Shares of GG Engineering were locked in the 20% upper circuit limit at ₹1.90 in early morning trade today, October 24, following the company’s positive financial results for the September quarter (Q2) of FY25. With today’s rally, the stock snapped its five-day losing run. For Q2FY25, GG Engineering reported a net profit of 11 crore in the same period last year, a net profit of 1 crore in the same period last year, and a net loss of 2 crore in the preceding June quarter. This net profit exceeds the combined net profit of 27 crore for FY24.
Revenue from operational surged to 106 crores in Q2FY25, marking a 45.2 % year-on-year ( YOY) improvement from 73 crores in Q2FY24 and up from 70 crores in the first quarter of the current fiscal year. The EBITDA reached 13 crore, compared to just 1 crore in the same period last year. The company supplies industrial engines for various applications, marine engines, and spare parts for diesel generator seats to both local and international markets.
Technological advancement in diesel generators, along with rising energy demand from various end-use industries, are expected to create lucrative growth opportunities for key players, enabling them to strengthen their market positions in the coming years.
Strong Financial Performance
In its latest quarterly report, G G Engineering showcased impressive growth metrics, with total income soaring by 154% year-on-year. The company reported a net profit increase from ₹53.7 crore to ₹54.7 crore for Q4 FY24. This remarkable performance has attracted retail investors, who have increased their holdings from 97.33% to 98.03% in the last quarter, indicating strong confidence in the company’s future prospects.
Stock Volatility And Market Dynamics
Despite the recent uptick, G G Engineering’s stock has experienced considerable volatility over the past year. The share price has fluctuated significantly, with a 52-week high of ₹2.97 and a low of ₹0.87. Currently, it is up approximately 131% from its lowest point, demonstrating resilience amid market fluctuations. However, over the past three years, the stock has seen a decline of about 71%, highlighting the challenges it has faced.
Stocks Up 150 % since April 2023
Since April 2023, the company’s shares have been in recovery mode, rising from Re 0.76 per share to the current level of 1.90, resulting in a remarkable gain of 150 %. Notably, the stock surged 84 % in November 2023 alone. Despite this recovery, the stock is still trading approximately 80% below its all-time high of 9.33 per share, which it hit in July 2021.
