GSM Foils Ltd. shares experienced a significant decline of 20% today, closing at ₹192 on the NSE at its lower circuit level, despite a relatively stable broader market. The stock opened at ₹260.35, touched an intraday low of ₹225, and recorded a trading volume of 3,00,500 shares. With a market capitalisation of ₹380.22 crore, the company operates within the FMCG sector, specifically focusing on the packaging industry. The stock's performance reflects the volatility and challenges faced by micro cap stocks in the current market environment, with the latest decline overshadowing the company's strong quarterly results.
GSM Foils Ltd., an SME-listed manufacturer based in Maharashtra's Palghar district, informed the National Stock Exchange on Friday that its Managing Director, Mohansingh Parmar, survived a firing incident on July 26 at the company's premises in Diamond Industrial Estate, Vasai East. According to the exchange filing dated July 31, Parmar, 46, was struck in the shoulder by two motorcycle-borne assailants who opened fire. The incident took place in the Naikpada area in Vasai-Virar, located near Mumbai. A second shot failed after the pistol jammed, after which the attacker allegedly hit Parmar with the weapon before fleeing. The company reported that his health condition is reported to be stable and improving and received prompt medical attention following the incident.
The disclosure took an unexpected turn when police arrested seven people, including co-chairman Sagar Bhanushali, in connection with the shooting incident. As reported by NDTV, Bhanushali is accused of plotting the attack on Parmar to escape a ₹32 crore financial liability and gain complete control of GSM Foils. Investigators alleged that Bhanushali had suffered losses of around ₹55 crore in the stock market and had accumulated significant debts, leading him to pressure Parmar to buy his stake for around ₹32 crore. Instead of settling the liability, he allegedly hatched a plan to kill Parmar, with investigators claiming contract killers were hired for ₹40 lakh, of which ₹5 lakh was allegedly paid in advance. The company said it is extending full cooperation to the investigating authorities.
Seeking to reassure investors, GSM Foils said its senior management has taken the necessary steps to ensure business continuity and that manufacturing operations remain unaffected despite the developments. According to the company, both its manufacturing facilities in Vasai and Ahmedabad continue to function normally. The senior management team has taken the necessary steps to ensure continuity of the company's operations, with all facilities maintaining normal operations. GSM Foils said it is closely monitoring the situation and will make further disclosures, if required, in accordance with applicable laws and regulations.
Despite the dramatic events, GSM Foils reported exceptional financial results for the June quarter. The company's net profit rose 98.96% year-on-year to ₹7.62 crore from ₹3.83 crore, while revenue climbed 86.33% to ₹96.89 crore from ₹52 crore. Profit before tax increased 89% to ₹10.20 crore, with the operating margin improving to 11.88% from 11.19%. GSM Foils manufactures blister foils and aluminium pharmaceutical foils for the healthcare industry, with the strong performance overshadowed by the recent developments.
