Shares of this multibagger stock hit the 5 percent upper circuit during the last couple of trading hours after the company announced that it secured an order worth Rs 4,000 crores from an international entity.
With a market capitalization of Rs 1,582 crores, the stocks of K&R Rail Engineering Limited started their trading session on Thursday on a flatter note at a price of Rs 808.95. As the trading hours progressed, the stock price gained traction and closed hitting the 5 percent upper circuit at a price of Rs 822.25 apiece.
Such sharp closing movements in the stock price were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has bagged an order worth Rs 4,000 crores from M/s. Muktinath Darshan Private Limited, an international entity based in Nepal.
Being a contract on an EPC basis, the contract is with regards to the execution of ‘Cable Cars’ for a length of 84.32 Kilometers in Gandaki, province based in Nepal. The time period fixed for the purpose of executing the above order is 48 months.
Year-to-date, the company’s stock has proven to deliver multibagger returns of 1,156 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock during the start of the calendar year, it would have converted to Rs 12.56 lakhs since that period.
During the recent financial quarters, the company reported an increase in the basic business parameters such as the operating revenues as well as after-tax profits.
The operating revenues grew from Rs 154.5 crores during Q4FY22-23 to Rs 161.98 crores during Q1FY23-24, and, the after-tax profits, keeping the timeframe the same, increased from Rs 2.16 crores to Rs 3.38 crores.
According to the latest shareholding pattern data available, the company’s Promoters hold a 61.42 percent stake followed by the Retail Investors who hold the remaining 38.58 percent stake in the company.
K&R Rail Engineering Limited is a company based in India that is involved in the business of laying private Railway Sidings on a turnkey basis. The company offers services in the laying of electrification, track, signaling, and telecommunication in the Railway Industry.
Written by Amit Madnani
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