Penny stock under ₹5: Company board approves allotment of bonus shares

Penny stock under ₹5: Gujarat Toolroom shares hogged the limelight in intra-day trade on Thursday, February 20, following the board nod to allotment of bonus shares and announcement of the December quarter (Q3) results.

Bonus share allotment details

The company on Wednesday after market trading hours informed that its board has approved the allotment of 116,03,28,150 shares of ₹1 each as fully paid bonus shares to the shareholders whose names appeared on the register as on the record date i.e. February 18.

The company had announced a bonus share issue in the ratio of 5:1, meaning that it would issue five shares for every one share held.

Q3 earnings snapshot

Gujarat Toolroom also announced its Q3 results on Wednesday, wherein it witnessed a 76% year-on-year (YoY) increase in its revenue from operations to ₹230.73 crore from ₹131.06 crore in the same quarter last year.

However, its profit plunged 90% YoY to ₹1.43 crore in the quarter under review, as expenses jumped 99%. The profit figure stood at ₹14.32 crore in the December 2023 quarter.

Stock price impact

Gujarat Toolroom share price hit the 5% lower circuit following these developments of ₹2.34 per share. The stock has been in base-building over the last one year, having lost 75% of its value.

However, in the short term, it has offered decent returns to investors, rallying 16% in the last three months and 10% in the last six months, as per Trendlyne data.

Gujarat Tool Room, which specializes in building high-production multi-cavity moulds, hit a fresh 52-week high of ₹7.68 on the BSE in March 2024. Meanwhile, its 52-week low stands at ₹1.70, which it touched on January 30, 2025.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.