10:1 Stock Split & 7 Times Volume Spurt: Multibagger Railway Engineering Stock Jumps Over 14 Per Cent From Intraday Low; Do You Own It?
The stock gave multibagger returns of 1,240 per cent in 3 years whereas BSE Sensex Index is up by 37.3 per cent.
On Monday, shares of K&R Rail Engineering Ltd jumped 14.6 per cent to Rs 414.75 per share from its intraday low of Rs 362 per share. The stock’s 52-week high is Rs 800 and its 52-week low is Rs 303.55. At the closing bell, shares of the company were trading at Rs 408.50 per share, up 11.41 per cent from its previous closing of Rs 366.65 per share with a spurt in volume by more than 7 times.
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 1,165 crore and has delivered good profit growth of 1312 per cent CAGR over the last 3 years
Earlier, K&R Rail Engineering Ltd informed that the Board of Directors has approved and passed the following resolutions by circulation and allotment of 96,00,000 equity shares of face value of Rs 10 each to as fully paid-up under conversion of 96,00,000 of 7 per cent Optionally Convertible Redeemable Preference shares of Rs 10 each aggregating to Rs 960,00,000 to the Promoter and Promoters group.
Additionally, K&R Rail Engineering Limited 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.
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Furthermore, 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 in due course
According to Quarterly Results, the company reported net sales of Rs 161.17 crore and a net profit of Rs 4.94 crore in Q2FY25 compared to net sales of Rs 142.23 crore and a net profit of Rs 3.18 crore in Q1FY25. 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.
The stock gave multibagger returns of 1,240 per cent in 3 years whereas BSE Sensex Index is up by 37.3 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.