The shares of the syringe molding manufacturer hit 5 percent upper circuit of Rs 29.32 apiece after the company acquired 65 acres of land to build a Hybrid Power Plant worth Rs 5.72 Bn.
With a market capitalization of Rs 162.88 crore, the shares of Gujarat Toolroom Ltd were trading at Rs 29.31 per share, increasing around 4.94 percent as compared to the previous closing of Rs 27.93 apiece.
According to the exchange filing, Gujarat Toolroom Ltd has successfully obtained 65 acres of land on a long-term lease in Gujarat for the construction of a cutting-edge hybrid power plant. Approximately 60 acres of the purchased property will be used to install solar panels. Each acre is expected to generate one megawatt of electricity each hour.
Moreover, The remaining 5 acres will be designated for essential power management infrastructure, including transformer stations and high-voltage line terminals.
Furthermore, with an estimated project cost ranging from Rs 5.72 to 6.5 Billion and a projected timeline of 3-5 years for completion before commercialization, GTL is poised to embark on a transformative journey toward a greener future.
Additionally, the land layout plan includes provisions for the placement of 15 on-shore wind turbines, strategically positioned across every 4 acres of land. Each turbine is expected to produce 2.5 Megawatts of power per hour and Upon completion, the Hybrid Power Plant aims to contribute 97.5 Megawatts of clean and sustainable electricity to the grid.
Looking into Gujarat Toolroom’s performance, revenue increased by13000 percent from Rs 1 crore in Q3 FY23 to Rs 131 crore in Q3 FY24. During the same period, net profit increased by 1300 percent, from Rs 1 crore to Rs 14 crore.
The company’s profitability measures show an incline in return on equity (RoE) from (151.70) percent in FY 21-22 to 21.83 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from (150.56) percent to 26.56 percent. In contrast, the net profit margin (NPM) was 57.60 percent in fiscal year 22-23.
Gujarat Toolroom Ltd. makes syringes and molds. The company manufactures molds for medical disposables, pharmaceuticals, food and beverage packaging, caps and closures, and writing tools.
Written by:- Abhishek Singh
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