Presently, one penny stock, Gujarat Toolroom Ltd, is in news because this stock has increased the wealth of investors many times. Gujarat Toolroom is a segment of plastic manufactures that produce moulds for pharmaceutical, food and beverage, writing instrument, caps and closures, and oral hygiene products. The stock of Gujarat Toolroom Ltd has given 11577% return in 5 years, 6834% returns in the 3 years, 411% returns in the one year, this making this stock a multibagger. The investment in the penny stocks is a very risky business but sometimes, this risk provides a great return. But latest report of the company is not good as Total income growth is in negative.
The other bad sign for the stock is negligible holding of the promoters. In the last three years, promotors of the company has reduced their holding by 11% and presently, they hold only 0.37% holding. Now almost all money in this stock is of the people above 99%. So if this stock loses money in the near future, then all the loss will be of the people. Recently, Gujarat Toolroom got an order from the Reliance Industries for the construction supplies. They also bought few mines in an African country and started their business in Dubai too.
In Dec2023 results company has shown positive results with net profit for quarter increasing 3.99 crore a surge of 519% but still I am not convinced about it.
Charts wise this stock is moving sidewise and presently; this stock is overvalued. Thus, there is very high risk associated in investing in this stock. It is better to leave this stock and look for some other good stocks.
Current Price - 57
Future Potential - May Burst anytime.
Risk - Very Very Risky (Stay Away)
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