10:1 Stock Split & PAT Jumps 518 Per Cent: Multibagger Railway Engineering Stock Jumps Over 9 Per Cent; FIIs Bought 1,60,000 Shares

In December 2024, FIIs took a fresh entry and bought 1,60,000 Shares or 0.56 per cent stake in the company.

On Monday, shares of K&R Rail Engineering jumped 9.1 per cent to Rs 362.90 per share from its previous closing of Rs 332.75 per share. The stock’s 52-week high is Rs 715.10 per share and its 52-week low is Rs 301.30 per share.

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 970 crore and has delivered good profit growth of 28 per cent CAGR over the last 5 years

The company 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.

According to Quarterly Results, the net sales increased by 5 per cent to Rs 152.21 crore and net profit increased by 518 per cent to Rs 6.43 crore in Q3FY25 compared to Q3FY24. Looking at its nine-month results, the company reported net sales of Rs 455.61 crore and a net profit of Rs 14.55 crore in 9MFY25. 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 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 the 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

In December 2024, FIIs took a fresh entry and bought 1,60,000 Shares or 0.56 per cent stake in the company. The stock gave multibagger returns of 950 per cent in 3 years whereas the BSE Small-Cap Index is up by 72 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.