The shares of an infrastructure development company with a market capitalization of Rs 204 crores jumped 18.5 percent in early trade on Wednesday after its subsidiary was awarded an EPC project.
MEP Infrastructure Developers Ltd shares were trading at Rs 11.35 at 12:23 p.m., up 12.38 percent from the previous close price.
According to an exchange filing, Victory Infra LLC, a subsidiary of MEP Infrastructure Developers Limited, has signed a contract to operate, maintain, and manage the Kasumbalesa Dry Port in the Democratic Republic of the Congo. The expected contract price for the Engineering, Procurement, and Construction (EPC) contract is between $115 mln and $130 mln, with a completion date of 24 months.
Yellowstone DRC SARL received another contract to operate, maintain, and manage the Kasumbalesa Dry Port for an expected contract cost of $14 mln to $18 mln per year, with a 5% year-on-year growth.
In one year stock has declined by 32.84 percent ranging from Rs 17.05 to current price.
MEP Infrastructure Developers Ltd is a company that develops, operates, and maintains road infrastructure and Toll Management in India.
According to company financials, revenue increased 400 percent from Rs 2 crore in Q3 to Rs 10 crore in Q4. Similarly, the net loss fell by 49 percent, from Rs 47 crore to Rs 70 crore.
Based on year-on-year financials,Revenue decreased 75 percent from Rs 967 crore in FY 21-22 to Rs 244 crore in FY 22-23. The net loss climbed 1175 percent within the same time period, from Rs 16 crore to Rs 204 crore.
According to the shareholding pattern as of FY 22-23, the promoters own 42.36 percent stake, while retail investors possess 48.50 percent stake.
The company is categorised as a penny stock. We advise individual investors to conduct thorough research before making an investment because high-return penny stocks have volatile performance, are infrequently traded, and simply a small number of trades may result in a circuit limit.
Written by Omkar Chitnis
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