GOCL Corporation Detail
GOCL Corporation is in portfolio of Dilip Kumar Lakhi. He is one of the top investors in India. The company belongs to Mining sector.
As per the Company website it is part of Hinduja Group. The Company has diversified its operations into three divisions as mentioned below.
- Energetics Division
- It is largest exporter of Explosive products from India.
- It is in business of Manufacture, marketing and technical services in industrial explosives , detonators, explosive bonded metal clads and special devices for Defence and Space applications.
- Mining and Infrastructure Contracts division
- It undertakes large scale mining services in coal, iron ore, limestone and bauxite mines.
- It also undertakes contracts in the infrastructure sector such as underground metro railways, elevated highways, industrial structures / buildings.
- Property Development
- The property development is mainly in Bengaluru and Hyderabad cities.
- It mainly developes SEZ and Industrial Parks
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
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GOCL Corporation Stock Performance
The stock performance on long term chart can be divided into two parts. First part is from year 2002 to year 2008 and second part is after global crisis.The stock gave around 30 times return between years 2002 to 2008. So investors made fortunes in this counter.
Global crisis hurt it bad and it started trading just above 2003 levels. Since then it has given slow and steady return with major movement coming after year 2016. It has corrected from the top in recent times as well. The stock never the less has given consistent positive returns to investors. It is also consistent dividend payer as well.
GOCL Corporation My Opinion
GOCL Corporation is an Mining Company. It operates in three business areas. The major one is explosives business. It is one of the largest exporter of explosives from India. Major product in this category is Detonators.
Along with this core business it has also undertaken business of Contractual Mining an d Commercial space development. This commercial space development business is not related to core business.
I personally dislike Companies operating in all together different niche and are small in size. I would have preferred if Company operates in Detonators or Explosives segments.It could have expanded its product portfolio in this segment only. For additional revenue streams it ventured into Real Estate business area.
Detonators are mainly used in Mining. This has limited growth potential in near future. This may be one reason Company opting for other business verticals. I will not track this Company due to limited growth potential in the sector.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.