10:1 stock split & 1,825 per cent returns: Multibagger railway engineering company bags new order worth Rs 110 crore from Fomento Resources Pvt Ltd

The stock gave multibagger returns of 1,825 per cent in 2 years whereas BSE Sensex Index is up by 33 per cent.

K&R Rail Engineering Limited has secured a work order from Fomento Resources Private Limited, based in Panaji, Goa, for a project involving the design, consultancy, and railway approvals (Phase I) followed by the execution on an EPC basis (Phase II) of a railway siding facility at Kaley Station in Hubballi Division, South Western Railway. This domestic order, valued at Rs 110 crore, mandates project completion within 18 months. The project scope includes comprehensive railway siding infrastructure development. There are no related party transactions or promoter/group company interests involved in this order from the domestic entity, Fomento Resources Private Limited.

On Wednesday, shares of K&R Rail Engineering plunged 3.77 per cent to Rs 457.30 per share from its previous closing of Rs 475.20 with an intraday high of Rs 480 and an intraday low of Rs 449.35. 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 142.23 crore and a net profit of Rs 3.18 crore in Q1FY25 compared to net sales of Rs 200.10 crore and a net profit of Rs 5.08 crore in Q1FY24. 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 Rs 968 crore and has delivered good profit growth of 204 per cent CAGR over the last 3 years

The stock gave multibagger returns of 1,825 per cent in 2 years whereas BSE Sensex Index is up by 33 per cent. 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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