LIC-backed Marine Company Bagged Order Worth Rs 2,015 Crore; Stock Hits Back-to-Back Upper Circuit for 2 Days, Mukul Agrawal Bought 5,05,000 Shares!

The shares of the company have delivered a return of around 250 per cent to its shareholders in just 1 year only.

This Small-Cap company offers comprehensive dredging services to ports, the Indian Navy, and other maritime organizations throughout India has announced that the company has bagged a significant order.

The Syama Prasad Mookerjee Port Authority (SMPA) has awarded the contract for "Maintenance Dredging in the Hooghly Estuary," primarily focusing on the shipping channel leading to Haldia Dock, to Dredging Corporation of India Limited (DCIL). Valued at Rs 2015.88 crore, this 5-year contract is crucial for ensuring the navigability of the shipping channel, thereby facilitating smooth and efficient maritime operations in the region.

The Hooghly Estuary serves as a vital waterway for maritime trade, and maintaining its depth is essential for the safe passage of vessels to and from the Haldia Dock. DCIL, a leader in the dredging industry, has a proven track record of executing large-scale dredging projects with precision and efficiency. The awarding of this contract to DCIL underscores SMPA's commitment to maintaining high standards of maritime infrastructure and ensuring the seamless flow of trade through the Hooghly Estuary.

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Share Performance:

On Wednesday, the share of Dredging Corporation of India closed at around Rs 1129.20 per share, with a market capitalization of Rs 3161.76 crore. The stock has delivered a multibagger return of around 250 per cent in just 1 year. Moreover, the company’s stock hit the upper circuit today as well.

Financial performance:

According to the Quarterly Results, in Q4 FY24, the company reported a revenue of Rs 278 crore and an operating profit of Rs 22 crore. The operating profit margin for the quarter stands at 8 per cent. The company posted a net loss of Rs 23 crore. In FY24, the company reported a revenue of Rs 946 crore compared to Rs 1165 crore, and a net profit of Rs 36 crore, compared to a profit of Rs 13 crore in the previous year.

According to the shareholding patterns, promoters own 73.47 per cent, while FIIs and DIIs own 0.30 per cent and 5.14 per cent and the public investors own 21.01 per cent. In the recent quarter, Mukul Agarwal bought 5,05,000 shares, representing a 1.80 percent stake.

Investors must keep this small-cap stock on their radar.

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