Shares of K&R Rail Engineering, a small-cap railway stock, have been on an uptrend. Its shares were locked in a 5% upper circuit on Thursday at ₹ 382.65 apiece on the Bombay Stock Exchange (BSE). The company is engaged in the business of laying private railway sidings on a turnkey basis.
K&R Rail Engineering recently announced that it has completed two projects. The first was a survey for Sagar Cements’ Railway Siding Project for their cement plant at Tadepalli, valued at more than ₹ 100 crores. The second project involved the completion of road and bridge works worth ₹ 61.90 crores for four laning of Suryapet to Khammam of NH-365BB in the state of Telangana under Bharatmala Pariyojna for ESSAR Projects.
Last month, the company announced its result. On a standalone basis, its revenue from operations increased from ₹ 32.04 crores to ₹ 58.87 crores, up 83.73% sequentially. Moreover, its net profit increased by a whopping 219.23% from ₹ 0.52 crores to ₹ 1.66 crores sequentially.
K&R Rail Engineering has given multibagger returns of 484.64% to its shareholders on a year-to-date basis as its share price increased from ₹ 65.45 apiece at the beginning of this year to ₹ 382.65 apiece. If an investor would have invested ₹ 1 lakh in the company’s shares three months ago, the value of their holdings would have been ₹ 5.84 lakhs today!
The company has a market capitalization of ₹ 575 crores. It has an ideal debt-to-equity ratio of 0.31 and a low return on equity of 11.78%. Its promoters hold a 74.88% stake in it, while the rest is held by retail and other investors.
Written by Simran Bafna
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