Shares of this Penny stock hit the 20 percent upper circuit after the company received a work order to construct and develop residential units in Ahmedabad worth Rs 101.64 crores. In the last month, the company’s stock has gained close to 28 percent.
With a market capitalization of Rs 263.51 crores, the stocks of Nila Infrastructures Limited started their trading session on Wednesday at Rs 6.70, marked as the 20 percent upper circuit price band for the company.
After some fall to the same, the stock is back at the previous range and, currently, is locked in the 20 percent upper circuit at the same price.
Such sharp movements in the company’s share prices were observed today after the entity, through a regulatory filing with the Bombay Stock Exchange (BSE) dated 5th September 2023, intimated regarding the receipt of a ‘Slum Redevelopment Project’.
Shree Infracon Private Limited (SIPL), the awarding company, has provided Nila Infrastructures with an order to construct and develop 1,694 Residential Units at Wadaj, Ahmedabad. The aggregate value of the project is Rs 101.64 crores. The time period for the execution of the mentioned Project is decided to be 18 months.
Digging into the financials reported by the company, the basic business parameters such as the operating revenues have shifted up from Rs 83 crores during FY21-22 to Rs 115 crores during FY22-23. In addition, the company’s after-tax profits have stayed uniform at a level of about a crore rupees.
According to the latest shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 61.9 percent stake, and the Foreign Institutional Investors (FIIs) hold a 2.82 percent stake in the company.
Nila Infrastructures Limited is a company based in India that is involved in the business of constructing as well as developing Real Estate and Infrastructure Projects. It undertakes EPC, i.e., engineering, procurement, and construction and turnkey projects pertaining to the Housing Schemes of the Government authorities.
Investments in penny stocks are subject to various risks keeping in mind their extremely high P/E numbers, market capitalization levels, frequency of trading, and many other aspects. Hence, it is recommended to advise your financial consultant before taking an entry into such stocks.
Written by Amit Madnani
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