Multibagger smallcap stock hits 52-week as it is awarded Rs 120.69 crore in incentives, could this be a game-changer?

With a stellar debut and a nearly 144 per cent return in the last year, this small-cap stock has been on everyone's mind.

Small-Cap stocks are often considered high risk but high reward investments and one stock that has been proving this theory right is making waves in the market. With a stellar debut and a nearly 144 per cent return in the last year, this small-cap stock has been on everyone's mind. On Wednesday, while the market was experiencing profit booking, the stock  of Hariom Pipe Industries outperformed the frontline indices by jumping over 5 per cent and logging a fresh 52-week high. 

So what's driving this stock's success? The company recently announced that it has been granted customized incentives of Rs 120.69 crore by the Industries & Commerce (IP & INF) Department under various heads for the establishment of GP – Galvanized Steel pipes/CR- Cold Rolled/MS-Mild Steel Pipe unit at Sheriguda Village, Mahabubnagar District in Telangana State. These incentives include 75 per cent net SGST for 7 years, power cost reimbursement at Rs. 2.00 per unit for 5 years, interest subsidy at 3 per cent for five years and all other incentives as per T-IDEA. 

Amidst a significant moment for the business, it was granted incentives following their recent report of achieving a net profit worth Rs 10 crore during the quarter concluded on December 31, 2022. The newfound impetus is likely to propel the stock towards further expansion. As this nascent stock surges ahead in the market, investors and traders alike should remain watchful of its progress.