Gujarat Toolroom shares hit upper circuit on ₹29-crore supply order from Reliance Industries

Gujarat Toolroom Ltd shares were locked in a 5% upper circuit limit on Thursday after the company secured a construction supplies contract from Reliance Industries Ltd.

Shares of Gujarat Toolroom gained 5% in the morning trade to touch the upper band at ₹59.98 at 9:26 am on BSE.

The ₹29 crore construction supplies contract marks the first part of GTL's collaboration with Reliance Industries.

The order entails the supply of construction raw materials on demands to active projects of Reliance in various locations. The order will be delivered over 30 working days period.

"While this initial order is a testament to the trust and confidence placed in GTL's capabilities, the company anticipates more such orders from Reliance Industries Limited in the near future. GTL is committed to delivering top-notch products and services, ensuring mutual growth and success for both parties involved," Gujarat Toolroom said in a stock exchange filing.

Gujarat Toolroom share prices are now hovering around its 52-week high of ₹ 62.28 per piece touched on January 9, 2024. The company's shares have zoomed over 6 times from their 52-week low of ₹8.92 touched in April last year.

Gujarat Toolroom Ltd reported a strong year-on-year growth in its financial results for the quarter ending in December 2023.

The company’s revenue from operations has shot up to ₹13.10 crore, over a 17-fold increase YoY. The company posted revenue of ₹70 lakh in the year-ago period.

The net profit in quarter three of the current financial year grew 21 folds YoY to ₹3.2 crore. Gujarat Toolroom posted ₹64.48 lakh net profit in the year-ago period.

Gujarat Toolroom Ltd marked its entry into the mining business with the acquisition of a min in Zambia earlier this year.