Promoters Bought 96,00,000 Shares & 10:1 Stock Split: Multibagger Railway Engineering Stock Hit 20 Per Cent Upper Circuit With 30 Times Spurt In Volume
At the closing bell, shares of the company were trading at Rs 372.60 per share, up 15.16 per cent with a spurt in volume by more than 30 times on BSE.
On Wednesday, shares of K&R Rail Engineering Ltd hit 20 per cent upper circuit to Rs 388.35 per share from its previous closing of Rs 323.55. The stock’s 52-week high is Rs 800 and its 52-week low is Rs 303.55. At the closing bell, shares of the company were trading at Rs 372.60 per share, up 15.16 per cent with a spurt in volume by more than 30 times on BSE.
K&R Rail Engineering Ltd informed that the Board of Directors has approved and passed the following resolutions by circulation and allotment of 96,00,000 equity shares of face value of Rs 10 each to as fully paid-up pursuant to conversion of 96,00,000 of 7 per cent Optionally Convertible Redeemable Preference shares of Rs 10 each aggregating to Rs 960,00,000 to the Promoter and Promoters group.
Earlier, K&R Rail Engineering Limited 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.
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Furthermore, 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 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
According to Quarterly Results, the company reported net sales of Rs 142.23 crore and a net profit of Rs 3.18 crore in Q1FY25 compared to net sales of Rs 200.10 crore and a net profit of Rs 5.08 crore in Q1FY24. 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.
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 Rs 821.96 crore and has delivered good profit growth of 204 per cent CAGR over the last 3 years
The stock gave multibagger returns of 1,325 per cent in 2 years whereas BSE Sensex Index is up by 40.7 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.