Multibagger return: Smallcap stock with over 700 pc return to enter UAE market

Image Source : PTI Business stock exchange building

The small-cap equity index is firing on all cylinders. Given the recent run-up, several small-cap stocks have turned out to be multibaggers, resulting in wealth for investors. In the equity market, multibagger stocks are nothing but equity shares that generate higher returns; usually, they multiply in price.

Shares of Gujarat Toolroom are among the biggest gainers from the small-cap space on Dalal Street. According to the BSE website, the small-cap stock has more than doubled investors’ money in just six months, having zoomed 106 per cent. In the past year, the stock has delivered a huge return of more than 700 per cent to investors.

The small-cap firm, which is engaged in industrial activities, has announced an expansion and looks to expand its footprint overseas. According to an exchange filing on BSE, Gujarat Toolroom has announced its foray into Dubai.

“The expansion would focus on precious diamonds, stones, gold bars, and jewelry,” an exchange filing on BSE said.

According to a PTI report, buoyed by government policies and rising economic activity, the industrial sector is poised for rapid growth and is expected to create millions of jobs in the coming years.

Propelled by recent industry reforms, including the government’s Production-Linked Incentive (PLI) scheme, robust production figures, as well as changing consumption patterns, innovative business models such as 3PL (Third-Party Logistics), and surging rural demand, the industrial sector is poised for rapid growth in the coming years, the report by TeamLease Services said.

The increase in demand for industrial products is not only reshaping the economy but also opening up a slew of new job opportunities. Further, shifting economic dynamics such as rising disposable incomes, falling inflation rates, and rising rural demand have sparked a nationwide consumption boom.

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