The Ashapuri Gold Ornament share price saw a sharp increase, locking at the 5% upper circuit level, following the announcement of a significant supply agreement. The company shared details of this agreement, explaining its role in providing gold jewellery, which appears to have caught the attention of investors looking to invest in stocks within the jewellery sector.
Share price performance
On Tuesday, 12 November 2024, Ashapuri Gold Ornament's share price was locked at the 5% upper circuit, reaching ₹8.61 per share in early trading hours. This increase followed the company's announcement regarding the agreement with a prominent player in the jewellery industry. The rise in share price has drawn considerable interest from those who invest in stocks as it signals a potential growth opportunity within the 'B' group stock segment.
Details of the agreement with a major jewellery brand
Ashapuri Gold Ornament stated in an exchange filing that it has agreed to supply gold jewellery to one of the leading brands in the industry. The agreement specifies that Ashapuri Gold Ornament will handle the supply of gold jewellery as per purchase orders received from the jewellery company over the contract period, spanning from 1 August 2024 to 31 July 2026.
There is no exclusive contract amount disclosed in this agreement. Still, the terms indicate an ongoing supply relationship that will enable Ashapuri Gold Ornament to meet the demands of this prominent jewellery brand.
Production capabilities and operational expansion
To support its expanding operations and fulfil contracts such as the new agreement with the prominent jewellery brand, Ashapuri Gold Ornament operates a production facility located in Navrangpura, Ahmedabad. This unit covers approximately 2,194 square feet and is equipped to manage a range of manufacturing tasks, both through in-house design and partnerships with third-party designers.
Production activities take place primarily in Ahmedabad and Rajkot, allowing the company to scale as demand grows. For those aiming to invest in stocks within the jewellery manufacturing sector, such operational capacity may signal the potential for increased output and revenue.
Recent financial highlights and stock performance
The company's stock performance on the Bombay Stock Exchange (BSE) has shown a market capitalisation of approximately ₹286.98 crore. This recent price movement, alongside the new agreement announcement, has contributed to renewed investor interest in Ashapuri Gold Ornament, particularly among those inclined to invest in stocks with growth potential in niche sectors.
As of 9:36 AM, the shares of Ashapuri Gold Ornament remained locked in the 5% upper circuit, indicating strong buying interest.
In the broader market, the BSE Sensex was trading slightly higher at 79,555.08 points, up by 0.07%. Ashapuri Gold Ornament's positive price movement stands out within the context of this modest market trend, potentially indicating investor confidence following the announcement of the new supply agreement.
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