Shares of this micro-cap company operating in the business of mines and minerals hit a 2 percent upper circuit on Tuesday morning after the company reported a 1,250 percent YoY increase in net profit, along with strong revenue growth in its latest quarterly results.
Share Price Movement
During Tuesday’s trading session, Gujarat Toolroom Ltd’s share price reached an intra-day high of Rs.12.16 per share, hitting a 2 percent upper circuit from the previous close of Rs.11.93 apiece.
Rationale for Rise
The strong bullish movement in Gujarat Toolroom Ltd’s stock price resulted from substantial revenue and net profit growth in the latest quarter. In its recent filing for the quarter ending September 2024, the company reported a 73 percent increase in revenue, reaching Rs.271 crore compared to Rs.157 crore in Q2 FY24. Sequentially, revenue also rose by 3 percent from Rs.264 crore in Q1 FY25.
During the same period, the company posted an exceptional 1,250 percent increase in net profits to Rs.27 crore in Q2 FY25 from Rs.2 crore in Q2 FY24 and 77 percent from Rs.23 crore in Q1 FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 179 percent, while return on equity (ROE) is at 170 percent. The company has a strong current ratio of 1.28 and a nil debt-to-equity ratio.
Product and Offerings
Gujarat Toolroom Ltd offers wind energy solutions featuring a 114-meter rotor with a nominal power of 2.1 MW. The company’s wind turbines are designed with an aerodynamic blade profile to maximize energy production while minimizing noise emissions.
It provides various tower options ranging from 68 to 153 meters, tailored to specific sites. Additionally, the company offers optimized solutions for Class S sites and adapts its products to markets in India, China, and Brazil.
Shareholding Pattern
As of October 2024, the shareholding pattern of Gujarat Toolroom Ltd shows that promoters do not hold any stake, while Foreign Institutional Investors hold 27.15 percent. Domestic Institutional Investors and Retail Investors hold 0.10 percent and 72.75 percent, respectively.
About the Company
Gujarat Toolroom Ltd is a leading Indian company specializing in the manufacturing and trading of precision tools and molds. The company has built a solid reputation for its expertise in mold making, enhanced through its partnership with Schober AG of Switzerland, which has played a key role in advancing its technical capabilities.
Written by – Siddesh S Raskar
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