This penny stock jumped 8% within the hour of markets opening on Tuesday after it bagged an order from the Office of Chief Engineer, Public Works Region, Pune. The stock currently trades at Rs. 65.00 versus Rs 64.02 at previous close.
The company has a market cap of Rs. 48 crore and is currently trading 6% away from its 52 week high. The stock is a 3 year multibagger, returning 107% in the last 3 years. Citrine Fund Limited which is an FII holds 1% of the company.
In a filing dated 9th October 2023, Artefact Projects Ltd (“Artefact”) stated that the Company has been awarded the following Project from the Office of Chief Engineer, Public Works Region, Pune: a. NAG-II (60A) – Improvement to Karanja Waghoda Jalalkheda Road SH 323 in km 40/00 to 50/200 in Tah. Karanja Dist. Wardha and Improvement to Hingi Bordharan Dhanoli kajali savali to NH 06 road MDR 58 in km 23/00 to 45/500
And b. NAG-II (60B) – Improvement to Pardi Sarwadi Chincholi Selgaon umari saval ajandoh Kannamwar gram road MDR-06 in km 3/600 to 36/300 in Taluka Karanja Dist. Wardha. 2. The Company’s contracted fees for the above projects awarded is Rs. 55.46 lakh.
The company’s growth has slowed in the previous fiscal year but its profitability in the form of bottom line margins has expanded considerably over the past few years. Artefact Projects’ revenue degrew 23% YoY in FY23 from Rs. 23.6 crore to Rs. 18.2 crore.Net profits during the same period grew 29% YoY from Rs. 4.1 crore to Rs. 5.3 crore, indicating a margin accretion of approx. 1190 bps.
Artefact Projects provides project management services for infra such as highways and airports as well as urban development projects in India and abroad. The company has had stable shareholding over the past few quarters with 39% promoter holding, 60% public holding and rest being held by FII.
Disclaimer: Since penny stocks are generally illiquid, even a small increase in volume of buy orders can lead to the stock hitting its upper circuit. Even though the stock prices come under an average buying range for retail investors and provide huge upsides, penny stocks are prone to huge risks to retail investors. As such, you should consult your financial advisor before taking an entry into such stocks.
Written by Sandeep R
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