Shares of this microcap company clocked 5 percent upper circuit in Thursday’s trading session after receiving Hydropower Project worth Rs. 1.48 crores. The shares have delivered a multibagger return of 559 percent to its investors in one year. 

With a market capitalization of Rs. 68.4 crores, the shares of DMR Hydroengineering and Infrastructures Ltd started Thursday’s trading session on a higher note at Rs. 180.25 compared to its previous close of Rs. 171.70. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 180.25 apiece. 

Such a bullish movement in the share price was observed after the company in an exchange filing, announced that it had received a work order for detailed design and engineering services of the 14.50 MW Pareng Hydropower Project located in Arunachal Pradesh worth Rs. 1.48 crores. Moreover, the orders are to be executed within 36 months. 

Looking at the company’s financial statements, the revenue zoomed by 49 percent from Rs. 2.11 crores during H2 FY22 to Rs. 3.14 crores in H1FY23. In addition, the net profit magnified by 117 percent from Rs. 28 lakhs to Rs. 61 lakhs during the same period. 

Furthermore, the company intends to increase its international footprint for which it has submitted bids and entered into contracts for providing consultancy services in Lebanon, South Sudan, Afghanistan and Dubai. 

Coming onto the important financial ratios, the return on equity decreased marginally from 13.59 during FY21-22 to 13.38 percent in FY22-23. On a contrasting note, the return on capital employed increased from 16.21 percent to 17.73 percent during the same period. Moreover, the net profit margin decreased from 19.42 percent to 17.69 percent during the same timeframe. 

According to the latest shareholding pattern, the Promoters have a 72.78 percent stake, and the remaining 27.23 percent of shares are with the Retail investors. 

Headquartered in Haryana, DMR Hydroengineering and Infrastructures was incorporated in 2009. The company provides engineering consultancy and due diligence services to hydropower, dams, roads, and railway tunnels. 

Written By Vaibhav Patil 


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