Penny stock under Rs 10: This micro-cap company receives order worth Rs 101.64 crore from Shree Infracon Pvt Ltd; scrip hit 20 per cent upper circuit!

The stock’s 52-week high is Rs 8.65 and its 52-week low is Rs 4.23 with a spurt in volume by more than 11.13 times on BSE.

On Wednesday, one of the Top Gainers on BSE, shares of Nila Infrastructures Ltd were locked in 20 per cent upper circuit to Rs 6.70 per share with a spurt in volume by more than 11.13 times on BSE. The stock’s 52-week high is Rs 8.65 and its 52-week low is Rs 4.23.

Nila Infrastructures Ltd announced that the company has received a letter of acceptance from Shree Infracon Private Limited. The project given to the company is for the construction and development of residential units by rehabilitating Slums popularly known as ‘Ramapir no Tekro’ at Wadaj - Ahmedabad.

The project has originally been awarded by Ahmedabad Municipal Corporation (AMC) to SIPL under the Slum Rehabilitation and Redevelopment Policy 2013 pursuant to Pradhan Mantri Awas Yojna. SIPL has given the work of construction and development of the project to the company for the construction and development of 1694 residential units which will be completed in 18 months for a total development cost of Rs 101.64 crore. The Defect Liability Period shall be for 10 years for structure liability and building defects.

Earlier, the company received a letter of acceptance from the Gujarat Housing Board. The company has been awarded a project to redevelop an integrated group housing facility. The project will construct 48 affordable housing units for middle-income households at a total development cost of INR 17.94 crore and will be completed within 28 months from LOA including 4 months of the approval process.

Nila Infrastructures Limited incorporated in 1990, is a flagship unit of the Ahmedabad-based Sambhaav Group. The company is involved in the construction of affordable housing projects, and the development of various infrastructures.

Talking about the financials, the company has a market cap of Rs 264 crore. The company reported excellent numbers in its Quarterly Results with net sales increased by 81 per cent to Rs 24.43 crore in Q1FY24 over Q1FY23. The company reported a net profit of Rs 0.23 crore in Q1FY24 compared to a net loss of Rs 0.46 crore in Q1FY23, an increase of 150 per cent.

Investors should keep an eye on this micro-cap penny stock.

Disclaimer: The article is for informational purposes only and not investment advice.