Low PE & high ROE multibagger stock with 25,000 per cent returns: Board allots of 1,25,85,300 fully convertible warrants on a preferential basis!

The stock gave multibagger returns of 160 per cent in just 1 year; 4,100 per cent in 3 years and a whopping 25,000 per cent in 5 years.

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 670 crore.  

Hazoor Multi Projects Limited announced that their board of directors approved the allotment of 1,25,85,300 fully convertible warrants to non-promoters in the public category. These warrants can be converted into regular company shares at Rs 300 per warrant, with an initial payment of 25 per cent required upfront. The remaining 75 per cent needs to be paid within 18 months of allotment. This allotment follows approval from a company shareholder meeting and the Bombay Stock Exchange. There will be a lock-in period for these preferentially allotted warrants, as defined by Indian securities regulations.

In the allotment, FIIs names appeared they were Minerva Venture Fund, Resonance Opportunities Fund, NAV Capital VCC-NAV Capital Emerging Star Fund, Ovata Equity Strategies Master Fund, North Star Opportunities Fund, etc.

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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 3.3 per cent to Rs 372 per share from its previous closing of Rs 360.15. 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 160 per cent in just 1 year; 4,100 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.