10:1 stock split & 1,500 per cent returns: Multibagger railway engineering bags new order worth Rs 450 million from The KCP Limited

The stock gave multibagger returns of 1,255 per cent in 2 years and a whopping 1,500 per cent in 3 years.

K&R Rail Engineering Limited (K&R Rail) secured a work order worth Rs 450 million from The KCP Limited for constructing railway siding facilities at their cement production Unit-II in Andhra Pradesh. This EPC/Turnkey project aims to establish rail connectivity for the cement unit, enabling activities like loading cement, unloading imported coal and gypsum, and potentially loading clinker in the future. The project, located within the Secunderabad Division of South Central Railway, is expected to be completed within nine months.

On Tuesday, shares of K&R Rail Engineering gained 0.31 per cent to Rs 497.60 per share from its previous closing of Rs 496.05 with an intraday high of Rs 510 and an intraday low of Rs 495. The stock’s 52-week high is Rs 863.35 and its 52-week low is Rs 414.

The Board of Directors of the company announced the stock split in the ratio 10:1 i.e., sub-division/stock split of existing 1 equity share of face value of Rs 10 each fully paid up into 10 equity shares of Re 1 each fully paid up. The record date for the sub-division of equity shares will be intimated to the Exchanges subsequently, after the approval of the resolution for sub-division by the shareholders at EGM.

According to Quarterly Results, the company reported net sales of Rs 152.75 crore and a net loss of Rs 7.78 crore in Q4FY24 compared to net sales of Rs 207.10 crore and net profit of Rs 3.23 crore in Q4FY23. In its annual results, the net sales increased by 70 per cent to Rs 662.41 crore and net profit increased by 24 per cent to Rs 7.79 crore in FY24 compared to FY23.

K&R Rail Engineering Ltd is engaged in carrying on the business of laying private railway sidings on a turnkey basis. The company has a market cap of over Rs 1,000 crore and has delivered good profit growth of 204 per cent CAGR over the last 3 years

The stock gave multibagger returns of 1,255 per cent in 2 years and a whopping 1,500 per cent in 3 years. Investors should keep an eye on this Small-Cap stock in the upcoming sessions.

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

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