Penny stock engaged in the development, construction, operation, and maintenance of infrastructure projects like highways, bridges roads, and many others hit a 2 percent upper circuit upon receiving a work order worth Rs. 90.34 Crores from NTPC-SAIL Power Company Limited.
With a market capitalization of Rs. 296 Crores, the shares of Madhav Infra Projects Limited hit a 2 percent upper circuit at Rs. 10.98 per equity share from its previous day’s close price of Rs. 10.77. It has delivered a return of 133 percent in a year.
Madhav Infra Projects Limited has received a Letter of Acceptance from NTPC-SAIL Power Company Limited for a consideration of Rs. 90.34 Crores for the Design, Engineering, Procurement, Construction, Installation, Commissioning, Operation and Maintenance of 15 MW Floating Solar PV Project at Maroda Reservoir-I, Of NSPCL in Bhilai, Chhattisgarh and the said work order is to be executed in 12 months.
Madhav Infra Projects Limited is engaged in the development, construction, operation, and maintenance of infrastructure projects like highways, bridges roads, and many others. It is also engaged in the business of power generation business, including solar and hydro.
Its revenue from operations decreased by 10.20 percent from Rs. 513 Crores in FY23 to Rs. 460 Crores in FY24, accompanied by profits of Rs. 36 Crores to Rs. 23 Crores.
It has reported a return on equity(ROE) of 12.2 percent, a return on capital employed (ROCE) of 13.3 percent, and a debt-to-equity ratio of 0.81.
Note: Due to the illiquidity in penny stocks, the stock can hit its assigned circuit levels with just a minor increase in the volume of trades. Even if the stock prices are within the usual buying range for the investors and offer enormous potential profits, penny stocks are quite dangerous for retail investors.
Written by: Bharath K.S
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