The shares of this microcap company jumped around 3 percent in Friday’s trading session after entering into a re-development agreement for a residential project. In one year, the stock has delivered more than a 200 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 564 crores, the shares of Meghna Infracon Infrastructure Ltd started Friday’s trading session on a higher note at Rs. 518 compared to its previous close of Rs. 504. During the trading session, the shares hit a high of Rs. 519, gaining around 3 percent and are currently trading at Rs. 513 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had entered into a redevelopment Agreement for a residential project at the premium location of Medel Town, Lokhandwala, Andheri (West), Mumbai admeasuring approximately 35000 square feet, after transferring possession to the original tenant, the said project is expected to generate revenue of Rs. 400 million.
Commenting on this development, Mr. Vikram Jayantilal Lodha, Managing Director said, “This development aligns seamlessly with our commitment by creating iconic developments that offer a superior living experience. We look forward to delivering yet another benchmark project that reflects our commitment to excellence”
Financials:
Looking at the company’s financial performance, the revenue zoomed by around 42 percent from Rs. 10.23 crores in the March quarter to Rs. 14.50 crores during the June quarter. In addition, the net profits magnified by 205 percent from Rs. 58 lakhs to Rs. 1.77 crores during the same period.
Recent Development:
Earlier, the company had launched a new residential project named ‘RIVAAN’ in Goregaon (West), Mumbai. Spanning approximately 1 lakh square feet, this project represents a pivotal advancement for the company as it strives to solidify its position as a premier developer of upscale real estate in Mumbai.
The project introduces an innovative community living concept, offering residents 1 and 2 BHK apartments along with commercial units on the first floor.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 24.03 percent and a return on capital employed (RoCE) of 25.84 percent for the period spanning FY23-24. Further, the net profit margin stood at 6 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 46.92 percent of the stake, the Public holds 52.27 percent of the shares, and the remaining 0.80 percent of the stakes are held by Foreign Institutional Investors (FIIs).
Company Profile:
The company was formerly known as Naysaa Securities Limited and changed its name to Meghna Infracon Infrastructure Limited in May 2024. It provides investment advisory services, and investment-related tools and services in India.
Written By Vaibhav Patil
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