Shares of this mining company clocked 5 percent upper circuit on Tuesday’s trading session after the company announced the acquisition of mines in Zambia. In 3 months, the shares have delivered a multibagger return of 128 percent to its shareholders.
With a market capitalization of Rs. 287 crores, the shares of Gujarat Toolroom Ltd started Tuesday’s trading session on a higher note at Rs. 51.64 compared to its previous close of Rs. 49.19. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 51.64 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had successfully concluded the acquisition of 6 hectares of mines in Zambia, and these newly acquired mines boast a rich reservoir of valuable resources, including copper, cobalt, gold, nickel, manganese, emeralds, beryllium, various gemstones, sulphur, zine, coal, iron ore, steel, limestone, uranium, and other platinum-group metals.
Furthermore, the company mentioned that each hectare of these mines is equipped with state-of-the-art Japanese technology and yields an estimated annual revenue ranging from 15 to 20 million dollars.
With a cumulative expanse of 6 hectares, the company anticipates a minimum annual revenue of Rs. 700 crores upon the operational commencement of these mines in the upcoming quarter.
Looking at the company’s financial statement, the revenue magnified from Rs. 1.10 crores in the June quarter to Rs. 156.68 crores during the September quarter. In addition, the net profits increased from Rs. 78 lakhs to Rs. 2.40 crores during the same timeframe.
On September 2023, the company completed an import transaction with Imperial Business Trading Ltd, A Grade company based in Hong Kong. This included the procurement of conductive ink and other related materials for Rs. 1.5 Billion.
Headquartered in Ahmedabad, Gujarat Toolroom was incorporated in 1983. The company is in the business of development and operation of mines and minerals and other allied activities.
Written By Vaibhav Patil
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