Sunil Singhania bought 10,00,000 shares of this multibagger stock with order book worth Rs 16,447 crore; Mukul Agrawal owns 20,00,000 shares and stock trades at low PE!

The stock is up by 90 per cent in just 1 year whereas BSE Sensex Index is up by 16 per cent.

Indian stock markets closed higher on Thursday, with the BSE Sensex and NSE Nifty-50 indices both gaining over 0.5 per cent each.

Along with the market in green, one multibagger civil construction stock gained 7.01 per cent to an intraday high of Rs 500 per share, from its previous closing of Rs 67.25. At the closing bell, shares of the company were trading at Rs 491 per share, up 5.08 per cent. The stock’s 52-week high is Rs 507 and its 52-week low is Rs 229.

The stock name is J. KUMAR INFRAPROJECTS LTD.

J Kumar Infraprojects Limited is engaged in the business of execution of contracts for various infrastructure projects including transportation engineering, irrigation projects, civil construction & piling work, etc.

The company has a market capitalization of Rs 3,139 crore and shares have a PE of 12.14x whereas the industry PE is 24x. As of September 30, 2023, the company has Rs 16,447 crore worth of projects in its order book, forming 4x of FY23 revenue.

An ace investor, Sunil Singhania through its fund, i.e., Abakkus Diversified Fund, bought a total of 10,00,000 shares or 1.32 per cent stake at an average trading price of Rs 455.50 per share. Earlier, his fund already owned 20,05,000 shares or 2.65 per cent of the company. Hence, Sunil Singhania aggregative owns 30,05,000 shares or 3.97 per cent as of today. Furthermore, another ace investor, Mukul Agrawal owns 20,00,000 shares of a company or 2.64 per cent stake.

Earlier, the company received an order worth Rs 582,68,40,000 and will be completed in 24 months from LOI. The order includes the construction of a 4-lane elevated corridor in the grand southern trunk road on Engineering, Procurement & Construction (EPC) Mode from The Superintending Engineer, Highway Department, Construction and Maintenance, Chennai Circle, Chennai.

According to the Quarterly Results, the net sales increased by 9.02 per cent to Rs 1,104.18 crore, operating profit increased by 6.33 to Rs 165.11 crore and net profit increased by 8.74 per cent to Rs 73.44 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 11.41 per cent to Rs 2,235.4 crore and net profit increased by 13 per cent to Rs 146.77 crore in H1FY24 compared to H1FY23.

The stock is up by 90 per cent in just 1 year whereas BSE Sensex Index is up by 16 per cent. The stock gave multibagger returns of 120 per cent from its 52-week low of Rs 229 per share. Investors should keep an eye on this Small-Cap civil construction stock.

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