Penny Stock Alert: THIS Textile Stock Hits Back-To-Back Upper Circuit On Business Update | Do You Own?

Penny Stock Alert: Shares of Gujarat Cotex Limited rallied and hit back-to-back upper circuits over the past two trading sessions after the fabric manufacturer announced plans to expand and diversify its business activities through the establishment of two new business divisions, namely 'Prabhat Oils' and 'Prabhat Infratech'.

Gujarat Cotex shares opened strong on Tuesday, and surged nearly 4.92% to hit an upper circuit of Rs 3.41 per share. The stock had hit an upper circuit of Rs 3.25 per share during Monday's trading session.

Gujarat Cotex Business Update

The textile company is planning to expand and diversify its business activities through the establishment of two new business divisions, ie Prabhat Oils and Prabhat Infratech. The proposed diversification is likely to help the company to broaden its business portfolio, explore new growth opportunities and build additional long-term business avenues.

Under the proposal to establish 'Prabhat Oils' the proposed activities may "include inter alia, trading, processing, refining, job work and other allied activities relating to edible and refined oils." The division is intended to leverage the recognition and goodwill associated with the Prabhat brand and the relevant business experience of the promoter group.

Under the Prabhat Infratech Division, the newly proposed entity would help the company in exploring opportunities in the real estate and infrastructure segment. "The proposed division may undertake and/or participate in residential, commercial and apartment development projects, particularly in and around Surat, while also evaluating opportunities in emerging growth destinations including Dholera Smart City," stated the BSE filing.

Gujarat Cotex Share Price Trend

The stock touched its 52-week high of Rs 13.07 per share on May 8, 2025. The stock dipped to its 52-week low of Rs 2.45 per share on July 29, 2026. The stock has a return on equity of -2.02%. Its share price value has surged 25% in two weeks and around 15% in one month.

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