Low PE; High ROE & high ROCE multibagger stock: Board of this civil construction company allots up to 1,62,00,000 warrants to non-promoters!

The stock gave multibagger returns of 285 per cent in just 1 year, 8,270 per cent in 3 years and a whopping 25,000 per cent in 5 years.

The Board of Directors of Hazoor Multi Projects Ltd decided to create, issue and allot up to 1,62,00,000 fully convertible warrants, convertible into an equivalent number of fully paid-up an equity share of the company, having a face value of Rs 10 to the persons belonging to “Non-Promoter, Public Category”, on preferential basis, at an issue price of Rs 300, payable in cash, for the aggregating amount of up to Rs 486,00,00,000, in terms of SEBI (ICDR) Regulations, 2018, subject to all necessary approvals (the preferential issue).

Hazoor Multi Projects Limited has expanded its operations and diversified its portfolio by acquiring 100 per cent ownership of Square Port Shipyard Private Limited, a recently established company in Kolkata specializing in vessel manufacturing and repair. Despite Square Port Shipyard's small size and first-year net loss, Hazoor Multi Projects paid Rs 3,91,50,000 in cash to acquire the company. This strategic move, completed through a Share Purchase Agreement, aims to achieve economies of scale and fuel future growth.

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In a separate development, Hazoor Infra Projects, a subsidiary of Hazoor Multi Projects, secured a significant infrastructure project - the rehabilitation and upgradation of a Maharashtra highway section under the government's NHDP-IV program. This Rs 1,130 crore project will improve regional connectivity and economic activity.

Incorporated in 1992, Hazoor Multi Projects Limited is engaged in the business of Infrastructure and Real Estate. According to the financials, Hazoor Multi Projects has a market cap of over Rs 695 crore with a 5-year CAGR of 200 per cent. The company reported positive numbers in its Quarterly Results and annual results.

The shares of the company have a PE of 12x 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 285 per cent in just 1 year, 8,270 per cent in 3 years and a whopping 25,000 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.