10:1 stock split & 27,600 per cent multibagger returns: Board of this Civil construction company approved the allotment of 2,75,000 equity shares on conversion of warrants!
The stock gave multibagger returns of 210 per cent in just 1 year; 2,500 per cent in 3 years and a whopping 27,600 per cent in 5 years.
Today, shares of Hazoor Multi Projects Ltd gained 2.05 per cent to Rs 412.95 per share from its previous closing of Rs 404.65. The stock has a 52-week high of Rs 454 and its 52-week low is Rs 115.
The fund-raising committee of the Company, in their meeting, approved the allotment of 2,75,000 equity shares to non-promoter/public category investors at a preferential price of Rs 300 per share (including a premium of Rs 290 per share). This allotment was made upon the conversion of 2,75,000 warrants, previously allotted to these investors at Rs 300 per warrant. The investors paid 25 per cent of the issue price upfront and were required to pay the remaining 75 per cent (Rs. 225 per warrant) within 18 months of the allotment date. Following this conversion and allotment, the company's issued and paid-up capital increased to Rs. 19,56,43,520. The new equity shares will rank equally with the existing equity shares.
Additionally, the company emerged as the lowest bidder (L-1) for a project awarded by the Maharashtra State Infrastructure Development Corporation (MSIDC). The project involves widening and improving the Paldhi Amalner dondaicha Nandurbar Dhanora to Gujarat State Border Road (SH-6) on an EPC basis. The contract, valued at Rs 273.74 crore plus applicable GST, will be executed domestically for 2.5 years. There are no related party transactions or conflicts of interest involved in this project, which is a significant development for the company.
Furthermore, The Board of Directors of the company announced the stock split in the ratio 10:1 i.e., sub-division of equity shares of Rs 10 face value, 10 equity shares of face value of Re 1 each. The record date for the stock split is yet to be determined. Furthermore, the Board has declared the 1st Interim dividend of Rs 2 per fully paid-up equity share having a face value of Rs 10 each per equity share for the financial year 2024-25. The record date for the dividend is fixed as August 28, 2024.
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About the Company
Hazoor Multi Projects Ltd, founded in 1992, has transitioned from residential construction to focus on infrastructure development. They primarily act as a subcontractor on national highway projects for government agencies like the Maharashtra State Road Development Corporation and the National Highways Authority of India. Additionally, Hazoor Multi Projects has ventured into the EPC (Engineering, Procurement, and Construction) contracting business. The company has a market cap of Rs 751 crore.
Consolidated Results: According to Quarterly Results, the company reported net sales of Rs 70.26 crore and net profit of Rs 9,46 crore in Q1FY25. In its annual results, the company reported net sales of Rs 545 crore and a net profit of Rs 63.77 crore in FY24.
In June 2024, FIIs bought 19,29,785 shares and increased their stake to 19.18 per cent compared to 10.92 per cent in March 2024. The shares of the company have a PE of 11.5x whereas the sectoral PE is 19x with an ROE of 86 per cent & an ROCE of 84 per cent. The stock gave multibagger returns of 210 per cent in just 1 year; 2,500 per cent in 3 years and a whopping 27,600 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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