Synopsis:
GOCL Corporation Ltd has approved in principle the acquisition of Hinduja National Power Corporation Ltd’s 1040 MW thermal power plant near Visakhapatnam.
The shares of the Small-Cap company, specializing in the business of energetics, mining, and infrastructure services and realty, jumped by upto 9 percent following the acquisition approval of Hinduja National Power’s thermal power operations near Visakhapatnam.
With a market capitalization of Rs. 1,828.49 Crores on Monday, the shares of GOCL Corporation Ltd rose by 9.3 percent after making a high of Rs. 389.25 compared to its previous closing price of Rs. 356.00.
GOCL Corporation Ltd, engaged in the business of energetics, mining, infrastructure services, and realty, has announced that it is in the final stages of monetizing its land at Kukatpally, Hyderabad, and divesting its major subsidiary. With surplus liquidity available, the company is looking to enter a new operating business and, after evaluating various options, has identified the energy sector as the most suitable.
Accordingly, the Board has approved, in principle, the acquisition of thermal power operations of Hinduja National Power Corporation Ltd (HNPCL), subject to due diligence. HNPCL operates a 1040 MW thermal power plant near Visakhapatnam and reported a revenue of Rs. 3,573.36 crore and net profit of Rs. 996.97 crore in FY24, with a net worth of Rs. 3,935.42 crore. Further updates will be shared in due course.
Also read: IT stock hits 5% lower circuit after cricketer Rohit Sharma offloads his stake in the Co.
Financials & Others
The company’s revenue declined by 25 percent from Rs. 4 crore to Rs. 3 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 36 crore to Rs. 1,223 crore during the same period.
The company maintains a healthy dividend payout of 32 percent. Its P/E ratio of 19.6 is lower than the industry average of 21.8, indicating potential value compared to peers.
GOCL Corporation Ltd is a prominent Indian company with a rich legacy dating back to 1961, when it began as Indian Detonators Limited in Hyderabad. Over the decades, it has evolved through several name changes and strategic transformations, now operating as a diversified player under the global Hinduja Group.
The company has built a multi-location, multi-division business catering primarily to commercial explosives, detonators, mining chemicals, and accessories, while expanding into real estate and high-technology areas such as electronics manufacturing services, metal cladding, and special projects for defense and space.
The core of GOCL’s business remains its energetic materials and explosives division, which is among India’s largest and serves a network of markets in numerous countries across Southeast Asia, Africa, the Gulf, and Europe. Its manufacturing operations span several plants and divisions, ensuring a robust supply chain and innovation pipeline.
GOCL Corporation Ltd’s key clients include Tata Steel, Bharat Dynamics Ltd, Hindustan Aeronautics Limited (HAL), Zuari Cement, Silicon Labs, Regal Rexnord, and Bharat Forge, showcasing its strong presence in the defense, steel, aerospace, cement, electronics, and manufacturing sectors.
Written by Sridhar J
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