Small-cap stock below ₹50: Green energy stock hits upper circuit after this profit rise update

Small-cap stock below ₹50: According to the latest market data, Gujarat Toolroom shares have been in an uptrend since the early morning session on Tuesday. Today, the share price opened upside at ₹24.12 apiece on BSE and touched an intraday high of ₹26.29 apiece on BSE. The BSE-listed small-cap stock hit a 5 percent upper circuit while climbing to this intraday high. The stock witnessed strong buying after the company, as per its official announcement, declared its plans to increase annual profitability by ₹145.82 Crore. This significant increase in profitability will be achieved through the Hybrid-Green Energy Power Plant project, demonstrating the company's strategic focus on sustainable energy and potential for future growth.

The small-cap company informed us about the development through an exchange filing, highlighting the potential positive impact of the Hybrid-Green Energy Power Plant on the environment and society: "The Hybrid-Green Energy Power Plant is a state-of-the-art facility spanning 65 acres in Gujarat. With an estimated investment of INR 5.72 billion ( ₹572.5 Crores), the plant is poised to generate 97.5 Megawatts of power per hour. The project comprises 60 acres of solar panel coverage, producing 1 Megawatt of energy per hour per acre, alongside 15 on-shore wind turbines, each generating 2.5 Megawatts per hour. The power plant is expected to provide electricity to approximately 70,000 to 73,000 households upon completion, driving positive environmental and social impact."

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Gujarat Toolroom profit rise update 

The company's profit has been on a steady rise, reflecting its strong financial performance. This positive trend has also been a contributing factor to the recent uptrend in the company's stock price, instilling confidence in the company's financial stability and growth potential.

In a written press statement shared with the exchange filing, the small-cap company emphasized the significance of the Hybrid-Green Energy Power Plant project, stating, "Gujarat Toolroom Ltd's pioneering project is set to reshape the energy landscape and offer lucrative investment prospects. This monumental endeavour underscores GTL's unwavering commitment to innovation, environmental stewardship, and creating long-term value for stakeholders."

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"The Hybrid-Green Energy Power Plant represents a visionary investment with a total project cost of ₹572.5 crores, signalling GTL's significant commitment to driving positive change. This comprehensive investment encompasses various critical components, including ₹6.5 crore for land acquisition, ₹150 crore for state-of-the-art solar panels, ₹225 crore for cutting-edge wind turbines, ₹45 crore for robust cables and wiring infrastructure, ₹6 crores for transformers, and ₹140 crores allocated for other essential infrastructures and skilled workforce costs," the small-cap company said.

Not only does GTL's Hybrid-Green Energy Power Plant offer environmental benefits, but it also holds immense promise for investors seeking attractive returns. With the cost of electricity in Gujarat averaging around ₹4 per kWh, the project is poised to generate substantial revenue streams. A conservative estimate places the daily revenue projection at an impressive ₹46,80,000, translating to an annual profit estimate of ₹145.82 crores after accounting for operational costs. These robust financial projections highlight the project's potential to deliver attractive returns and create significant value for investors.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.