The share of this microcap company hit a 2 percent upper circuit after receiving a significant order valued at USD 50 million. In one year the stock has delivered a multibagger return of 324 percent returns to its investors.
For example, if someone had invested Rs. 1 lakhs a year ago, then, the worth of those shares would be Rs. 4.24 lakhs now.
With a market capitalization of Rs. 200 crores, the shares of Gujarat Toolroom Ltd, engaged in mining business started today’s trading session on a positive note. Within a few minutes of the opening bell, the stock hit a 2 percent upper circuit at Rs. 36.85 which is also recorded as a company’s fresh 52-week high.
Such a bullish sentiment was observed after the company in an exchange filing mentioned that it had received a significant order valued at USD 50 million for diamonds.
The diamonds procured from the company will be utilized in the manufacturing of exquisite ornaments by the customer. Furthermore, the company mentioned that the customer has already transmitted their signed and sealed order to them, underscoring their commitment to this partnership, and will make an initial advance payment to initiate the order.
Looking at the financials of the company, the revenue declined by 32 percent from Rs. 1.62 crores during Q4 FY 23 to Rs. 1.1 crores in Q1 FY24. On a contrasting note, the net profit marginally increased by 5 percent from Rs. 73 lakhs to Rs. 77 lakhs during the same timeframe.
Coming onto the Important financial ratios, the return on equity (RoE) shifted from -86.27 percent during FY21-22 to 42.96 percent in FY22-23. In addition to this, the return on capital employed increased from -37.66 percent to 43.61 percent during the same period.
According to the latest shareholding pattern, Public or Retail Investors have a majority stake of 99.36 percent in the company and the remaining 0.37 percent is with the Promoters.
Written By Vaibhav Patil
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