Rs 13,50,00,000 order book & promoters decrease stake: This multibagger consulting services company reports a 228 per cent jump in net profit!

The stock gave multibagger returns of 100 per cent in just 6 months and a whopping 230 per cent in just 1 year.

On Tuesday, shares of DMR Hydroengineering & Infrastructures Ltd hit a 5 per cent upper circuit to Rs 141.20 per share from its previous closing of Rs 134.50. The stock’s 52-week high is Rs 211.20 and its 52-week low is Rs 34.10.

DMR is a one-stop shop for engineering consultancy in infrastructure sectors like hydropower, dams, renewables, and tunnels. They focus on crafting innovative solutions for clients across the industry, from EPC agencies and government PSUs to independent power producers and other consultants. Their extensive service list covers everything from strategic planning and feasibility studies to detailed design, construction oversight, and project commissioning, ensuring successful project lifecycles from concept to completion.

According to Consolidated Half-yearly Results: The net sales increased by 83.9 per cent to Rs 3.88 crore, the operating profit increased by 180.5 per cent to Rs 1.15 crore and the net profit increased by 228.6 per cent to Rs 0.92 crore in H2FY24 compared to H2FY23.

According to Annual Results: The net sales increased by 60.3 per cent to Rs 7.02 crore, the operating profit increased by 69.7 per cent to Rs 2.02 crore and the net profit increased by 99 per cent to Rs 1.53 crore in FY24 compared to FY23.

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The company's performance for the financial year FY23-24 was strong, with an order book of Rs 13.5 crore as of March 31, 2024. The company saw significant growth in its customer base, adding 19 new customers during the year, some of which are major players in the industry. This resulted in 38 new assignments, including 3 international and 35 national projects, across various sectors like pumped storage, renewable energy, dams, tunnels, and hydropower (both small and large).

To support this growth, the company significantly expanded its engineering team, hiring 5 senior vice presidents (department heads), 15 entry-to-mid-level engineers, and 5 CAD engineers, bringing the total engineering team size to 51. The business development team was also expanded to 5 professionals. Furthermore, the company was empanelled as a lender engineer for Indian Renewable Energy Development Ltd (IREDA) and signed MoUs with other engineering consulting firms to form joint ventures or partnerships, strengthening its position in the industry.

DMR Hydroengineering & Infrastructures Ltd has a market cap of Rs 53.57 crore. The stock gave multibagger returns of 100 per cent in just 6 months and a whopping 230 per cent in just 1 year. Investors should keep an eye on this micro-cap stock.

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