Rs 13.50 crore order book & Multibagger in just 1 year; Board announces rights issue worth Rs 4,00,00,000

The stock gave multibagger returns of 352 per cent in just 1 year and a whopping 555 per cent in 2 years.

DMR Hydroengineering & Infrastructures Ltd announced that their Board of Directors approved raising funds to Rs 4,00,00,000 by issuing new equity shares to existing company members on a rights basis. The price and how many shares each member gets (right entitlement ratio) will be decided later. This rights issue is subject to approval from relevant authorities including SEBI and the Companies Act. To handle this process, the board also appointed KFin Technologies Limited as the Registrar and Share Transfer Agent and GYR Capital Advisors Private Limited as the advisor to manage the rights issue and seek listing permission on the Bombay Stock Exchange (BSE).

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.

Also Read: Under Rs 110: Multibagger civil construction stock to keep under the radar with a strong book of Rs 1,200 crore!

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 59.56 crore. The stock’s 52-week high is Rs 211.20 and its 52-week low is Rs 34.10. The stock gave multibagger returns of 352 per cent in just 1 year and a whopping 555 per cent in 2 years. Investors should keep an eye on this micro-cap stock.

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