Penny stock under ₹2: GG Engineering shares hit 20% upper circuit after Q2 results 2024 | Stock Market News
Source: Live Mint
Penny stock: Snapping their five-day losing streak, shares of GG Engineering were locked at the 20% upper circuit limit at ₹1.90 in early morning trade today, October 24, following the company’s positive financial results for the September quarter.
For Q2 FY25, GG Engineering reported a net profit of ₹11 crore, a significant improvement compared to a net profit of ₹1 crore in the same period last year and a net loss of ₹2 crore in the preceding June quarter. This net profit exceeds the combined net profit of ₹7 crore for FY24.
Revenue from operations surged to ₹106 crore in Q2FY25, marking a 45.2% year-on-year improvement from ₹73 crore in Q2 FY24 and up from ₹70 crore in the first quarter of the current fiscal year. The EBITDA reached ₹13 crore, compared to just ₹1 crore in the same period last year.
The company supplies industrial engines for various applications, marine engines, and spare parts for diesel generator sets to both local and international markets. The global diesel generator market was valued at $20.8 billion in 2019 and is projected to reach $37.1 billion by 2027, reflecting a CAGR of 9.8% from 2020 to 2027, as per the recent estimates.
Technological advancements in diesel generators, along with rising energy demand from various end-use industries, are expected to create lucrative growth opportunities for key players, enabling them to strengthen their market positions in the coming years.
Stock up 150% since April 2023
Since April 2023, the company’s shares have been in recovery mode, rising from ₹0.76 per share to the current level of ₹1.90, resulting in a remarkable gain of 150%. Notably, the stock surged by 84% in November 2023 alone.
Despite this recovery, the stock is still trading approximately 80% below its all-time high of ₹9.33 per share, which was reached in July 2021.
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