Stock of this iron & steel products company has zoomed 103% in 4 months

Thus far in the calendar year 2023, the stock price of Goodluck India has skyrocketed nearly 130 per cent, as compared to 4.6 per cent rise in the S&P BSE Sensex

Shares of Goodluck India hit a record high of Rs 859, up 4.4 per cent on the BSE in Monday's intraday trade, after the company reported a strong 70.5 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 34.69 crore in the September quarter (Q2FY24).

The company, which specialises in engineered steel products manufacturer catering to automobile, aerospace, oil & gas, T&D, defence, solar and overall infrastructure space, had posted a profit of Rs 20.35 crore in the year ago quarter.

Total income from operations grew 13.7 per cent YoY to Rs 885.99 crore, as against 779.20 crore in the corresponding quarter of previous year. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin improved 202 bps to 8.12 per cent from 6.09 per cent in Q2FY23.

In the past four months, the stock price of Goodluck India has more-than-doubled, zooming 103 per cent. Thus far in the calendar year 2023, it has skyrocketed nearly 130 per cent as compared to 4.6 per cent rise in the S&P BSE Sensex.

Goodluck is a steel processor, converting basic steel to quality engineering products. The company is engaged in manufacturing and exporting a wide range of engineering structure, precision/auto tubes, forging for defence and aerospace, CR Products and GI Pipes. The products are being used worldwide by end-customers like automobile manufacturers, infrastructure, engineering industries, Oil and gas industries, etc.

Earlier this month, Goodluck Defence and Aerospace Private Ltd, a wholly-owned subsidiary of Goodluck India, announced its expansion plans, which include the manufacturing of machine products for the defence and aerospace industry. The board of Goodluck India had also approved a preferential issue valued at Rs 96 crore, according to the company filing on the exchanges.

Goodluck's increasing market share in renewable energy, road safety and infrastructure for railways and highways is propelling business growth across the globe. The company is likely to be a key beneficiary of the government's thrust on infrastructure development and renewable energy, with its diverse product offerings and marquee customer base. In addition, as the company is approved by the Research Design & Standards Organisation, Ministry of Railway, India, it also intends to leverage the company's strength in fabrication and supply of steel bridge girders for railway projects.

Further, the company aims to capitalise on its key strengths in supplying high-quality products to defence & aerospace, automotive, oil & gas and renewable energy sectors to cater to robust domestic demand and the international markets.

Over the next two years, the company's aim is to increase its revenue from tubes to 25-30 per cent to further improve margin profile. The Auto Tube segment will remain its key priority and it will remain focussed on supplying auto tubes of higher diameter and thickness, such as hydraulic tubes, with tremendous potential in domestic and global markets, Goodluck said in its FY23 annual report.