Dark horse stock of the day: Gandhi Special Tube jumps 20% today

The shares of Gandhi Special Tube Limited experienced a sharp rise today. The stock opened at Rs 681.9, higher than the previous day’s closing price of Rs 624.70. During the intraday session, the stock surged by 20% with significant trading volume.   

Upon analysing today’s share volumes, it is evident that there has been a substantial increase of more than 3 times in volumes than its average trading volumes on the BSE. While writing this article, the shares of the company are up by Rs 124.90, which is at Rs 749.60 on the BSE. 

The stock’s 52-week highs and lows are recorded at Rs 749.60 and Rs 370.10, respectively. With a market capitalization of Rs 910.91 crore, the stock has displayed remarkable performance in recent times, delivering a 22% return in a week and an impressive 95% return in the last year.  

Financial Performance    

The company posted its June quarter on August 09, revenue from operations experienced an increase of 5% YoY, going from Rs 44 crore to Rs 46 crore. The operating profit of the company remained flat at Rs 17 crore and on a sequential basis it grew from Rs 13 crore to Rs 17 crore, the operating profit stood at 37%.   

Whereas the net profit of the company amounts to Rs 16 crore, the net profit margins stood at 35% in FY23.   

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 36% and 27%, respectively. The Book value of the company is Rs 150, whereas the price-to-earnings ratio is 17.8 times.   

Business Overview 

Gandhi Special Tubes Limited, an Indian company, specialises in the production of seamless and welded steel tubes, nuts, and the generation of wind power. The company’s diverse product range includes cold-drawn bright annealed seamless tubes, precision electric resistance welded tubes, cold-formed coupling nuts, and high-pressure fuel injection tubes. 

With a focus on the automotive, agriculture, construction, and engineering sectors, the company manufactures components for automobiles and cold-formed tube nuts used in fuel injection tube assemblies, as well as hydraulic and other tube assemblies. 

Additionally, the company is involved in the power sector, operating windmills in Maharashtra and Gujarat. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.