Synopsis:
Goodluck India fell sharply after the management disappointed its investors by revising its topline guidance for the year from 20 percent earlier to 12 percent now, citing market uncertainties.
This company is an engineering conglomerate engaged in the business of manufacturing and selling engineering products such as sheets, pipes, engineering structures, fabricated structures, forgings, and automobile tubes.
With a market capitalization of Rs 3,849 crore, the shares of Goodluck India Ltd made a day low of Rs 1118.05 per share, down by 11 percent from its previous day closing price of Rs 1261.90 per share. Over the past five years, the stock has delivered a multibagger return of 2,896 percent.
Reason behind this fall
The stock fell mainly because the company has revised its revenue growth forecast for FY26 to 12 percent, a drop from the previous estimate of 20 percent, mainly due to global uncertainties. While they anticipate an improvement in margins compared to last year, they haven’t specified exact figures yet.
Additionally, the company is waiting on a license for its bullet shell project, which could potentially bring in Rs 150-200 crore in revenue this year. The company derives 25 percent of its revenue from exports, of which the US is a big customer. Currently, total exports to the US are around Rs 250 crore, and the management believes that any impact from possible US tariffs will be minimal.
Financial Highlights
The company reported a revenue of Rs 983 crore in Q1 FY26, up by 8 percent from its Q1 FY25 revenue of Rs 913 crore. However, revenue declined by 11 percent from Rs 1,105 crore in its previous quarter.
Regarding its profitability, the company reported a net profit of Rs 40 crore in Q1 FY26, up by 11 percent from its Q1 FY25 net profit of Rs 36 crore. However, it declined by 5 percent from Rs 42 crore in its previous quarter. In Q1 FY26, the company maintained its total production capacity at 5 lakh MTPA, unchanged from FY25 levels.
The capacity breakup includes 2.15 lakh MTPA for the CR sheet and pipes, 1.7 lakh MTPA for Precision pipes and Automobile, 30,000 MTPA for Forging, and 85,000 MTPA for Engineering structure and fabrication. Its current capacity utilisation stands at 90 percent as of Q1 FY26, highlighting strong utilisation of its capacity.
Goodluck India Limited stands out as a top-notch manufacturer and supplier of precision engineering and steel products. Their impressive lineup features ERW and CDW tubes, forgings, galvanized pipes, solar structures, telecom and power transmission towers, road safety products, and railway bridge structures.
The company proudly serves a variety of sectors, including automotive, oil & gas, defense, infrastructure, and engineering, catering to both domestic and international clients, which range from government bodies to private OEMs.
Written by Satyajeet Mukherjee
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