This Small-cap gem shines; Bags whopping Rs 29,29,88,808 order from HPCL, Previous deal revised to Rs 95.27 crore; next potential multibagger?

This small-cap has truly excelled, delivering a multibagger returns of 266.38 per cent over the last three years and an impressive 190.18 per cent gain over the five-year period.

On November 28, 2023, Aarvi Encon Ltd was awarded a work contract worth Rs. 43,77,99,874/- for recruitment services and the supply of temporary staff. The project duration spans from January 1, 2024, to December 31, 2024, and the client is a prominent multinational engineering company. 
On December 1, the company received a revised work contract from a leading EPC company for manpower outsourcing services. The revised contract includes an increase in the order value from AED 27 million to 42 million, equivalent to Rs. 61.25 crore to Rs. 95.27 crore (approximately), and an extension of the validity period from July 2023 to July 2025.

On December 1, 2023, AEL received a Letter of Intent worth Rs. 29,29,88,808/- (including GST) from Hindustan Petroleum Corporation Limited (HPCL) for hiring field engineers for various pipeline locations. The project duration is two years.

The company is in a strong financial position with almost no debt and a healthy dividend payout of 22.0 per cent. The company has also been experiencing strong sales growth, with a median sales growth of 16.8 per cent over the past 10 years. Promoter confidence in Aarvi Encon Ltd. has strengthened as their holdings in the company have increased marginally from 73.47 per cent to 73.51 per cent in the September 2023 quarter.

Over the past week, Aarvi Encon has demonstrated robust resilience with an impressive 23.78%per cent increase in its price. Looking at the one-month performance, Aarvi Encon continues to shine with an 11.87 per cent uptick. For long-term, Aarvi Encon has truly excelled, delivering a multibagger returns of 266.38 per cent over the last three years and an impressive 190.18 per cent gain over the five-year period. The one-year figure displayed a 21.76 per cent dip.

About Company
Aarvi Encon Ltd., incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 216.66 Crore) operating in Services sector.

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