Penny Stock Under Rs 2: Micro-Cap Construction Company Secures Contract Worth USD 20 Million for Infrastructure Development in East Africa!

On Friday the company’s shares rallied 10 per cent in just 1 day and hit upper circuit with robust volumes.

KBC Global is engaged in real estate construction, development, civil contracts (EPC), and related activities. As a part of the Karda Group, the company specializes in developing both residential and commercial real estate projects. Its portfolio prominently features residential developments, encompassing a diverse range of housing options from 1BHK apartments to penthouses.

KBC Global has been awarded a subcontract for a civil engineering job in the soft infrastructure segment worth USD 20 million by CRJE (EAST AFRICA) LIMITED, a modern enterprise with a distinguished history of building railways and 5-star hotels across Africa. CRJE (EAST AFRICA) LIMITED evolved from the TAZARA Construction Aiding Team of the Jianchang Engineering Bureau of the China Ministry of Railways and is part of the China Railway Construction Group. It was established for business development in East Africa. KBC Global achieved this contract through its wholly-owned subsidiary, Karda International Infrastructure Limited. This marks KBC Global's initial step toward becoming a key player in Africa's infrastructure development.

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Share Performance:

On Friday the shares of KBC Global closed the day at Rs 1.76 per share. The company’s current market capitalization stands at Rs 190.85 crore. It has not delivered multibagger returns in the past.

Financial performance:

According to the Quarterly Results, in Q4 FY24, KBC Global reported a revenue of Rs 13 crore and an operating loss of Rs 26 crore. The company’s net loss stood at Rs 30 crore. In FY23, the company reported a revenue of Rs 108 crore compared to Rs 102 crore and a net loss of Rs 15 crore, compared to a profit of Rs 17 crore in the previous year.

Investors must keep this micro-cap stock on their radar.

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