Penny stock: Nila Infra gains by more than 7 per cent

Nila Infrastructures Ltd, a penny stock in the infrastructure space outperformed in today's session by gaining 7.29 per cent with increasing volumes. The stock is up by 24 per cent on a YTD basis. 

Nila Infra is an Ahmedabad-based company that holds the prime commercial property in the city, which is leased to reputed corporates. It also actively partakes in urban development in the form of EPC/turnkey projects of affordable housing schemes floated by government authorities. The company's main focus is on affordable housing projects. It has a diversified order book with civic urban infrastructure projects such as medical colleges, bus ports, BRTS stations, multi-level parking facilities, etc. Nila Infra has an order book of Rs 528.28 crore as of June 30, 2020.

Nila Infra is a micro-cap company with a market cap of Rs 193 crore. The stock of Nila Infra is a high beta stock with a beta value of 1.50. The company has been struggling lately, which reflects in its quarterly results. The reported net sales were down by 87 per cent YoY for Q1FY21. Net sales were reported at Rs 6 crore. The consolidated net profit fell by 204 per cent YoY. The company reported a net loss of Rs 4.04 crore for Q1FY21 as against a net profit of Rs 3.85 in Q1FY20. The RoE is 17.86 for the last three years while the stock has delivered negative 32 per cent returns (CAGR) in the past three years.