Multibagger heavy electrical equipment stock at Rs 2.29 hit 10 per cent upper circuit on July 02 with spurt in volume by more than 4 times on BSE

From Re 0.98 to Rs 2.29 per share, the stock gave multibagger returns of 133.67 per cent from its 52-week low till today’s intraday high.

Today, shares of G G Engineering Ltd hit a 10 per cent upper circuit to Rs 2.29 per share from its previous closing of Rs 2.09 per share. The stock’s 52-week high is Rs 2.97 per share and its 52-week low is Re 0.98. The shares of the company saw a spurt in volume by more than 4 times on BSE and the company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces. 

Earlier in May 2024, the Board of Directors approved the conversion of 5,00,00,000 warrants into the same number of equity shares for a non-promoter/public category investor (Ultimateannex Trading Private Limited). This conversion comes after a previous issuance of these warrants in December 2023, where investors paid 25 per cent of the issue price upfront (Rs 0.33 per warrant) and held the right to convert them into equity shares upon paying the remaining 75 per cent (Rs 0.99 per warrant). With this conversion, the company's issued and paid-up capital increases to Rs 158,44,98,800 and the new shares have the same rights as existing ones. There are still 4,50,00,000 warrants outstanding that can be converted by their holders following the same process.

G G Engineering Limited (GGEL) is an Indian company that manufactures engineering products, infrastructure, and structural steel. The company was established in 2006 and is based in India. GGEL's products are used in many industries, including construction, infrastructure, mega projects, modern buildings, and high-rise residential and commercial projects.

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According to Quarterly Results, net sales increased by 75.7 per cent to Rs 7,642.11 lakh and net profit increased by 908.5 per cent to Rs 547.03 lakh in Q4FY24 compared to Q3FY24.In its annual results, net sales increased by 113 per cent to Rs 21,210.50 lakh in FY24 compared to Rs 9,956.70 lakh in FY23. The company reported a net profit of Rs 710.47 lakh in FY24 compared to Rs 793.29 lakh in FY23.

The company has a market cap of over Rs 300 crore and has delivered good profit growth of 26 per cent CAGR over the last 5 years. As of March 2023, promoters of the company own a 1.97 per cent stake while the public owns a 98.03 per cent stake. From Re 0.98 to Rs 2.29 per share, the stock gave multibagger returns of 133.67 per cent from its 52-week low till today’s intraday high. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.