GOCL Corp shares rise as company plans to enter defence & space sector

Shares of GOCL Corporation Ltd surged about 4 per cent during the trading session on Thursday in an otherwise weak market after the company announced its plans for restructuring the business model to respond to various opportunities. The company informed about the same through an exchange filing on Wednesday. The Board of Directors of GOCL Corporation , in its meeting held on October 25, Wednesday, has been engaged in discussing the company's foray in the space Sector. GOCL was among the contributors to ISRO’s Chandrayan mission, said the company in the filing. The company board is also exploring opportunities in the defence sector and it has applied for and expects a licence to manufacture certain defence products related to aircraft pilot safety, it said. "The Company has built a good presence in the electronic sector, specifically areas related to automotive engineering, automobile battery charging, 5G equipment and more," the filing added. Following the announcement, shares of GOCL Corporation gained about 4 per cent to Rs 581.60 on Thursday, commanding a total market capitalization of close to Rs 2,900 crore. The smallcap counters had settled at Rs 561.75 in the previous trading session on Wednesday. Shares of GOCL Corp have delivered a return of Rs 127 per cent from its 52-week low at Rs 255.70 hit in November 2022. The stock has gained 85 per cent in the last six month period, while it is up 55 per cent in the year 2023 so far. The stock has risen 36 per cent in the one month timeframe. GOCL Corporation has run its detonator factory in Hyderabad since 1961. The factory is on 233 acre of owned land and 535 acre of leased land at Kukatpally, together creating a buffer zone. This land was specifically allocated for manufacturing of explosives and detonators.