Shares of this penny stock under Rs 10 hit the 5 percent upper circuit after receiving an order from Oil and Natural Gas Corporation Limited (ONGC).
With a market capitalization of Rs 172 crores, the stocks of Madhav Infra Projects Limited are locked in the 5 percent upper circuit on Friday at a price of Rs 6.39. In the last one-month period, the company’s scrip gained close to 16 percent from Rs 5.51 to the current price level.
Such movements in the stock prices were observed after the company, through a regulatory filing with the exchange dated 4th August 2023, received a Letter of Acceptance (LoA) for an EPC contract from ONGC – Ankleshwar worth ₹118 crores.
The order is pertaining to the designing, engineering, procurement, supply, commissioning, operations, and maintenance of 15 Megawatts (MW) AC solar photovoltaic grid-connected power plant.
The consolidated results of the company, in the past couple of financial years, portray an increase in the operating revenues as well as net profits assuring a smooth flow of business.
The operating revenues rose from Rs 460 crores during FY21-22 to Rs 512 crores during FY22-23, and, the net profits, during the same time period went up six-fold from Rs 6 crores to Rs 36 crores.
Profitability ratios have shown a drastic increase in numbers with the return on equity (RoE) increasing from 6.40 percent during FY21-22 to 21.68 percent during FY22-23, and, the return on capital employed (RoCE) rising from 11.51 percent to 22.12 percent.
Madhav Infra Projects Limited is a Power Generation company based in India that is involved in the business of Engineering, Procurement & Construction (EPC) as well as Civil contracts. The company also develops, constructs, and operates various infrastructure projects.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
