Gandhi Special Tubes Ltd, established in 1959, is a key player in the manufacturing of Seamless and Welded Steel Tubes, Nuts, and the generation of Wind Power. Lately, the stock has been gaining traction among investors, fueled by its upward trajectory and robust fundamentals. Let’s explore whether considering an investment in this stock is a prudent move.
Riding the Wave: Weekly Chart Analysis
A glance at the weekly chart reveals a significant upward trajectory for Gandhi Special Tubes Ltd.
From trading near 254 apiece in December 2020, the stock closed at an impressive 728.95 apiece on December 29, 2023, delivering over 180% returns in just three years. The driving forces behind this remarkable ascent include rising Foreign Institutional Investors (FIIs) interest and the company’s strong fundamentals.
Q2 FY2023-24 Results
Despite a recent dip in revenue and net profits, Gandhi Special Tubes Ltd remains a compelling investment option. In Q2 2023-24, the company’s revenue witnessed a -13.45% decline since the same period last year, while net profits fell by -13.74%. Although net profit margins experienced a -0.33% decrease, standing at 28.43%, the company’s strong fundamentals continue to make it a noteworthy contender in the market.
Key Points to Consider
- Almost Debt-Free: Gandhi Special Tubes Ltd stands out as an almost debt-free entity, a factor that enhances its financial stability and attractiveness to investors.
- Healthy Dividend Payout: The company has consistently maintained a healthy dividend payout of 31.5%, providing investors with a steady income stream.
- Improved Debtor Days: Noteworthy improvements in debtor days, decreasing from 55.1 to 39.0 days, reflect the company’s efficient management of receivables.
- Reduced Working Capital Requirements: Gandhi Special Tubes Ltd has successfully reduced its working capital requirements from 95.1 days to 72.0 days, signaling improved operational efficiency.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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