Hardide stock is still cheap.

So, if you are looking for a high-growth penny stock, you can definitely consider buying Hardide shares. Analysts think the Hardide share price can double in the next 3 years.

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