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Big Order from Reliance Industries: Gujarat Toolroom Receives Rs 29 Crore Order!

05 March 20243 mins read by Angel One
The stock has delivered impressive multibagger returns of 424.37% in the last year and has added 24.31% in the past month.
Big Order from Reliance Industries: Gujarat Toolroom Receives Rs 29 Crore Order!
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Sell-off in Broader Markets and Upper Circuit Stock

Indian benchmark indices have recovered from lower levels, driven by buying interest in Nifty PSU Bank, Nifty Auto, and Nifty Bank. Despite the sharp recovery, broader market indices are trading in the red, with Nifty Small-cap tumbling over 1%, while Mid-cap dipped 0.27%. Amidst this volatility, Gujarat Toolroom Ltd. stands out, being locked at an upper circuit limit of 5%.

Gujarat Toolroom Ltd (GTL) aims to become a leading export-focused company in gold exploration, mining, extraction, and jewelry processing, adhering to responsible and environmentally friendly practices. The company is positioned to be a leading gold refining plant in Zambia, processing pure gold to international standards.

So, what’s behind the surge in price?

The company has recently secured a significant order worth Rs 29 crore (Rs 290 million) from Reliance Industries Ltd for construction supplies. This substantial order underscores the trust and confidence that index heavyweight Reliance Industries Ltd has placed in GTL’s capabilities and quality of service.

The company anticipates more orders from Reliance Industries Ltd in the upcoming weeks, further solidifying the partnership between the two entities. Moreover, GTL expects additional orders from various clients in the coming months, which will significantly contribute to the company’s revenue and profit growth.

Multibagger Returns

The stock’s 52-week high and low stand at Rs 62.28 and 8.92, respectively. Now, here comes the most interesting aspect about the stock: it has delivered impressive multibagger returns of 424.37% in the last year and has added 24.31% in the past month.

Key Insights from the Investor Presentation

According to the investor presentation, each hectare of mine can produce 750-1000 grams/day, and 6 hectares of mine can produce 4.5 to 6 KG gold/day. Thus, in a 12-month period, mines can produce 1.7-2.2 tons of gold/year. With the estimated gold price ranging between Rs 55,000 to Rs 66,000 per KG, daily revenue is expected to be Rs 2.5 crore to 3.3 crore, and yearly revenue (based on a 300-day cycle) would be Rs 750 crore to 990 crore. These figures are based on ideal conditions, which may or may not change in the future.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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