Up 500% in a year! This multibagger stock hit upper circuit; Here's why

Shares of Gujarat Toolroom Ltd hit an upper circuit on Tuesday after the company announced strategic acquisition of mines in Zambia, which may increase its revenue significantly. The company informed about the same through an exchange filing with the BSE on Tuesday.

"The company has successfully concluded the acquisition of 6 hectares of mines in Zambia, marking a significant stride in our pursuit of sustainable growth," said the company in the exchange filing. The strategic location and resource abundance of these mines position GTL for substantial success in the mining sector, it said.

"These newly acquired mines boast a rich reservoir of valuable resources, including copper, cobalt, gold, nickel, manganese, emeralds, beryllium, various gemstones, sulphur, zine, coal, iron ore, steel, limestone, uranium, and other platinum-group metals," it added.

Following the announcement, shares of Gujarat Toolroom were locked in the buyer's circuit limit of 5 per cent at Rs 51.64 on Tuesday. The scrip had settled at Rs 49.19 crore in the previous trading session on Monday. The stock has rallied more than 500 per cent from its 52-week low at Rs 8.58 hit in January 2024.

The company envisions each hectare of these mines, yielding an estimated annual revenue ranging from $15-20 million. With a cumulative expanse of 6 hectares, the company confidently anticipates a minimum annual revenue of Rs 700 crores upon the operational commencement of these mines in the upcoming quarter, said the company.

Incorporated in 1991, Gujarat ToolRoom is in the business of development and operation of mines and minerals and other allied activities. Currently, it is providing Mining services and the management is working on other business opportunities.

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