Gujarat Toolroom extends rally as stock hits upper circuit; here's why

Shares of Gujarat Toolroom Ltd hit their upper circuit level on Monday after the company announced the execution of orders, which improves the company's bottomline outlook. The firm informed about the same through an exchange filing on Saturday.

Gujarat Toolroom (India) has successfully executed an order valued at Rs 550 million (Rs 55 crore), achieving a commendable bottom line of Rs 55 million (Rs 5.5 crore), said the company in the exchange filing. At present, the company's current order book stands at over Rs 300 crore, paving the way for upcoming two quarters, it said.

"We are committed to executing the remaining orders as scheduled, and we expect a significant turn-around in our financials, particularly with the imminent commencement of operations at our Zambia Mines within the next 6-8 months," added the exchange filing further.

Following the announcement over the orders, shares of Gujarat Toolroom hit an upper circuit of 5 per cent to Rs 59.32 on Monday, commanding a total market capitalization close to Rs 330 crore. The scrip had settled at Rs 56.50 in the previous trading session on Friday.

Shares of Gujarat Toolroom have surged about 600 per cent from its 52-week low at Rs 8.58, hit on January 24, 2023. The stock has rallied more than 340 per cent in the last six-month period, while it has more than doubled investors wealth in the three-month period.

Earlier this month, Gujarat Toolroom announced acquisition of 6 hectares of mines in Zambia, which boast a rich reservoir of valuable resources. The company envisions each hectare of these mines, yielding an estimated annual revenue ranging from $15-20 million.

Incorporated in 1991, Gujarat ToolRoom is in the business of development and operation of mines and minerals and other allied activities. Currently, it is providing Mining services and the management is working on other business opportunities.

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