This Smallcap stock engaged in the business of manufacturing and selling engineering products such as sheets, engineering structures, pipes, forgings, fabricated structures, and automobile tubes in focus followed after the company announced a new facility for Defence & Aerospace with an approx Investment of Rs. 216.50 crore.
Price Action
With a market capitalization of Rs. 3,163.69 Crores, the shares of Goodluck India Limited touched a day’s high of Rs. 1,008.85 per equity share, up 1.78 percent. The stock reiterated from the day’s high and was trading at Rs. 963 which is 2.84 percent lower from its previous day’s close price of Rs. 991.15. The stock delivered a negative return of 2.82 percent and underperformed the Nifty Index in the past year.
What Happened
The company’s stock was in focus after they announced a new facility through their subsidiary in Sikandarabad, Bulandshahr, Uttar Pradesh. They plan to operate the plant to cater to the Defence and Aerospace industries. The new facility would carry out operations relating to forging, treatment, machining, and coating of steel, special steel, stainless, alloys, or any other metal through the way of open forging, robotic forging, die forging, or any other method. The investment for the new facility would cost around Rs. 216.50 crore, funded by equity and debt. The plant will have a capacity to produce approx 11,000 MTPA. The company announced that the erection of the machineries has been started and expects it to start trial production by Q1FY26.
About the Company
Goodluck India Limited was established in 1986. It is a leading manufacturer of industrial steel products, specializing in precision forgings and metal solutions for sectors like automotive, infrastructure, and aerospace. The company operates six manufacturing units with a total capacity of 4,12,000 MTPA and serves over 600 clients across more than 100 countries with an approximately 30 percent of its revenue from exports. Goodluck India’s business model focuses on high-margin and value-added products. They customize engineering solutions and focus on operational efficiency.
Financials & Ratios
Its Revenue from operations improved by 10.15 percent year on year from Rs. 886 Crores in Q2FY24 to Rs. 976 Crores in Q2FY25, accompanied by a profit of Rs. 35 Crores to a profit of Rs. 47 Crores.
In terms of Return ratios, the return on equity (RoE) stood at 15.21 percent and a return on capital employed (RoCE) of 17.54 percent in FY24. They have a debt-to-equity ratio of 0.7 as of FY24.
Shareholding Pattern
As of September 2024, the promoters were holding a share of 55.78 percent, Foreign Institutional Investors (FII) were holding around 2.62 percent, Domestic Institutional Investors (DII) were holding around 1.82 percent, and the remaining 39.78 percent held by Public Investors.
Written by Santhosh S
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