Is GOCL Corp emerging as a hot stock in small cap?

Gulf Oil Corporation Limited commonly abbreviated as (GOCL Corporation) on Friday, June 17 closed at Rs 173.45. The shares on June 17 gained as much as 8.54 per cent. The shares in the last 1 year have gained as much as 18 per cent, but the interesting fact is that the shares in the last 3 months have surged by 28 per cent which makes it one of the hot stocks in the small cap segment. The big giant competitors apart from Petronet LNG were marginally down. Castrol India and Tube water were down by 0.29 and 0.91 respectively on Friday, June 17.

The BSE small cap index on June 17, closed at 11435.16, and gained 0.29 per cent. Twenty stocks featuring in the index were in green, out of which four stocks registered a double digit surge in terms of per cent in their share prices. The index in the last three months has surged over 12 per cent.

The shares on an intraday basis have surged on the news that IDL Explosives Limited (IDLEL), the wholly-owned subsidiary of GOCL Corporation bagged an order worth Rs 127.71 crore from Singareni Collieries Company Limited (SCCL) on Friday, June 17. The company will supply bulk explosives, cartridge explosives, nonel and detonators for use in blasting at all open cast projects and underground coal mines for a period of 2 years from 2016 to 2018.

On financial front, GOCL Corporation’s consolidated revenue stands at Rs 537 crore and net profit at Rs 26.94 crore in FY16. The company has earned 80.17 per cent from explosive segment, 2.69 per cent from property development segment, 3.59 per cent from consulting segment, remaining 86.45 per cent from others segment as of FY16.

Gulf Oil Corporation Limited is a part of the Hinduja Group and has diversified interests. The current business activities of the company are in the areas of Lubricants, Industrial Explosives, Mining & Infrastructure Services, and Property Development.