Hilltone Software & Gases Ltd Draws Income Tax Attention Amidst Steady Growth

In a significant development, Income Tax authorities have initiated a search action against Hilltone Software & Gases Ltd, a micro-cap company based in Mehsana, Gujarat. This move has placed the company under the spotlight, raising questions about its financial practices and future business operations.

Key Highlights

Hilltone Software & Gases Ltd has shown steady financial growth, with a total revenue of approximately ₹6.73 crore in FY 2024 and a net profit of ₹0.51 crore for the year ended March 2024.

The company remains debt-free, with a low debt-to-equity ratio of 0.06, and has maintained positive returns on equity and assets.

Despite repeated profits, the company has not paid dividends, and promoter holding remains low at around 12%.

The current market capitalization stands at approximately ₹40 crore, with the stock trading between ₹19.21 and ₹60.00 over the past year.

Leadership includes Chairman Parulben Niketkumar Shah and Managing Director Niketbhai Mahendrabhai Shah, with the registered office located in Mehsana, Gujarat.

The search action by Income Tax officers signals increased regulatory scrutiny, which could impact investor sentiment and operational transparency in the near term.

While the company’s financials have reflected modest profitability and efficient capital management, the initiation of a tax search introduces an element of uncertainty. Investors and stakeholders are advised to monitor official updates and disclosures from the company regarding the ongoing investigation and its potential implications.

Sources: Screener, BlinkX, Business Standard, Value Research Online