Shares of this microcap company jumped 2 percent in Wednesday’s trading session after entering into a distributorship agreement with Omni Trade International. The shares have delivered a multibagger return of 105 percent in one year to its shareholders.
With a market capitalization of Rs. 367 crores, the shares of GP Petroleums Ltd started Wednesday’s trading session on a flatter note at Rs. 70.50. During the trading session, the shares hit a high of Rs. 73.40, gaining around 2 percent and closed the day at Rs. 71.80 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had entered into a distributorship agreement with Omni Trade International, Nepal.
This agreement facilitates the export, sale, supply, or distribution of automotive products under the ‘REPSOL’ brand. These products are manufactured and marketed by REPSOL LUBRICANTES Y ESPECIALIDADES S.A., Spain. Essentially, it allows the authorized distribution of REPSOL automotive products in Nepal’s market.
Furthermore, Through this collaborative venture, the company anticipates enhancing its market foothold while facilitating the seamless distribution of ‘REPSOL products to a wider consumer base and broader market landscape.
Coming onto the company’s financial statements, the revenue decreased by 5 percent from Rs. 161.98 crores during the September quarter to Rs. 154.96 crores in the December quarter. In addition, the net profits declined by 32 percent from Rs. 9.53 crores to Rs. 6.47 crores during the same period.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.82 percent during FY 21-22 to 9.55 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 8.44 percent to 11.36 percent during the same timeframe. Furthermore, the net profit margin increased from 2.64 percent during FY21-22 to 3.19 percent during FY22-23.
According to the latest shareholding pattern, the majority stake of 63.44 percent is held by the Promoters. Retail Investors or the Public own 35.58 percent of the shares, indicating widespread participation from individual investors. Additionally, Foreign Institutional Investors (FIIs) hold the remaining 0.97 percent of the shares.
Headquartered in Maharashtra, GP Petroleums was incorporated in 1983. The company is engaged in the manufacturing and marketing of industrial and automotive lubricants, rubber process oils, and the trading of base oil and fuel oil.
Written By Vaibhav Patil
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