This penny stock surged 5% on Monday’s morning after it received an order worth Rs. 36.35 from Gujarat Energy Transmission Corporation Limited.
Share prices of HEC Infra opened at Rs. 46.75 and traded 5% higher to reach its intra- day high of Rs. 46.90 per share. The stock returned 25.21% in the last month and 47.28% in the last six months.
On 2 September 2023, the company received a work order worth Rs. 36.65 crore from Gujarat Energy Transmission Corporation Limited. According to the order, HEC is responsible for – Laying, erection, testing and commissioning of 66 KV lC,300 mm2 and lC,630mm2 XLPE cable for PolyAI and AI. Corrugated cable for various lines for the period of 2 years. The order is expected to be completed within 24 months from the date of letter of authorization (LoA).
According to its recent financials, the company made a revenue of Rs. 13.26 crore in Q1FY24 which is 31.8% less than Rs. 19.47 crore in Q4FY23. Its net profit which was Rs. 0.47 crore in Q4FY23 reduced by 57.4% to Rs. 0.2 crore in Q1FY24.
HEC Infra Projects Limited, incorporated in 2005 and headquartered in Ahmedabad, India is an EPC contractor firm. The company takes up big projects, mostly from the government and large businesses. HEC caters to many sectors including chemical, refineries, gas, cement, oil and steel. It also provides engineering and procurement services.
As penny stocks are illiquid, even a small number of orders might cause a circuit limit. Individual investors should do extensive research before buying high-return penny stocks since they lack consistency in performance and hence create a high risk to retail investors.
Written by Bhumika Khandelwal
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