Shares of this small-cap stock associated with the ‘Edible Oil’ industry jumped approximately 6 percent in Thursday’s trading session after the company successfully bagged an order worth Rs 50 crores for grid connectivity and evacuation of a Solar Power Project based in Gujarat. In the past month, the company’s stock gained nearly 20 percent for its holders.
With a market capitalization of Rs 1,991.10 crores, the stocks of Gokul Agro Resources Limited started their trading session on Thursday at Rs 130.05 and currently trades at Rs 134.95, gaining around 6 percent compared to the previous closing level of Rs 127.90 apiece.
Such bullish movements in the company’s share price were witnessed after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE) dated 1st May 2024, intimated the receipt of an approval letter from “Gujarat Energy Transmission Corporation Limited” (GETCO), owned by the Government of Gujarat.
The approval pertains to the grid connectivity as well as the evacuation of a 10 MW Solar Power Project at the 66KV Gorad substation of GETCO located at Dalpura, Gujarat for captive use. The total consideration of the project is estimated to be Rs 50 crores and the same, considering the terms of the approval letter, is scheduled to be completed in the FY24-25.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, showed some dip in numbers with the former reducing from Rs 4,119 crores during Q2FY24 to Rs 3,346 crores during Q3FY24, and the latter, keeping the timeframe the same, staying uniform at levels of Rs 34 crores.
In addition to the above, the company has been successful in maintaining healthy return ratios during FY23 with the return on equity (RoE) reported at 20.35 percent and the return on capital employed (RoCE) at 28.18 percent.
Founded in 2014, Gokul Agro Resources Limited is engaged in the manufacturing and trading of edible as well as non-edible oil, meals, and other agricultural products. Some of the company’s associates are also engaged in the power transmission segment.
The company offers agro-based commodities under various product groups, some of which include soybean, palmolive, sunflower oil, vanaspati, oilseeds, and others.
Written by Amit Madnani
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