Goodluck India Ltd._29.07.2025
1. Company has vintage of 3-4 decades with promoters from extremely strong background and professional management.
2. Goodluck India Ltd is an engineering conglomerate engaged in the business of manufacturing and selling engineering products such as sheets, pipes, engineering structures, fabricated structures, forgings, and automobile tubes.
3. Significant capex (ongoing as well as recently commissioned) at consolidated level. New plant (hydraulic tubes unit in Bulandshahr, UP with 50,000 MT capacity) inaugurated in Jan 2025.
4. Company also strategically focussing Defence and Aerospace (subsidiary, Goodluck Defence and Aerospace Ltd.) and expected to begin commercial production within this calendar year. This segment will add to margin growth in coming years.
5. Term debt is not significantly high against the fixed assets at consolidated level with debt to equity < 1. With new capex becoming operational, debt metrics are further likely to improve.
6. At current valuations and with operating leverage and defence play in coming years, stock looks attractive.
7. The stock has given good June 2025 quarter results, promoters increasing their stake to 56.44%
8. Overall, company is a strong PE rerating candidate particularly with management remaining confident on timely capex completion and positive outlook on their defence set up. Stock is up more than 10% today and looks good on charts as well.
Recommended for buy with a first target Rs. 2000 in 9 months’ time.
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We do not hold this stock currently.