Why Goodluck India shares rallied 2,000% in just 44 months, CEO Ram Aggarwal explains
Believes the company’s revenues will reach Rs 7,000-8,000 crore and profit after tax Rs 400 crore plus in the next three to four years.
- Sep 6, 2024,
- Updated Sep 6, 2024 1:44 PM IST
A small-cap player from the metal sector has created massive wealth for investors in the past 44 months. Shares of the steel and specialty steel-maker soared 2,049% to Rs 1,197.70 on September 5, 2024, from Rs 55.50 on January 1, 2021. This is Goodluck India, which now has a market capitalisation of Rs 4,000 crore and whose net profit has increased at a CAGR of more than 60% since FY21. Besides, the management has remained bullish on the company’s growth prospects.
Ram Aggarwal, CEO of Goodluck India, believes that the company will reach revenues of Rs 7,000-8,000 crore and profit after tax of Rs 400 crore plus in the next three to four years, with an operating profit margin of over 10-11%.
For the latest quarter ended March 2024, the company reported consolidated revenue and net profit of Rs 3,483.85 crore and Rs 131.93 crore, respectively. The EBITDA margin stood at 8.37% in FY24. At present, as much as 30% of the company’s revenue comes from exports (to Europe, the US, and Australia, among others).
“The company was in R&D mode till 2021. Whatever products we made they were new ones. By 2021 whatever investments we had made they took our journey fast. We may touch Rs 165-170 crore of net profit in FY25,” Aggarwal.
Going ahead, Goodluck India is focusing on launching its high-margin products aimed at the defence and aerospace sectors, as well as those designed for the automotive tubing segment. At present, defence contributes 2% to total revenue.
Some of the marquee clients of the company includes Indian Railways, ABB, L&T, Reliance Industries, Sterling and Wilson, PowerGrid, NTPC, BHEL and EIL among others.
In FY24, the company also ventured into the construction of station buildings and Super Critical Bridges for high-speed bullet trains and smart city structures related to the bullet train project.
Goodluck India is also among the major auto-tube suppliers globally. According to the management, they on the vendor list of Elon Musk’s Tesla. BMW, Volkswagen, Audi and Mercedes-Benz are among the other major global clients of the company.
The company is headquartered in Ghaziabad, Uttar Pradesh and boasts 6 manufacturing units situated in Sikandrabad, Uttar Pradesh, and Kutch, in Gujarat, with a total capacity of 412,000 MTPA. According to the latest annual report, Goodluck India, the second-largest manufacturer of auto-grade precision steel tubes in India, currently operates at more than 90% of its current capacity.
A new facility near its existing plant in Sikandrabad, with a capacity of 50,000 TPA, is set to begin operations during FY24-25. The company supplies tubes to key segments of the automotive industry including passenger cars, commercial vehicles, and two-wheelers. It is experiencing growing demand from automotive OEMs and holds a preferred Category-2 supplier status for international clients.
A small-cap player from the metal sector has created massive wealth for investors in the past 44 months. Shares of the steel and specialty steel-maker soared 2,049% to Rs 1,197.70 on September 5, 2024, from Rs 55.50 on January 1, 2021. This is Goodluck India, which now has a market capitalisation of Rs 4,000 crore and whose net profit has increased at a CAGR of more than 60% since FY21. Besides, the management has remained bullish on the company’s growth prospects.
Ram Aggarwal, CEO of Goodluck India, believes that the company will reach revenues of Rs 7,000-8,000 crore and profit after tax of Rs 400 crore plus in the next three to four years, with an operating profit margin of over 10-11%.
For the latest quarter ended March 2024, the company reported consolidated revenue and net profit of Rs 3,483.85 crore and Rs 131.93 crore, respectively. The EBITDA margin stood at 8.37% in FY24. At present, as much as 30% of the company’s revenue comes from exports (to Europe, the US, and Australia, among others).
“The company was in R&D mode till 2021. Whatever products we made they were new ones. By 2021 whatever investments we had made they took our journey fast. We may touch Rs 165-170 crore of net profit in FY25,” Aggarwal.
Going ahead, Goodluck India is focusing on launching its high-margin products aimed at the defence and aerospace sectors, as well as those designed for the automotive tubing segment. At present, defence contributes 2% to total revenue.
Some of the marquee clients of the company includes Indian Railways, ABB, L&T, Reliance Industries, Sterling and Wilson, PowerGrid, NTPC, BHEL and EIL among others.
In FY24, the company also ventured into the construction of station buildings and Super Critical Bridges for high-speed bullet trains and smart city structures related to the bullet train project.
Goodluck India is also among the major auto-tube suppliers globally. According to the management, they on the vendor list of Elon Musk’s Tesla. BMW, Volkswagen, Audi and Mercedes-Benz are among the other major global clients of the company.
The company is headquartered in Ghaziabad, Uttar Pradesh and boasts 6 manufacturing units situated in Sikandrabad, Uttar Pradesh, and Kutch, in Gujarat, with a total capacity of 412,000 MTPA. According to the latest annual report, Goodluck India, the second-largest manufacturer of auto-grade precision steel tubes in India, currently operates at more than 90% of its current capacity.
A new facility near its existing plant in Sikandrabad, with a capacity of 50,000 TPA, is set to begin operations during FY24-25. The company supplies tubes to key segments of the automotive industry including passenger cars, commercial vehicles, and two-wheelers. It is experiencing growing demand from automotive OEMs and holds a preferred Category-2 supplier status for international clients.