North Star Opportunities Fund a prominent foreign institutional investor, has reduced its position in a leading engineering and manufacturing company, selling off 4.3% of its holdings for nearly Rs 19 crore in a significant block deal. This transaction marks a notable shift in the firm’s ownership structure, as the fund’s stake has dropped from its previous 7.75% holding reported last December.
Share Price Movement
The share price of Gujarat Toolroom Limited hit lower circuit of 5 percent to Rs. 18.04 per share on Monday, an decline from its previous close of Rs. 18.98 per share. The market capitalisation now stands at approximately Rs. 418.95 crore as of January 06, 2025.
Reason for Share Price ?
North Star Opportunities Fund, an FII, has sold a 4.3% stake in the company for Rs 18.98 crore at an average price of Rs 18.98 per share. As of December 20, 2024, the fund had held a 7.75% stake in the company.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, Gujarat Toolroom’s consolidated revenue from operations has increased by 72.61 percent YOY from Rs. 157 crore in Q2 FY24 to Rs. 271 crore in Q2 FY25 and increased by 2.65 percent QoQ from Rs. 264 crore in Q4 FY24.
The company’s consolidated net profit has increased by 1,250 percent , from Rs. 2 crore in Q2 FY24 to Rs. 23 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 17.39 percent QoQ from Rs. 27 crore.
The average price-to-earnings (P/E) ratio in the fertiliser industry is 42.12, which is trading at a higher P/E multiple than Gujarat Toolroom’s current P/E ratio of 3.55.
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Market Outlook
The demand for coal, steel, and zinc in India is expected to grow significantly due to increased infrastructure development, with steel demand projected to rise by 10%. The government’s focus on self-reliance in speciality steel and the PLI Scheme is attracting investments and creating job opportunities. With the goal to achieve 300 MTPA steel capacity by 2030–31, India is poised for growth in the steel sector. Zinc demand will also double over the next decade due to infrastructure investments.
Shareholding Pattern
As of the September 2024 shareholding pattern, Gujarat Toolroom Limited is primarily held by the public at 68.94 percent, foreign institutional investors hold 30.99 percent, and domestic institutional investors hold 0.07 percent.
About Company
Gujarat Toolroom Limited, founded in 1983 and headquartered in Ahmedabad, is a key player in India’s engineering sector, specialising in tool design, precision machining, and injection moulding. The company manufactures components for automotive, aerospace, and medical industries. They also offer rapid prototyping through 3D printing and provide training in precision engineering. Known for quality and innovation, Gujarat Toolroom continues to be a leader in the tooling and precision engineering market.
Written By Fazal Ul Vahab C H
Disclaimer
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