Penny stock that is into construction and development of Infrastructure projects jumps 4 percent in the day’s trade after it bags orders worth Rs. 142.73 Crores from Gujarat Housing Board.
At the day’s closing the shares of Nila Infrastructure were trading at Rs. 6.10 up 4 percent from its previous day close price and its market capitalization is Rs. 241.85 Crores.
As per the company’s filing, Nila Infrastructure has received orders from Gujarat Housing Board worth Rs. 142.73 Crores for the Construction of 300 High Income Group (HIG) housing units and 18 Shops.
The project awarded to the Company is for the redevelopment work of Integrated Group Housing Facility, the project shall be on PPP(Public private partnership) basis whereby the Company shall be entitled to the amount of realization of additionally constructed 580 housing units and 6 commercial shops as consideration.
The time period allotted for the execution of the project is 28 Months including 4 Months of approval process
The company’s revenue grew 38.13 percent from Rs. 83.32 Crores in FY22 to Rs. 115.09 Crores in FY23, accompanied by profits of Rs. 1.21 Crores in both the years.
It has reported a return on equity (ROE) of 0.91 percent and a return on capital employed(ROCE) of 5.96 percent, it has made decent returns on its equity and capital employed.
Nila Infrastructures is involved in the construction of Affordable Housing Projects, and the development of various infrastructure, it has its presence and operations mostly in Gujarat and Rajasthan.
Note: Due to the illiquidity in penny stocks, the stock can hit its assigned circuit levels with just a minor increase in volume of trades. Even if the stock prices are within the usual buying range for the investors and offer enormous potential profits, penny stocks are quite dangerous for retail investors.
Written by: Bharath K.S
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