The shares of telecom and infrastructure development companies hit 5% upper circuit of Rs 1,194.50 apiece after the company received a contract for optic fiber cable ducts in Mumbai, Nagpur, and Samruddhi highway.
With a market capitalization of Rs 420.46 crore, the shares of Kore Digital Ltd were trading at Rs 1,194 per share, increasing around 5 percent as compared to the previous closing of Rs 1,137.65 apiece.
According to the company filing, Kore Digital Ltd received a contract for optic fiber cable ducts and other telecom infrastructure in Mumbai, Nagpur, and Samruddhi highway in JV with OSR Teleservices.
Furthermore, the project has a 15-year concession, which can be extended for an additional 10 years. The construction time is two years. A total of six ducts will be placed, three on each carriage. At the present MSRDC (Maharashtra State Road Development Corporation) prices, the income for this project will be over 130 crores per year, with a net profit of more than 1500 crores upon completion.
Moreover, the Samruddhi highway project is significant for Kore Digital Promoters, and management and the firm anticipate that it will assist Kore Digital achieve exponential development by allowing them to obtain orders with larger ticket sizes.
Looking into Kore Digital Ltd’s performance, revenue climbed by 822 percent from Rs 5.85 Crore in Q3FY23 to Rs 53.95 Crore in Q3FY24. During the same duration, net profit climbed by 308 percent from Rs 1.02 crore to Rs 4.16 crore.
The stock has given a multi-bagger return of 102 percent in six months and 494 percent in a year. If an investor invests Rs 1 lakh in the company, it will be worth Rs 5.94 lakh in one Year.
Kore Digital Limited is a Telecommunications Infrastructure Provider that provides high-end communication solutions to business and telecom network operators.
Written by:- Abhishek Singh
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