One of the small-cap explosives stocks engaged in the business of Energetics, Mining & Infrastructure Services, and Realty. The stock is in focus after shifting its manufacturing facility from the Kukatpally to Rourkela Plant for producing detonators.
Stock movement:
In Friday’s trading session, GOCL Corporation Limited’s share jumped to an intraday high of 1.67 percent from the previous close of Rs. 382.30. The stock opened at Rs. 376 and is currently trading at Rs. 384.40, with a high of Rs. 388.75 and a low of Rs. 376. The market capitalization now stands at approximately Rs. 1,905.58 crore.
What Happened:
The company is shifting its focus to expanding a new, state-of-the-art manufacturing facility in Rourkela under its wholly owned subsidiary, IDL Explosives Limited, which will focus on producing detonators and other blasting initiation devices.
With a turnover of Rs. 9235 lakhs in FY24 and Rs. 2213 lakhs in H1 FY25 from Energetics operations, this state-of-the-art plant will centralize production, ensuring improved safety and regulatory compliance.
The company’s move aims to consolidate operations in a safer, more efficient location, ensuring continued growth in the Energetics sector. The Kukatpally plant will cease operations as part of this strategic shift.
Capacity:
GOCL Corporation Limited has an annual manufacturing capacity of 270,000 MT of explosives and 192 million initiating devices at the beginning of the year, making it one of the large players in the energetics and commercial explosives industry.
The company has been working to expand its installed capacity, increasing the capacity at its Singrauli facility from 36,000 to 70,000 tons.
Business Segments:
GOCL operates across diverse segments, including commercial explosives through IDL Explosives Ltd. for mining and infrastructure, as well as manufacturing electronic detonators under Energetics.
The company also offers mining chemicals and is involved in land development projects, such as the eco-friendly Ecopolis IT/ITES SEZ in Bangalore.
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Recent quarter results and ratios:
GOCL Corporation Limited’s revenue has decreased from Rs. 163.27 crore in Q2 FY24 to Rs. 127.74 crore in Q2 FY25, which has down by 21.76 percent. The net profit of GOCL Corporation Limited has also been down by 65.39 percent, from Rs. 15.72 crore in Q2 FY24 to Rs. 5.44 crore in Q2 FY25.
GOCL Corporation Limited’s revenue and net profit have grown at a CAGR of 6.06 percent and 3.20 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 7.29 percent and 3.43 percent, respectively. The debt-to-equity ratio of the company is to be 0.85x. GOCL Corporation Limited’s EPS is to be Rs. 12.5.
Shareholding pattern
In September 2024, GOCL Corporation Limited had a majority stake held by the promoters at 72.82 percent, foreign institutional investors at 0.14 percent, domestic institutional investors at 1.25 percent, the government of India at 0.30 percent, and the public at 25.49 percent.
Company Overview:
GOCL Corporation Limited is an India-based multi-division company operating in commercial explosives, energetics, mining chemicals, accessories, and realty. Its segments include energetics, explosives, and property development.
The Energetics Division manufactures mining and infrastructure project accessories, while DL Explosives, a wholly owned subsidiary, produces explosives for mining. The property development division focuses on creating SEZs and industrial parks in Bangalore and Hyderabad, offering products like mining accessories, explosives, and electronic circuit board assemblies.
Written By – Nikhil Naik
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