Multibagger Stock GOCL Corporation Rallies On Announcing Business Reconstruction Model

On Thursday, the shares of GOCL Corporation opened higher on the BSE at Rs 581.60 and were trading with an upside gap of 1.47% at Rs 570 after the Board announced restructuring the company's business model to respond to various opportunities.

"The Board of Directors of GOCL has been engaged in discussing the subject of restructuring the Company's business model to respond to various opportunities.

Company's foray in Space Sector: A testimony of this effort is the fact that GOCL has proudly contributed to ISRO's Chandrayan Mission.

Defence Sector initiatives: We have applied for and expecting licence to manufacture certain defence products related to aircraft pilot safety.

Electronics: The Company has built a good presence in Electronic Sector, specifically area related to Automotive Engineering, Automobile Battery charging, 5G equipment etc," said the company in a stock exchange filing.

Since 1961, the company has operated a detonator manufacturing in Hyderabad. At Kukatpally, the plant is situated on 233 acres of owned land and 535 acres of leased land that together form a buffer zone. This site was set aside expressly for the production of detonators and explosives. Due to the city's fast urbanisation and development brought on by the growing population, the city's essence has changed over time, and as a result, the company is experiencing more and more challenges at this site over the long run.

Therefore, the Board made the decision to merge its operations related to explosives and detonators in Rourkela, where the necessary land and facilities are already in place. There will be more business synergies as a consequence.

As a result, in September 2023, the company's wholly-owned subsidiary IDL Explosives Limited filed for and was granted a licence to manufacture detonators. The project is currently in progress and will likely be completed over the next 15 to 18 months. It is anticipated that having an explosive factory and detonator in Rourkela will enhance the company's profits by bringing locational, logistical, and cost synergies to its operations.

PSU Coal India Limited recently placed an order with GOCL Corporation Ltd. For the next two years, Coal India will supply bulk explosives to the state-owned enterprise at a cost of Rs 766 crore.

The shares of GOCL Corporation reached a 52-week-high of Rs 622.95 on (20/10/2023) and a 52-week-low of Rs 255.70 on (01/11/2022). The stock has given a multibagger return of 111.88% in 1 year and on a YTD basis it has gained 53.78% so far in 2023.