37,700 per cent returns; 10:1 stock split & FIIs bought 2,92,000 shares: Board of this civil construction company allotted 2,16,350 equity shares on conversion of warrants

The stock gave multibagger returns of 393 per cent from its 52-week low is Rs 115 per share.

Today, shares of Hazoor Multi Projects Ltd gained 2.5 per cent to Rs 567 per share from its previous closing of Rs 553.25. The stock gave multibagger returns of 393 per cent from its 52-week low is Rs 115 per share.

The Company announces the conversion of 2,16,350 warrants into an equal number of equity shares. These warrants were previously allotted to Non-Promoters/Public Category on a preferential basis at an issue price of Rs 300 per warrant, requiring a payment of Rs. 75 per warrant upfront. The remaining Rs 225 per warrant was due within 18 months from the date of allotment. Following today's conversion and allotment, the Company's issued and paid-up capital has increased to Rs 19,91,77,020. The new equity shares will rank pari-passu with existing shares. There are still 1,13,78,139 outstanding warrants that can be converted into equity shares by paying the remaining Rs 225 per warrant within the specified timeframe.

Earlier, the Board of Directors of Hazoor Multi Projects Limited, in their meeting on September 16, 2024, granted in-principle approval for the merger of Square Port Shipyard Private Limited with Hazoor Multi Projects Limited. This merger aims to combine the strengths and synergies of both businesses, benefiting all stakeholders. Subject to the approval of shareholders, creditors, stock exchanges, NCLT, SEBI, and other relevant authorities, a Specific Transaction Committee will be established to oversee and manage the merger process, including the appointment of necessary intermediaries. In other news, Hazoor Multi Projects Limited has been awarded two contracts by the National Highways Authority of India (NHAI). The first contract, valued at Rs 2.59 crore, involves acting as the user fee collection agency for widening the NH218 Bijapur Hubli section in Karnataka, expected to be completed within three months. The second contract, worth Rs 17.94 crore, entails user fee collection, maintenance of adjacent toilet blocks, and recouping consumables at the Bogalur fee plaza on NH-9 in Tamil Nadu, to be executed within one year.

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 over Rs 1,000 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 August 2024, FIIs bought 2,92,000 shares and increased their stake to 20.13 per cent compared to 19.18 per cent in June 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 350 per cent in just 1 year and a whopping 3,350 per cent in 3 years. From Rs 1.50 to Rs 567 per share; the stock rocketed over 37,700 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.