In early morning trading today, October 24, shares of GG Engineering were trapped in the 20% upper circuit limit at ₹1.90 after the company reported strong financial results for the September quarter (Q2) of FY25. Today’s surge ended the stock’s five-day losing streak.
GG Engineering recorded a net profit of ₹11 crore for the second quarter of FY25, which is a considerable improvement over the net profit of ₹1 crore for the same period the previous year and a net loss of ₹2 crore for the June quarter prior. This net profit is more than the FY24 combined net profit of ₹7 crore.
Q2FY25 saw a 45.2% year-over-year (YoY) increase in revenue from operations, from ₹70 crore in the first quarter of the current fiscal year to ₹106 crore in Q2FY24. In comparison to merely ₹1 crore during the same period the previous year, the EBITDA increased to ₹13 crore.
The business provides both domestic and foreign markets with industrial engines for a range of uses, marine engines, and diesel generator set spare parts. According to the latest estimates, the global diesel generator market was valued at $20.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 9.8% from 2020 to 2027, reaching $37.1 billion.
In the upcoming years, leading companies should be able to fortify their market positions thanks to the technological improvements in diesel generators and the growing energy demand from a variety of end-use sectors.
The company’s shares have been in recovery mode since April 2023, climbing from Re 0.76 per share to the current high of ₹1.90, representing an impressive 150% return. Notably, just in November 2023, the stock rose 84%.
The stock is still trading almost 80% below its peak of ₹9.33 per share, which it reached in July 2021, even after this comeback.
