Shares of this microcap company clocked 5 percent in Monday’s trading session after receiving a Letter of Intent (LOI) for a Store Area Land Development Project from Apar Industries Limited.
With a market capitalization of Rs. 30.2 crores, the shares of Shashijit Infraprojects Ltd started Monday’s trading session on a higher note at Rs. 5.59 compared to its previous close of Rs. 5.57. During the trading session, the shares clocked 5 percent upper circuit at Rs. 5.84 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had been awarded a Letter of Intent (LOI) for a Store Area Land Development Project without steel and cement from Apar Industries Limited for approximately Rs. 29 million (2.9 crores).
Coming onto the company’s financial statements, the revenue increased marginally by around 3 percent from Rs. 6.18 crores during the September quarter to Rs. 6.33 crores in the December quarter. On the other hand, the net profits declined by 27 percent from Rs. 11 lakhs to Rs. 8 lakhs during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 1.16 percent during FY 21-22 to 3.89 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 4.30 percent to 7.53 percent during the same timeframe. Furthermore, the net profit margin increased from 0.46 percent during FY21-22 to 1.27 percent during FY22-23.
According to the latest shareholding pattern, the Promoters have 51.16 percent of stakes and the remaining 48.84 percent are with the Retail Investors.
Headquartered in Gujarat, Shashijit Infraprojects was incorporated in 2007. The company is involved in the construction of industrial infrastructure facilities, driveways, public utilities, powerhouse buildings, factories, and other immovable properties.
Written By Vaibhav Patil
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