Shares of this microcap company clocked 5 percent upper circuit after executing an order worth Rs. 550 million. The shares have delivered a multibagger return of 128 percent to its shareholders in three months.
With a market capitalization of Rs. 314 crores, the shares of Gujarat Toolroom Ltd started Friday’s trading session on a higher note at Rs. 58 compared to its previous close of Rs. 55.48. During the trading session, the shares clocked 5 percent upper circuit at Rs. 58.25 apiece.
Such a bullish movement was observed after the company in an exchange filing announced they had successfully executed an order valued at Rs. 550 million, in which they achieved a bottom line of Rs. 55 million.
Furthermore, the company expects a significant turn-around in their financials, particularly with the imminent commencement of operations at Zambia Mines within the next 6-8 months.
As of January 2024, the company’s order book stands at over Rs. 3 billion, in which they are anticipating a minimum bottom line of 9 to 10 percent. The order book comprises diverse import-export orders from both domestic and international clients.
Recently, the company had successfully concluded the acquisition of 6 hectares of mines in Zambia. With a cumulative expanse of these 6 hectares, the company anticipates a minimum annual revenue of Rs. 700 crores upon the operational commencement of these mines in the upcoming quarter.
Looking at the company’s financial statement, the revenue magnified from Rs. 1.10 crores in the June quarter to Rs. 156.68 crores during the September quarter. In addition, the net profits increased from Rs. 78 lakhs to Rs. 2.40 crores during the same timeframe.
On September 2023, Gujarat Toolroom completed an import transaction with Imperial Business Trading Ltd, A Grade company based in Hong Kong. This included the procurement of conductive ink and other related materials for Rs. 1.5 Billion.
Headquartered in Ahmedabad, Gujarat Toolroom was incorporated in 1983. The company is in the business of development and operation of mines and minerals and other allied activities.
Written By Vaibhav Patil
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