8,900 per cent returns in this low PE & high ROE multibagger penny stock at Rs 14.50; Board likely to increase authorised capital to Rs 75 and raise funds via QIP; details inside!
The stock is up by 77 per cent from its 52-week low of Rs 8.16 per share; 2,444 per cent in 3 years and a whopping 8,900 per cent in a decade.
Gujarat Toolroom Ltd (GTL), established in 1991, has traditionally focused on developing and managing mines and minerals. However, their vision has recently extended towards a more sustainable future. GTL's innovative Hybrid-Green Energy Power Plant project represents a significant step in this direction. The company has a market cap of Rs 169 crore.
The Board of Directors of the company is scheduled to be held on Saturday, July 06, 2024, at the registered office of the Company in Ahmedabad, Gujarat, India alia to transact the following matters:
- Increase of authorized share capital from Rs 56 crore divided into 56,00,00,000 equity shares of face value Re 1 per share to Rs 75 crore divided into 75,00.00,000 equity shares of face value Re 1 per share subject to the approval of shareholders of the company.
- The proposal of raising funds by way of issuance equity shares through permissible modes, including but not limited to a public issue, preferential allotment, private placement, including one or more qualified institutions placement (QIP) or through any other permissible mode and/or combination thereof as may be considered appropriate under applicable law, subject to such regulatory/statutory approvals as may be required and the approval of shareholders of the company.
- Increase the limit of investment in the capital to 49 per cent of the total paid-up capital of the company by foreign portfolio investors, foreign institutional investors, foreign direct investment, and non-resident Indians subject to compliance with the Foreign Exchange Management Act, 1999 as amended from time to time, the rules made thereunder and any other applicable laws.
Quarterly Results: The net sales increased by 19,710 per cent to Rs 324.10 and net profit increased by 7,260 per cent to Rs 53.88 crore in Q4FY24 compared to Q4FY23.
Annual Results: The net sales increased by 22,957 per cent to Rs 555.43 crore and net profit increased by 5,164 per cent to Rs 73.12 crore in FY24 compared to FY23.
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Earlier, This state-of-the-art facility spanned 65 acres in Gujarat and leveraged a strategic combination of renewable energy sources. GTL had meticulously allocated land for both solar panels and on-shore wind turbines. The 60-acre solar panel array boasted an impressive capacity of generating 1 Megawatt of clean energy per hour per acre. Alongside this, 15 strategically positioned wind turbines, each with a generation capacity of 2.5 Megawatts per hour, further contributed to the plant's overall power output. This hybrid approach ensured that GTL could maximize energy production while minimizing environmental impact.
The project wasn't just about harnessing renewable resources; it was a testament to GTL's commitment to technological advancement and environmental responsibility. With an estimated investment of Rs 572.5 crore, the Hybrid-Green Energy Power Plant had been poised to generate a significant 97.5 Megawatts of power per hour. Upon completion, this clean and reliable energy was expected to illuminate an estimated 70,000 to 73,000 households, contributing positively to the social and environmental landscape.
Today, shares of Gujarat Toolroom Ltd were locked in a 2 per cent lower circuit to Rs 14.50 per share from its previous closing of Rs 14.79. The stock’s 52-week high of Rs 45.97 per share and its 52-week low is Rs 8.16 per share. The company's shares have a PE of 7x and an ROE of 61.5 per cent.
As of March 2023, the FIIs own 0.28 per cent stake while the rest 99.72 per cent stake is owned by the public shareholders. The stock is up by 77 per cent from its 52-week low of Rs 8.16 per share; 2,444 per cent in 3 years and a whopping 8,900 per cent in a decade.
Disclaimer: The article is for informational purposes only and not investment advice.
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