Shares of Gujarat Toolroom are in focus as the company announced a fresh order worth Rs 1.5 billion
Analysts are bullish on the company's stock, with targets as high as Rs 32 and Rs 50, based on its undervalued P/E ratio and strong financial performance.
Gujarat Toolroom Ltd., a major player in the industrial sector, has bagged a hefty impex order worth Rs 150 crore worth Rs 1.5 billion, which will be implemented in the current quarter with an expected operating profit margin of 5% – 10%. This impressive order highlights the growing influence and operational excellence of Gujarat Toolroom in the global market.
Apart from the recent Impex order, Gujarat Toolroom has experienced financial growth. The company has shown growth in its revenue, profit margin and earnings per share. With an unprecedented 22,970% jump in revenue from ₹2.41 crore to ₹556 crore, a 4,995% increase in profit after tax to ₹70.83 crore, and a 5,000% increase in EPS to ₹12.75 crore, Gujarat Toolroom's financial growth represents an extraordinary financial growth.
This growth has significantly impacted the stock's valuation, making it an attractive investment opportunity. Analysts are predicting bullishness for the company's stock, with targets as high as ₹32 and ₹50, based on its undervalued P/E ratio and strong financial performance.
Adding to the company's momentum, Gujarat Toolroom recently completed its first rights issue in India, which was oversubscribed by 2x. This significant achievement highlights investor confidence and the company's ability to attract substantial capital, further strengthening its financial position and growth potential. The success of the rights issue not only reinforces the company's commitment to expansion but also increases its ability to undertake significant projects and investments.
(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)