The shares of this micro-cap stock engaged in realty operating services and trading in infrastructure materials hit a 20 percent upper circuit after securing orders worth nearly Rs.500 million for civil construction.
Price Variation
In Monday’s trading session, the shares of Croissance Limited hit 20 percent upper circuit reaching Rs.5.41 per share from its previous close of Rs.4.51.
Rationale for the rise
On 16th August 2024, Croissance Limited received a contract to construct premium villas in Nandi Hills, Bengaluru by a domestic entity. The domestic civil construction project valued at Rs.500 million is set to begin this quarter according to the filings.
This contract will strengthen its order book, enhance its reputation as a quality real estate developer, and potentially lead to more such opportunities in the rapidly growing Bengaluru market.
Additionally, this project will significantly boost the company’s revenues and profitability, contributing positively to its financial performance.
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Business Segments
Croissance Limited is involved in various business segments, including real estate development, where it focuses on constructing residential properties such as luxury villas.
Additionally, it has a presence in financial services, engaging in credit portfolio management and stock broking syndication to provide financial solutions to clients. The company is also involved in media-related ventures, although specific details about this segment are less prominent.
Financials
Croissance Limited has experienced a significant decline in financial performance, with both revenue and profit after tax showing substantial decreases.
For the year ended March 2024, the company reported revenue of Rs.0.66 crore, a substantial decrease from Rs.2.6 crore in the previous year. Its profit after tax was Rs.0.07 crore, showing an 85 percent decline from Rs.0.49 crore year-over-year.
Additionally, the company’s Price to Earnings ratio of 742 exceeds its market capitalization of Rs.37.1 crore, indicating financial instability.
Shareholding Pattern
As per the shareholding composition of June2024, the promoters of Croissance Limited hold a 59.75 percent stake, while retail investors hold 40.25 percent stake.
About the company
Croissance Limited is engaged in realty operating services and trading in infrastructure materials. The company specialises in turnkey projects for villas and apartments, offering customised wardrobes, entertainment units, modular kitchens, and built-in furniture. It has completed over 350 projects and introduced more than 60 new designs for over 310 clients.
Written by – Siddesh S Raskar
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