Small-cap stock below ₹20: Penny stock hits the upper circuit after receiving an order from Reliance Industries

Small-cap stock below 20: Gujarat Toolroom's share price rose 5% after announcing the completion of a 290 million order and securing a new 310 million contract from Reliance Industries, marking significant progress in their partnership.

Nishant Kumar
Updated15 Oct 2024, 12:16 PM IST
Small-cap stock below  <span class='webrupee'>₹</span>20: Penny stock hits the upper circuit after receiving an order from Reliance Industries
Small-cap stock below ₹20: Penny stock hits the upper circuit after receiving an order from Reliance Industries(Pixabay)

Small-cap stock below 20: Gujarat Toolroom share price surged 5 per cent to hit its upper circuit of 14.38 on BSE in intraday trade on Tuesday, October 15, after the company announced it completed a previous order and was awarded a new one from Reliance Industries. Shares of the company that deals in plastic products opened at 14.37 on Tuesday against their previous close of 13.70 and rose 4.96 per cent to the level of 14.38.

In an exchange filing on October 15, Gujarat Toolroom said, “...successfully completed an order worth 290 million for the construction supplies to Reliance Industries on 14th October 2024. This order was previously secured on 5th March 2024 and marks a critical milestone in our partnership with one of India’s most prominent conglomerates.”

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"We are also excited to announce that the company has been awarded a new order worth 310 million from Reliance Industries for the supply of additional construction materials. This order is expected to be completed within the next two months, further strengthening our ongoing collaboration with Reliance Industries," the company further said.

With these two orders, the company's cumulative order value from Reliance Industries stands at 600 million.

"The continuation of this partnership reinforces the trust Reliance Industries places in Gujarat Toolroom, affirming our position as a dependable provider of construction supplies. We are optimistic about receiving further orders from Reliance Industries and other key clients, which will drive future growth and revenue expansion for the company," said Gujarat Toolroom.

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The company recently successfully completed a 500 million qualified institutional placement (QIP), issuing 43.48 million equity shares at 11.50 per share. The company intends to utilise the capital raised from the QIP to accelerate its expansion plans, focusing on growth areas like clean energy, mining, and international operations.

Gujarat Toolroom has exposed itself to multiple high-growth sectors.

It has developed a hybrid energy power plant in Gujarat and has plans to integrate solar, wind, and other renewable energy sources.

Additionally, the company has acquired gold mines in Zambia to add significant value to its portfolio.

"The increasing global demand for precious metals presents a lucrative opportunity for the company’s mining division. Furthermore, establishing a Dubai subsidiary marks another strategic leap, giving Gujarat Toolroom a foothold in the rapidly growing Middle Eastern and African markets. This subsidiary will focus on expanding the company’s presence in the mining and construction sectors, where demand is robust and growing," the company said.

Also Read | Why investors should still avoid Chinese stocks

Gujarat Toolroom share price trend

The small-cap stock has seen solid gains this month so far, surging as much as 20 per cent after a 15 per cent decline in September. It hit its 52-week high of 45.97 on March 11 this year but witnessed significant profit booking thereafter. The stock plumbed its 52-week low of 10.75 on August 14 this year.

Year-to-date, the stock has seen a decline of 59 per cent.

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First Published:15 Oct 2024, 12:16 PM IST
Business NewsMarketsStock MarketsSmall-cap stock below ₹20: Penny stock hits the upper circuit after receiving an order from Reliance Industries

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