Synopsis :- A micro-cap rubber products manufacturer hit a 5% upper circuit after receiving a ₹1.2 crore order to supply rubber gaskets for railway coaches, marking its first contract with a major government engineering company.
A micro-cap company that is in the business of manufacturing, producing, and distributing various types of reclaimed rubber, rubber products has come into the spotlight after securing a significant new order from Bharat Earth Movers Limited.
With the market capitalization of Rs. 234.66 crore, the shares of Gayatri Rubbers and Chemicals Limited were trading at Rs. 408.95 hitting an upper circuit of 5 percent from its previous day’s close price of Rs. 389.50 per equity share, however later the stock saw decline amid the broader market correction.
What’s the News?
Gayatri Rubbers and Chemicals Limited has secured a Rs. 1.2 crore purchase order from Bharat Earth Movers Limited (BEML) for the supply of rubber gaskets used in railway passenger coaches for Indian Railways. The order will be completed within 90 days and will be executed in up to three instalments, as per the contract terms.
This marks the company’s first order from BEML, strengthening its presence in the railway components segment. The company manufactures specialized rubber products across industrial, architectural, automotive, and railway sectors, with its Faridabad plant currently operating at around 60 percent capacity utilization.
Management Commentary
According to Shilp Chotai, Managing Director of Gayatri Rubbers and Chemicals Limited, the order from Bharat Earth Movers Limited (BEML) has enabled the company to obtain a vendor code, opening opportunities to supply products to both railway and defence segments associated with BEML. He stated that becoming part of BEML’s supply chain enhances the company’s credibility, access to long-term government contracts, and participation in transparent e-procurement processes.
He further highlighted that this milestone strengthens the company’s position as a critical infrastructure partner, supporting long-term revenue growth and enabling GRCL to expand its presence in heavy engineering and specialized rubber solutions for infrastructure projects.
About the Company & Financial
Gayatri Rubbers and Chemicals Limited, incorporated in 2022, is engaged in the manufacturing and trading of rubber products, including reclaimed rubber, rubber chemicals, rubber scrap, and other rubber-based by-products for commercial and industrial use. The company has also diversified into the smart meter ecosystem, manufacturing smart meters, RMC switch gears, and SMC enclosures.
A return on equity (ROE) of about 22.4 percent, a return on capital employed (ROCE) of about 31.9 percent and debt to equity ratio at 0.39 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 55.7x higher as compared to its industry P/E 18.2x.
Gayatri Rubbers and Chemicals Limited reported Rs. 17.31 crore in revenue for the H1 FY26, a 26.91 percent increase over the Rs. 13.64 crore for the same period in FY25. It decreased by 5.25 percent as compared to Rs. 18.27 crore in H2 FY25.
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