Multibagger Railway Engineering Stock Jumps 23.9 Per Cent In 4 Trading Sessions; Board Announced 10:1 Stock Split & Script Trades Near 200-DMA
The stock gave multibagger returns of 1,370 per cent in 3 years whereas BSE Small-Cap Index is up by 94 per cent.
On Thursday, shares of K&R Rail Engineering jumped 4.94 per cent to Rs 451 per share from its previous closing of Rs 429.75 per share. The stock’s 52-week high is Rs 800 and its 52-week low is Rs 303.55. The stock has experienced a significant uptrend, gaining 23.9 per cent in the last 4 trading sessions. It is currently trading above its crucial 50-day moving average (DMA) of 385.66 and is approaching its 200-day DMA of 483.35, as indicated in the chart below.
K&R Rail Engineering Ltd is engaged in carrying on the business of laying private railway sidings on a turnkey basis. The company has a market cap of Rs 1,255 crore and has delivered good profit growth of 1312 per cent CAGR over the last 3 years
K&R Rail Engineering Ltd informed that the Board of Directors has approved and passed the following resolutions by circulation and allotment of 96,00,000 equity shares of face value of Rs 10 each to as fully paid-up under conversion of 96,00,000 of 7 per cent Optionally Convertible Redeemable Preference shares of Rs 10 each aggregating to Rs 960,00,000 to the Promoter and Promoters group.
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Additionally, K&R Rail Engineering Limited secured a work order from Fomento Resources Private Limited, based in Panaji, Goa, for a project involving the design, consultancy, and railway approvals (Phase I) followed by the execution on an EPC basis (Phase II) of a railway siding facility at Kaley Station in Hubballi Division, South Western Railway. This domestic order, valued at Rs 110 crore, mandates project completion within 18 months. The project scope includes comprehensive railway siding infrastructure development.
Furthermore, the Board of Directors of the company announced the stock split in the ratio 10:1 i.e., sub-division/stock split of existing 1 equity share of face value of Rs 10 each fully paid up into 10 equity shares of Re 1 each fully paid up. The record date for the sub-division of equity shares will be intimated in due course
According to Quarterly Results, the company reported net sales of Rs 161.17 crore and a net profit of Rs 4.94 crore in Q2FY25 compared to net sales of Rs 142.23 crore and a net profit of Rs 3.18 crore in Q1FY25. In its annual results, the net sales increased by 70 per cent to Rs 662.41 crore and net profit increased by 24 per cent to Rs 7.79 crore in FY24 compared to FY23.
The stock gave multibagger returns of 1,370 per cent in 3 years whereas BSE Small-Cap Index is up by 94 per cent. Investors should keep an eye on this small-cap stock in the upcoming sessions.
Disclaimer: The article is for informational purposes only and not investment advice.