Q2FY25 results effect: Smallcap stock below ₹50 hits upper circuit for second day in a row

Shares of penny stock Gujarat Toolroom reached the 2 per cent upper circuit of ₹12.16 for the second consecutive session on Tuesday, November 12, following robust quarterly results for the period ended September 2024 (Q2FY25).

The company's net profit surged significantly to ₹26.78 crore in Q2FY25, compared to ₹2.4 crore in the same quarter of the previous year, and showed an 18 per cent sequential growth from ₹22.73 crore in the June quarter. Total income for the quarter rose 73 per cent year-on-year (YoY) to ₹271 crore, up from ₹156.7 crore in the corresponding period last year, with a marginal sequential increase of 2.5 per cent from ₹264.35 crore in the June quarter.

For the first half of FY25 (H1FY25), net profit saw a dramatic rise to ₹49.13 crore, compared with ₹3.2 crore in the same period last year. Total income for H1FY25 jumped over 239 per cent to ₹535.4 crore from ₹157.8 crore in the prior year.

Stock Price Trend

Before the recent back-to-back upper circuit sessions, Gujarat Toolroom's stock had been locked in a 2 per cent lower circuit for four consecutive sessions from November 5 to 8. Over the past year, the stock has declined by more than 70 per cent and has fallen over 65 per cent year-to-date in 2024. 

The stock currently remains over 73 per cent below its 52-week high of ₹45.97, which it reached in March 2024. However, it has risen more than 13 per cent from its 52-week low of ₹10.75, recorded in August 2024.

Other Recent Developments

In October, Gujarat Toolroom successfully completed a Qualified Institutional Placement (QIP), raising ₹50 crore at an issue price of ₹11.50 per share. This issuance attracted significant participation from institutional investors such as Zeta Global Funds and Eminence Global Fund PCC Trade Fund.

In an exchange filing, the company stated, “Gujarat Toolroom is delighted to announce the successful completion of its Qualified Institutional Placement (QIP), raising ₹50 crore through the issue and allotment of 4,34,78,260 equity shares at a price of ₹11.50 per share, including a premium of ₹10.50 per share. This represents a significant milestone in the Company’s ongoing growth journey.”

The filing further noted that Zeta Global Funds (OEIC) PCC Ltd and Eminence Global Fund PCC Trade Fund 1 collectively subscribed to half of the total allotment, each acquiring 2,17,39,130 equity shares. The company highlighted that the strategic purpose of the QIP was to secure additional capital to drive long-term growth objectives.