On Thursday, the shares of leading manufacturers of a wide range of Engineering Structure companies soared 14 percent to an all-time high of Rs 715 per share after the company announced plans to expand its operations in the Defence and Aerospace wing.
At 10:55 a.m., Goodluck India Ltd shares were trading at Rs 701.20 a share, up Rs 74.05 or 11.83 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of Rs 1,903 crore.
According to the company’s exchange filing, Goodluck India plans to expand its Defence and Aerospace operations through a wholly-owned subsidiary, Goodluck Defence and Aerospace Private Limited. For the production of forged machined parts for the defense and aerospace industries.
The company’s Board of Directors has authorized a preferential issuance of Rs. 96 crores for the expansion project. Comprising the sale of 500,000 convertible warrants to Promoter Group (FV. Rs. 2, with an exercise price of Rs. 600 each) and 11,00,000 equity shares to important investors (FV. Rs. 2, with an exercise price of Rs. 600 each). The Wholly owned subsidiary would receive a Rs. 40 crore investment.
The company’s share price has climbed from Rs 35.25 to current levels during the last three years, yielding multibagger returns of 1,900 percent. As a result, if an investor purchased 1 lakh company shares in the previous three years, their investment is now worth 20 lakhs!
Goodluck India’s revenue has increased by 4 percent yearly, from Rs 822 crore in Q1FY23 to Rs 858 crore in Q1FY24. In the same time frame, the company’s net profit has jumped by 33 percent, from Rs 21 crore to Rs 28 crore.
In the recent financial year, the company reported a net profit margin of 2.85 percent and an operating margin of 6.07 percent.
According to the recent shareholding pattern, the company promoters hold 58.73 percent of the company, while retail investors hold a 41.22 percent stake.
Goodluck India Ltd is a specialized engineered steel products manufacturer catering to automobile, aerospace, oil & gas, T&D, defense, solar, and infrastructure space.
Written by Omkar Chitnis
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