Shares of this small-cap defence stock jumped approximately 14 percent in Wednesday’s trading session after the company’s Promoter Group Entity is likely to sell a stake in the company. In the past six months, the company’s stock gained nearly 20 percent for its stakeholders.
With a market capitalization of Rs 2,520.28 crores, the stocks of GOCL Corporation Limited started their trading session on Wednesday at Rs 465.65 and currently trade at Rs 506.40, gaining approximately 14 percent compared to the previous closing levels of Rs 445.95 apiece.
Such bullish stock price movements were observed today amid multiple reports intimating that Hinduja Capital, Mauritius, Promoter Group Entity, is likely to reduce its shareholding by around 1 percent, i.e., from 73.83 percent to 72.83 percent.
During the recent financial quarters, the company’s basic business indicators such as the operating revenues as well as after-tax profits showed stable performance with the former increasing marginally from Rs 163 crores during Q2FY24 to Rs 167 crores during Q3FY24 and the latter, keeping the timeframe the same, stayed uniform at levels of Rs 15 crores.
Coming onto the ratio analysis for the recent financial years, the return on equity (RoE) stayed constant at levels of 15 percent in FY21-22 as well as FY22-23, and the return on capital employed (RoCE), keeping the timeframe the same, rose drastically from 4.35 percent to 17.38 percent.
In addition, the company’s debt-to-equity ratio, one of the most tracked leverage ratios, reduced from 1.38 times during FY21-22 to 1.25 times during FY22-23.
GOCL Corporation Limited is an investment holding company operating in the ‘Energetics’ and ‘Explosives & Realty’ segments. Deriving a majority of revenue from India, the majority of the company’s revenue is generated from the explosives segment engaged in the manufacturing of cartridge explosives, bulk explosives for mining, manufacturing of special precision detonators, etc.
Written by Amit Madnani
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