The mining sector has the potential for a multiplier effect on economic growth. As the government focuses on self-reliance, multibagger stock Gujarat Toolroom which recently won a significant order from the country's most valuable listed company Reliance Industries has touched a topline of more than Rs 200 crore. Earlier in November and October last year, Gujarat Toolroom which is into in industrial activities including the development and operation of mines and minerals, had announced to foray into the Dubai market with a focus on precious diamonds, stones, gold bars and the jewellery industry.
The smallcap stock has now informed through an exchange filing that its subsidiary GTL Gems DMCC has reported a turnover of Rs 202 crores. "Leveraging its expertise in trading diamonds and gemstones, alongside capitalizing on the gold mined from its Zambian subsidiary, GTL Gems DMCC continues to solidify its foothold in the lucrative precious metals market," it said.
Recently, Gujarat Toolroom informed exchanges that it has secured a substantial order worth Rs 29 crore from Reliance Industries. The order pertains to construction supplies, it said, adding that the order win will have an impact on the bottom line in the coming quarters.
According to BSE data, the smallcap multibagger stock has delivered a return of more than 150 per cent in just 6 months and a nearly 400 per cent return in 1 year. The stock currently trades at Rs 47.25 on BSE.
Notably, the gems and jewellery industry is a significant contributor to India's economy. According to a PTI report, rating agency Crisil has predicted that India's diamond polishing industry will likely see a revenue drop by 30-35 per cent to USD 14-15 billion in the current financial year 2023-24 on poor demand from the US, EU and China. Notably, the three geographies account for 75 per cent of India's polished diamond exports.
