Gandhi Special in the limelight

Gandhi Special Tubes is engaged in manufacturing and marketing of welded and seamless steel tubes of different sizes and specifications, and cold formed coupling nuts. Its products are supplied to the original equipment manufacturers of the automotive sector, farm equipment manufacturers, construction equipment manufacturers, refrigerator manufacturers and other engineering industries.

The company posted a very good performance for Q3FY17, taking all on the Street by surprise. On a mere 5% (YoY) rise in total income at Rs.22 crore, the company’s net profit boomed 91% at Rs.6 crore. The 3% drop in costs and jump in other income from Rs.46 lakh to Rs.1.50 crore helped the bottomline.

EBITDA was up 24% at Rs.7 crore and margins rose from 25.7% to 30.3%.

A debt free company, its 9MFY17 net profit of Rs.23 crore has already surpassed FY16 net profit of Rs.18 crore.

The stock price soared today to Rs.340, up some 11% and just Rs.10 short of its 52-week high mark of Rs.350.