This report is the updated version of the report published on January 02, 2026, 09:38 AM GMT. 

Hardide PLC (LSE: HDD)

Hardide PLC (LSE: HDD) is an FTSE AIM All-Share listed company that designs, produces, and applies advanced tungsten-carbide coating technologies for a broad range of engineered components. Its coatings enhance the lifespan of metal parts operating in abrasive, erosive, corrosive and chemically aggressive environments.

This Report covers the Key Recommendation Rationale, Key Risks, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 18.98

• Execution Risk to Medium-Term Growth Targets: The ambition to double revenues to £10m depends on converting early-stage aerospace and energy development work into sustained, high-volume production. These contracts remain subject to timing, customer capex cycles, and qualification risk, creating downside risk if execution slips.
• RSI Signals Overbought Conditions: RSI has moved above 70, indicating overbought conditions following the recent rally. Historically, RSI levels above this threshold suggest short-term exhaustion of buying momentum and increase the probability of a pullback or consolidation.
• Balance Sheet and Small-Cap Risk Exposure: Although net debt has reduced, leverage remains meaningful relative to earnings, and HDD’s AIM listing implies low liquidity and higher volatility. In uncertain macro conditions, this increases the risk of disproportionate share price downside, reinforcing a sell recommendation. 

Key Risks - Investment Risks, Increase in interest rates, Currency Volatility, Etc.

Share Price Chart  

Price Chart (as of January 02, 2026). Source: Refinitiv

Valuation Methodology: Price/ Earnings Approach

Conclusion

HDD is expected to trade at a discount, considering execution Risk, RSI signals overbought conditions. For conducting the valuation the industry average has been considered.

Given its current trading levels, balance sheet and small-cap risk exposure, recent rally in the share price, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 18.98 as of 02 January 2026 at 09:18 AM GMT.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 02 January 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and/or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.