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Amid increased construction activity, multibagger stock achieves milestone with order execution

The construction sector in India has experienced substantial growth in the aftermath of the pandemic, driven by factors like increasing incomes, a housing shortage in major cities, and rapid population growth.

Nitin Kumar Edited By: Nitin Kumar @Niitz1 New Delhi Published on: January 07, 2024 21:47 IST
Construction sector.
Image Source : FREEPIK The building of new concrete houses is going on.

The construction sector began improving after the pandemic and hit its stride in 2023. It has been driven by rising incomes, a severe housing shortage in big cities, and strong population growth. According to government estimates, India, which is the most populous country in the world, had an urban housing shortage of around 19 million crore units in 2022 and that is expected to double by 2030.

The robust growth in construction has significantly contributed to economic growth. Several enterprises have made noteworthy contributions to meeting the demand. Ahmedabad-based Gujarat Toolroom, which is engaged in the general construction of residential buildings, has executed an order worth Rs 550 million, constituting part of the Rs 3 billion order book for the next two quarters.

A multibagger stock, the order book comprises a mix of domestic and international import-export orders. It reflected a net bottom line of Rs 55 million and demonstrated efficient operational capabilities and commitment to delivering excellence in its services by catering to the rising demand by the masses and adding to the overall growth of the economy..

Adding to the positive outlook, significant growth and profitability are anticipated in the coming quarter, led by the execution of existing plans and the imminent commencement of operations in the Zambia mines, which were acquired recently.

Minerals and mineral products are the backbone of most industries, and some form of mining is carried out in every country in the world. The Zambia mines are rich in copper, cobalt, gold, nickel, and more. Notably, critical minerals, including lithium and cobalt, are crucial for technology, manufacturing, and other industries. According to an estimate, each hectare of mines has the potential to yield an annual revenue ranging from USD 15–20 million. 

Listed on the BSE, the small-cap stock has given multibagger returns of more than 125 per cent in three months and 275 per cent in six months. It reported a total income of Rs 156.6 crore in the second quarter of the current financial year 2023-24.

Also read | Economic experts analyse Rs 2.59 lakh crore discrepancy in India's GDP estimates for 2023-24


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