Low PE & high ROE multibagger stock with 25,000 per cent returns: Board allots of 1,46,061 shares on conversion of warrants on a preferential basis!

The stock gave multibagger returns of 151 per cent in just 1 year; 3,900 per cent in 3 years and a whopping 25,000 per cent in 5 years.

Hazoor Multi Projects Limited allotted 1,46,061 equity shares to Non-Promoters/Public Category on a preferential basis. These shares were converted from warrants that were previously issued. The original warrants allowed the holder to purchase a share for Rs 300 by paying an upfront cost of Rs 75 (25 per cent of the total price). Now, the remaining Rs 225 (75 per cent of the total price) has been collected, converting the warrants into equity shares. This resulted in a total funding of Rs 3,28,63,750 for the company. The biggest beneficiary of this allotment is Yoshi Envirotech Private Limited, receiving 75,000 shares, which translates to 0.40 per cent ownership of the company.

Earlier, Hazoor Multi Projects Limited's board of directors approved the issuance of 1,25,85,300 fully convertible warrants to non-promoter public investors. These warrants can be converted into regular shares at Rs 300 each, with an upfront payment of 25 per cent and the remaining 75 per cent due within 18 months. This allotment follows shareholder and Bombay Stock Exchange approval, and the warrants will have a lock-in period as mandated by Indian securities regulations. Notably, some of the allotted warrants went to institutional investors including Minerva Venture Fund, Resonance Opportunities Fund, and others.

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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 650 crore. 

Standalone Results: According to Quarterly Results, the total income increased by 68 per cent to Rs 138.04 crore and net profit increased by 1.6 per cent to Rs 10.45 crore in Q4FY24 compared to Q3FY24. In its annual results, the company reported a total income of Rs 494.60 crore in FY24 compared to Rs 776.19 crore in FY23 while the net profit increased by 20.5 per cent to Rs 54.90 crore in FY24 compared to a net profit of Rs 45.58 crore in FY23.

Consolidated Results: According to quarterly results, the total income increased by 472 per cent to Rs 467.59 crore and net profit increased by 449 per cent to Rs 53.94 crore in Q4FY24 compared to Q3FY24. In its annual results, the company reported a total income of Rs 549.31 crore and a net profit of Rs 63.77 crore in FY24.

Today, shares of Hazoor Multi Projects Ltd zoomed 3.04 per cent to Rs 360.40 per share from its previous closing of Rs 349.75. The stock has a 52-week high of Rs 454 and its 52-week low is Rs 110.

In March 2024, FIIs took a fresh entry and bought 16,61,782 shares or 10.92 per cent. The shares of the company have a PE of 11.5x whereas the sectoral PE is 19x with an ROE of 86 per cent & an ROCE of 84 per cent. The stock gave multibagger returns of 151 per cent in just 1 year; 3,900 per cent in 3 years and a whopping 25,000 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

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