10:1 stock split & 39,500 per cent multibagger returns: Civil construction company approval for merger of Square Port Shipyard Pvt Ltd

The stock gave multibagger returns of 325 per cent in just 1 year and a whopping 3,450 per cent in 3 years.

Today, shares of Hazoor Multi Projects Ltd gained 2.11 per cent to Rs 595 per share from its previous closing of Rs 582.65. The stock gave multibagger returns of over 400 per cent from its 52-week low is Rs 115 per share.

The Board of Directors of the company in their meeting held today i.e., Monday, September 16, 2024, at the registered Office of the company at C-45, 4th Floor, Plot 210, Mittal Tower, C, Wing, Barrister Rajani Patel Marg, Nariman Point, Mumbai-4000021 inter-alia considered and approved in-principal approval for a merger of Square Port Shipyard Private Limited with the company i.e. Hazoor Multi Projects Limited to combine the strengths and synergies of both businesses and in the better interest of all the stakeholders, subject to the approval of shareholders, creditors, stock exchange, NCLT, SEBI, and all other statutory/ applicable authorities and accordingly, to facilitate, monitor and ensure effective implementation of the merger decision on time constituted a Specific Transaction Committee to manage and oversee all necessary steps related to the proposed merger including the appointment of various intermediaries required for this purpose.

Earlier, the National Highways Authority of India (NHAI) awarded Hazoor Multi Projects Limited a contract to act as the user fee collection agency for widening the NH218 Bijapur Hubli section in Karnataka. This contract, valued at Rs 2.59 crore, is expected to be completed within 3 months from the appointment date. Subsequently, Hazoor Multi Projects Limited has been awarded another contract by the NHAI to collect user fees at the Bogalur fee plaza on NH-9 in Tamil Nadu. This contract, worth Rs 17.94 crore, involves user fee collection, upkeep of adjacent toilet blocks and recouping of consumable items and will be executed within one year from the appointment date.

Furthermore, The Board of Directors of the company announced the 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 in the AGM meeting. The record date for the stock split is yet to be determined.

About the Company

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 1,196.5 crore. 

Consolidated Results: According to Quarterly Results, the company reported net sales of Rs 70.26 crore and net profit of Rs 9,46 crore in Q1FY25. In its annual results, the company reported net sales of Rs 545 crore and a net profit of Rs 63.77 crore in FY24.

In June 2024, FIIs bought 19,29,785 shares and increased their stake to 19.18 per cent compared to 10.92 per cent in March 2024. The shares of the company have a PE of 15x whereas the sectoral PE is 26x with an ROE of 86 per cent & an ROCE of 84 per cent. The stock gave multibagger returns of 325 per cent in just 1 year and a whopping 3,450 per cent in 3 years. From Rs 1.50 to Rs 595 per share; the stock rocketed over 39,500 per cent in 5 years.Investors should keep an eye on this Small-Cap stock.

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

Also Read: Defence company bags new order worth Rs 4.20 crore from Economic Explosives Ltd & DRDO & lowest bidder (L1) for an order worth Rs 72.26 crore from Munitions India Ltd