Shares of this multibagger penny stock hit the 5 percent upper circuit in Friday’s trading session after the company successfully secured an order pertaining to Surat Metro Rail for a sum of Rs 62.1 crores.
With a market capitalization of Rs 75 crores, the stocks of HEC Infra Projects Limited closed on Friday hitting the 5 percent upper circuit at Rs 73.85. In the past month, the company’s stock has gained nearly 15 percent.
Such sharp movements today were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has received an EPC order worth Rs 62.1 crores from Rail Vikas Nigam Limited (RVNL).
The abovementioned order pertains to the supply, erection, testing, commissioning of Rss, earthing, and bonding HVAC & other associate work of the “Surat Metro Rail project”. The period for the execution of the same is decided to be 15 months.
Keeping a purview of six months, the company’s stock has delivered multibagger returns of around 115 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.15 lakhs.
During the recent financial quarters, the company’s business indicators, viz, operating revenues and after-tax profits rose with the former moving up from Rs 13.26 crores during Q1FY23-24 to Rs 15.27 crores during Q2FY23-24, and the latter, during the same period, increasing from Rs 20 lakhs to Rs 64 lakhs.
In addition to the above, the profitability ratios of the company, such as the return on equity (RoE) and the return on capital employed (RoCE), increased during the recent financial years with the former shifting from 1.73 percent during FY21-22 to 2.61 percent during FY22-23 and the latter, keeping the timeframe the same, rose from 6.09 percent to 8.58 percent.
HEC Infra Projects Limited is an Engineering, Procurement and Construction (EPC) Contractor engaged in ‘electro-mechanical’ and ‘instrumentation’ projects. Some of the products in the company’s portfolio include switchyards, underground cables, water pumping stations, fire alarm systems, and others.
Written by Amit Madnani
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