Hardide (LSE:HDD) shows what’s possible when things go right with penny stocks. So far in 2026, this under-the-radar small-cap has surged by a mind-boggling 455%.
To put that number into context, the FTSE 100 and FTSE 250 are up 7.9% and 6.5% year to date respectively. The one-year return of Hardide is even more astounding — up more than 1,150%!
Yet at 98p, the firm still has a small £80m market-cap. This makes it a mere tiddler in the wider UK stock market sea. So might there be a chance for investors to still consider boarding this rocket ship? Let’s take a closer look.
What does Hardide do?
I must confess, Hardide’s one that’s flown completely under my radar. It manufactures and applies patented tungsten carbide metal coatings using a specialised process.
My first thought here is, why send components to Hardide and not some other coatings specialist? Well, handily, the company answers this on its website.
Hardide’s innovative coatings deliver solutions where conventional coatings fall short. The range of CVD coatings (Hardide-T, A, W and D) outperform traditional technologies like HVOF, PVD and Hard Chrome plating in head-to-head industry standard trials across wear, erosion and corrosion resistance, often by a factor of 6x, 12x and even 24x.
Hardide
Looking beyond the alphabet soup, the firm’s essentially saying its coating technology lasts longer than many traditional surface treatments. Strong financial performance suggests so, driven by major commercial contract wins and operational leverage.
Two magic words
Earlier this week, the company announced its fiscal 2026 performance will be “materially ahead” of previous expectations. When a company (especially a small-cap) drops those two magic words, shareholders are normally in for a treat.
Previous expectations for the 12 months to 30 September were for revenue of £13.4m and EBITDA of £4.3m. Looking ahead, management’s now very confident in doubling revenue over the next two to three years — from 2026’s higher base!
A large chunk of growth is being driven by a major energy sector customer in North America. While this presents a level of customer concentration risk, the firm’s confident it can continue diversifying its customer base, including expansion into the booming semiconductor space. It’s also expanding into the Middle East.
To capitalise on these growth opportunities, Hardide’s investing £4.5m in three new coating reactors and associated infrastructure.
Is the penny stock worth mulling?
Turning to valuation, this still looks reasonable following the strong update. Using broker Cavendish’s upgraded forecast of earnings per share of 7.7p for FY27 (starting October), the forward-looking P/E ratio is just under 13.
For a company expected to double revenue by 2028/29, that’s not very expensive.
Weighing things up then, it doesn’t appear too late to consider this surging growth stock. It’s not one I’d load up on, as there’s customer concentration risk, as mentioned. And there’s no dividend.
And though Hardide has locked in roughly 50% of its FY2027 gas needs, it’s still exposed to volatile chemical and commodity prices.
However, the company has incredible momentum right now, with growth opportunities in the Middle East energy sector and semiconductors, and the valuation isn’t bonkers. So it’s still worth digging into, in my opinion.
Should you invest £5,000 in Hardide right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Hardide made the list?
Ben McPoland has no position in any of the companies mentioned.
