The shares of this microcap company clocked a 5 percent upper circuit in Monday’s trading session after reporting an increase in net sales by 158 percent YoY.
Price Movement:
With a market capitalization of Rs. 105 crores, the shares of GSM Foils Ltd started Monday’s trading session on a higher note at Rs. 82.40, clocking a 5 percent upper circuit compared to its previous close of Rs. 78.50 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced the sales performance for September 2024.
The company reported net sales of Rs.11,35,75,980 crores, a significant increase compared to the same month in the previous year, where net sales were Rs. 4,40,11,727 crores, marking a 158.05 percent YoY growth.
For the period from April to September 2024, the company reported total net sales of Rs. 52,17,19,304 crores demonstrating robust performance during the first half of the fiscal year.
Financials:
Looking at the company’s financial performance, the revenue increased by 50 percent from Rs. 27.18 crores during FY21-22 to Rs. 40.83 crores in FY22-23. On the other hand, the net profits jumped by around 10 percent from Rs. 1.25 crores to Rs. 1.37 crores during the same period.
Manufacturing facility:
GSM Foils Ltd operates a modern manufacturing facility in Vasai, Maharashtra, covering approximately 15,000 square feet. This facility specializes in producing blister foils and aluminium pharma foils (strip foils) essential for protecting pharmaceuticals like tablets and capsules from environmental factors.
Products and Services:
GSM Foils Ltd manufactures a diverse range of products essential for pharmaceutical packaging, primarily focusing on Blister Foils and Aluminum Pharma Foils (also known as strip foils).
These products are crucial for packaging capsules and tablets, protecting environmental factors such as moisture and oxygen.
The company offers various specifications, with foils available in thicknesses ranging from 0.020 to 0.040 microns and types including plain, printed, coated, and poly-laminated options.
Future Outlook:
Currently, GSM Foils has a customer base in 13 states and one union territory. The company aims to broaden its footprint by penetrating additional regions, which will allow it to tap into new customer bases and enhance its market share.
Furthermore, the company is exploring opportunities for strategic acquisitions or mergers, particularly focusing on acquiring a Low-Density Polyethylene (LDPE) plant. This move is aimed at enhancing its foil manufacturing capabilities.
Moreover, the company is planning to develop a new line of food foils, which aims to enhance product variety and meet diverse consumer needs.
By introducing food foils, GSM Foils intends to tap into the growing demand for flexible packaging solutions in the food industry. This diversification will help mitigate risks associated with reliance on the pharmaceutical sector alone.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
