Indian benchmark indices opened higher on Tuesday tracking strong global cues and amid falling crude oil prices. The NSE Nifty50 climbed more than 150 points to trade above 17,450 levels while the BSE Sensex surged more than 500 points to trade at 58,930 levels.
Gokul Agro Resources Limited is a company that manufactures a variety of edible oils, non-edible oils and meals. Some of its famous brands are Vitalife, Mahek, Zaika, Rechfield and Puffpride.
The company’s shares witnessed a 19.98% spike during Tuesday’s early trades and have hit the upper circuit. The scrip had only buyers after 8,09,099 shares changed hands on the National Stock Exchange (NSE).
The shares reached a 52-week high of ₹137.15 on the NSE and are currently locked at ₹ 96.40 apiece. Therefore they are 42% away from their 52-week high. Further, they hit a 52-week low of ₹ 42.40 and are 56.01% away from their 52-week low.
The company’s shares climbed 122.63% on a year-to-date basis. Its share price increased from ₹ 43.30 levels to the current level. Therefore, if an investor would have invested ₹ 1 lakh in the shares of the company a year ago, the value of their holdings would have been ₹ 2.22 lakhs today. Further, the company has given multibagger returns of 269.35% in the past five years.
Gokul Agro Resources Limited is a small-cap company with a market capitalization of ₹1150 crores. It has an excellent return on equity of 30.14% and is trading at a price-to-equity (PE) ratio of 7.56 which is significantly lower than the industry PE of 19.90. Therefore, the stock might be undervalued and its price might increase in the future. Further, it has an ideal debt-to-equity ratio of 0.65.
Written by Simran Bafna
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