Shares of this multibagger infra stock under the ‘small-cap’ category jumped up to 2.50 percent in Friday’s trading session after the company executed a concession agreement with the Public Works Department, Government of Goa worth Rs 270.07 crores.
With a market capitalization of Rs 6,752.21 crores, the stocks of Dilip Buildcon Limited opened their trading hour on Friday at Rs 472.45 and gained up to 2.40 percent during the session witnessing an intra-day high of Rs 476.95 apiece.
Such a surge in the company’s share price was observed after the company, in a recent exchange filing, intimated that “Zuari Observatory Towers Limited”, a wholly-owned subsidiary of the company, executed a concession agreement with the ‘Public Works Department’ (PWD), Government of Goa.
The abovementioned order pertains to the construction of observatory towers and viewing galleries including decorative lighting, approaches, and parking for the new ‘Zuari Bridge’ on Panjim- Mangalore Section. The estimated project cost is Rs 270.07 crores and the same is to be completed within 60 Months.
During the recent financial quarters, the company’s prime indicators of business such as operating revenues as well as net profits showed positive movements. The former rose marginally from Rs 2,848 crores during Q2FY24 to Rs 2,876 crores during Q3FY24 and the latter, keeping the timeframe the same, rose from Rs 73 crores to Rs 112 crores.
Keeping a purview of one year, the company’s stock delivered multibagger returns of 135 percent to its stakeholders, i.e., if someone invested Rs 1 lakh into the stock a year ago, it would have converted to Rs 2.35 lakhs.
The latest shareholding data of the company portray the company’s Promoters holding a 70.15 percent stake, and the Foreign Institutional Investors (FIIs), recently increasing their stake, currently hold a 2.89 percent stake in the company.
Dilip Buildcon Limited is an India-based company operating in the road construction business. The company develops infrastructure facilities on an engineering, procurement, and construction (EPC) basis and takes contracts from the government, special-purpose vehicles, and many other parties.
Written by Amit Madnani
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