Shares of this microcap company clocked a 5 percent upper circuit on Tuesday’s trading session after the company announced a 100% dividend to its shareholders.
On Tuesday’s trade, Gujarat Toolroom Ltd. shares hit a 5 percent upper circuit to ₹45.3 a share on the Bombay Stock Exchange, and the company has a market capitalization of ₹252 crore.
According to the company’s filing on April 8, 2024, the Board of Directors approved an interim dividend of 100% at ₹1 per equity share with a face value of ₹1 each for the fiscal year 2024-25. The company has set a record date on April 20, 2024.
Gujarat Toolroom has recently obtained significant contracts to supply construction materials to renowned firms including Reliance Industries Limited, Adani Gas & Power, Gujarat Gas, and Indian Oil.
Gujarat ToolRoom Ltd is in the business of the development and operation of mines and minerals and other allied activities.
Gujarat Toolroom Ltd. also manufactures syringe molding and manufacturing of molds. The Company specializes in molds for medical disposables, pharmaceutical, food, and beverage packaging, caps, and closures, and writing instruments.
Gujarat Toolroom Ltd’s stock has experienced remarkable growth, with a 38% surge in the past six months and a staggering 360% increase over the past year, exemplifying its multibagger potential. For instance, a ₹1 lakh investment a year ago would now be valued at ₹4.60 lakh.
In the third quarter of FY23, revenues escalated to ₹131 crore, marking a phenomenal 13000% surge from ₹1 crore. Concurrently, net profit soared to ₹14 crore, reflecting an impressive 1300% improvement from the previous fiscal year’s same quarter.
As of the December quarter shareholding pattern, the company’s promoters hold a 0.37% stake, while retail investors hold a dominant 99.35% stake in the company.
Written by Omkar Chitnis
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