During Tuesday’s trading session, the shares of a company in the business of development and operation of mines and minerals hit a 2 percent upper circuit at Rs. 14.38 on BSE, after the company announced receiving an order worth Rs. 310 million from Reliance Industries.
With a market cap of Rs. 230.3 crores, the shares of Gujarat Toolroom Limited opened in the green at Rs. 14.37, up by nearly 4.9 percent, compared to its previous closing price of Rs. 13.7.
What’s the news:
According to the latest filings with the BSE, Gujarat Toolroom Limited has been awarded a new order valued at Rs. 31 crores from Reliance Industries Limited for the supply of construction materials for the Jamnagar facility. The order is expected to be completed within the next two months.
In addition, the company has completed a prior order worth Rs. 29 crores secured on 5th March 2024 for construction supplies to Reliance Industries Limited.
With these two orders, the total value of contracts from Reliance Industries has now reached a substantial Rs. 60 crores.
Further, the company remains optimistic about the potential for securing additional orders from Reliance Industries and other key clients, which is expected to drive future growth and revenue expansion.
Previous News:
On 11th October, Gujarat Toolroom announced the successful completion of its Qualified Institutional Placement (QlP), raising Rs. 50 crores through the issue and allotment of nearly 4.34 crore equity shares at a price of Rs. 11.5 per share, including a premium of Rs. 10.5 per share.
Prominent institutional investors, including Zeta Global Funds (OEIC) PCC Ltd and Eminence Global Fund PCC Trade Fund 1, participated in the QlP, with each entity subscribing to around 2.17 crore equity shares, collectively representing 50 percent of the total allotment.
The QIP was initiated to provide the company with additional capital aimed at accelerating its long-term strategic goals. These objectives encompass growth plans, R&D for clean energy projects, the expansion and development of mining businesses, as well as fulfilling working capital requirements.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 26300% from Rs. 1 crore in Q1 FY24 to Rs. 264 crore in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 1 crore to Rs. 23 crore, indicating a rise of nearly 2200% YoY.
About the company:
Gujarat Toolroom Limited is engaged in a diversified trading business, dealing in a wide range of products including silver conductive ink, agriculture commodities, construction materials, fabrics, as well as trading of equity shares.
Written by Shivani Singh
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