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A manufacturer of detonators, explosives, and related equipment, saw a 20 percent rise in its shares to ₹453.35 on Thursday trade after signing an MoU with Squarespace Builders for land worth ₹3,402 crore 

GOCL Corporation Ltd is a small-cap stock with a market valuation of ₹2,122 crore On Thursday. At 12:05 p.m., Its shares were trading at ₹444 a share, up ₹66.55 or 17.62 percent on the National Stock Exchange. 

GOCL Corporation Limited has signed a Memorandum of Understanding (MoU) with Squarespace Builders Private Limited for the monetization of approximately 264.50 acres of land situated at Kukatpally, Hyderabad. Within this agreement, 32 acres of land will be developed jointly under a Joint Development Agreement (JDA). 

The monetization will take place over 18 months in tranches, in stages, depending on meeting certain conditions. Specifically, out of the total land, 12.50 acres will be immediately sold as part of the JDA with Hinduja Estates Private Limited, now known as Hinduja Healthcare Limited, for a total consideration of ₹ 3,402 crores. 

As per the company’s filing. Upon signing the MoU, GOCL will receive ₹ 520 crores, with ₹160 crores being the payment for the sale of the 12.50 acres, and the rest will be kept by the company as an advance for future transactions. 

GOCL Corporation Ltd is a diversified company engaged in various business segments. The company operates in energetics, mining, infrastructure services, and realty businesses in India and internationally. Specifically, GOCL Corporation Ltd manufactures detonators, explosives, metal cladding products, and electronic components for various industries. 

Additionally, the company is involved in the development of commercial mixed-use properties, including SEZ and commercial office space. 

GOCL Corporation Limited, a subsidiary of the Hinduja Group, specializes in producing and selling packaged and bulk explosives, along with blast initiating devices. Its manufacturing capabilities include an annual capacity of 270,000 metric tons for explosives and 192 million units for initiating devices.

The company distributes its CE Certified products to 21 nations, spanning from the Philippines to regions across South East Asia, North Africa, the Gulf, Middle East, and Southern Europe, encompassing countries like Greece and Turkey. 

GOCL Corporation shares have gained 5 percent in the last six months and 53 percent in the last 12 months. 

As per the current shareholding pattern, the promoters hold 73.83 percent of the company,Domestic institutional investors own 2.69 percent and retail investors own 23.69 percent stake. 

The company’s annual revenue dropped by 33 percent from ₹248 crore in Q3FY23 to ₹167 crore in Q3FY24, while its net profit also saw a significant decline of 53 percent, plummeting from ₹32 crore to ₹15 crore during the same timeframe. 

Written by Omkar Chitnis 

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