10:1 Stock Split & 33,840 Per Cent Returns: Civil construction company announces positive results & Allots 88,33,440 shares on conversion of warrants

Kiran Shroff
10:1 Stock Split & 33,840 Per Cent Returns: Civil construction company announces positive results & Allots 88,33,440 shares on conversion of warrants

The stock gave multibagger returns of 282 per cent from its 52-week low of Rs 13.30 per share.

On Thursday, shares of Hazoor Multi Projects Ltd plunged 1.65 per cent to Rs 50.75 per share from its previous closing of Rs 51.60 with an intraday high of Rs 54 and an intraday low of Rs 49.05. The stock gave multibagger returns of 282 per cent from its 52-week low of Rs 13.30 per share.

Hazoor Multi Projects Ltd, founded in 1992, has transitioned from residential construction to focus on infrastructure development. They primarily act as a subcontractor on national highway projects for government agencies like the Maharashtra State Road Development Corporation and the National Highways Authority of India. Additionally, Hazoor Multi Projects has ventured into the EPC (Engineering, Procurement and Construction) contracting business. The company has a market cap of Rs 997 crore. 

According to Quarterly Results, the net sales increased by 118 per cent to Rs 153.08 crore and net profit increased by 17 per cent to Rs 11.02 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales decreased by 59 per cent to Rs 225.16 crore and net profit decreased by 68 per cent to Rs 20.48 crore in H1FY25 compared to H2FY24.  

The Board has approved the conversion of 8,83,344 warrants into 88,33,440 equity shares, each with a face value of Re 1 and an issue price of Rs 30, including a premium of Rs 29. This conversion followed the subdivision of the company's equity shares from Rs 10 to Re 1. The remaining 75 per cent of the warrant's issue price, amounting to Rs 19,87,52,400, was paid by the warrant holders. The newly allotted shares rank equally with existing shares. Currently, 1,04,94,795 warrants remain outstanding, and their holders can convert them into equity shares by paying the remaining 75 per cent of the issue price within 18 months.

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Additionally, the shares of the company ex-traded stock split in the ratio 10:1 i.e., sub-division of equity shares of Rs 10 face value, 10 equity shares of face value of Re 1 each on Thursday, November 07, 2024. Hazoor Multi Projects Limited (HMPL) is making significant strides. The company is merging with Square Port Shipyard Private Limited to leverage synergies and benefit stakeholders, subject to regulatory approvals. Furthermore, HMPL has secured two contracts from the National Highways Authority of India (NHAI) for user fee collection and maintenance services on specific highway sections, totalling approximately Rs 20.53 crore.

In September 2024, FIIs bought 84,855 shares and increased their stake to 19.63 per cent compared to 19.18 per cent in June 2024. The shares of the company have a PE of 16x whereas the sectoral PE is 25x. The stock gave multibagger returns of 274 per cent in just 1 year and a whopping 2,300 per cent in 3 years. From Rs 0.15 to Rs 50.75 per share; the stock rocketed 33,733 per cent in 5 years. Investors should keep an eye on this penny stock.

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

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