Shares of this penny stock engaged in developing and operating mines, minerals, and related activities, hit a 5 percent upper circuit after the board announced plans to consider issuing bonus shares in a 5:1 ratio at a meeting scheduled for January 6.
Share Price Movement
During Thursday’s trading session, Gujarat Toolroom Ltd.’s share price reached an intra-day high of Rs.18.08 per share, a 5 percent increase from the previous close of Rs.17.22 apiece.
Rationale for Rise
The Board of Directors of Gujarat Toolroom Limited is scheduled to meet on Monday, January 6, 2025, to consider and approve a proposal for issuing bonus shares in the ratio of 5:1.
This would involve issuing five bonus equity shares for every one equity share held by eligible shareholders as of the proposed record date. The issuance will be carried out by capitalizing the securities premium, subject to the approval of the company’s shareholders.
Product and Offerings
Gujarat Toolroom is a prominent Indian company engaged in designing and manufacturing precision tools and engineering products. It also specializes in wind energy solutions, offering turbines with a 114-meter rotor and 2.1 MW capacity, featuring aerodynamic blade designs for high efficiency and low noise.
The company provides tower options from 68 to 153 meters, tailored for various sites, and delivers solutions optimized for Class S locations, catering to markets in India, China, and Brazil.
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Shareholding Pattern
As of December 2024, the shareholding pattern of Gujarat Toolroom Ltd shows that promoters do not hold any stake, while Foreign Institutional Investors hold 30.99 percent. Domestic Institutional Investors and Retail Investors hold 0.07 percent and 68.94 percent, respectively.
Financial Overview
In its latest financial update, the company reported net sales of Rs.271 crore for Q2 FY25, marking a 73 percent increase from Rs.157 crore in Q2 FY24. Additionally, net profits saw an exceptional rise of 1,250 percent, reaching Rs.27 crore, compared to Rs.2 crore during the same period last year. This impressive growth highlights the company’s strong financial performance.
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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