A leading Indian precision tooling manufacturer, renowned for its high-quality machined components and comprehensive industrial solutions, is making waves in international markets. The company announces a strategic expansion into the luxury goods sector through a new fully-owned subsidiary in Dubai’s Airport Freezone, focusing on trading jewelry, diamonds, and precious stones.
Share Price Movement
The share price of Gujarat Toolroom Limited hit an upper circuit of 5 percent to Rs. 15.37 per share on Friday, an increase from its previous close of Rs. 14.64 per share. The market capitalisation now stands at approximately Rs. 356 crore as of January 17, 2025.
What driving price?
Gujarat Toolroom Limited has expanded its business internationally by establishing a subsidiary, GTL DIAM Trading FZCO, in Dubai Airport Freezone. This subsidiary will focus on trading jewelry, diamonds, precious stones, and pearls. Gujarat Toolroom Limited owns 100% of GTL DIAM Trading FZCO, with a total investment of AED 100,000.
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Financial Highlights
The company reported a significant growth in FY2024, with revenue increasing to Rs. 991 crore from Rs. 555 crore in FY2023, reflecting a growth rate of 78%. Profit surged from Rs. 1 crore in FY2023 to Rs. 73 crore in FY2024, marking a remarkable growth of 7,200%.
Competitors
Competitors of Gujarat Toolroom include Craftsman Automation, Sunita Tools, and Bhavya Machine. Gujarat Toolroom is currently trading at a P/E of 3.03, which is lower than the industry P/E of 40.
Market Outlook
The gems and jewellery industry in India is set for growth, driven by rising global demand and exports of US $13.40 billion during April-September 2024. Increasing investments, such as Malabar Group’s US $120 million commitment, strengthen the sector.
Policy support, including 100% FDI and simplified export-import processes, fosters growth. With attractive opportunities, including rising FDI inflows and growing consumption, the sector is set to expand significantly, supported by India’s leadership in diamond and jewellery exports.
Written by Fazal Ul Vahab C H
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