Rs 50 Crore to Rs 5,000 Crore Projects: Multibagger Engineering Company Signs MoU with Indian Port Rail and Ropeway Corporation Ltd
The stock gave multibagger returns of 950 per cent in 3 years whereas the BSE Sensex Index is up by 37 per cent.
A significant Memorandum of Understanding (MoU) has been formalized between K&R Rail Engineering Limited and Indian Port Rail and Ropeway Corporation Limited (IPRCL), a Public Sector Undertaking under the Ministry of Shipping, Government of India. This agreement outlines a collaborative effort to execute substantial infrastructure projects, encompassing Railways, Roads, Highways, Ports, and other large-scale ventures, with project values ranging from Rs 50 crore to Rs 5,000 crore. The primary objective is to foster mutual benefit and seamless growth for both organizations, both domestically and internationally. This MoU signifies a strategic partnership for the joint execution of civil projects, specifically EPC (Engineering, Procurement, and Construction) contracts in Phase-II, within the Indian domestic market.
The key terms of this domestic MoU emphasize the joint execution of projects valued up to Rs 5000 crore, facilitated by the IPRCL. This collaboration aims to leverage the combined expertise of both entities to undertake major infrastructure developments. The agreement specifies that the nature of the contracts will be EPC, and the projects are intended to be executed within India. This partnership is designed to enable both K&R Rail Engineering Limited and Indian Port Rail and Ropeway Corporation Limited to expand their operational capabilities and market reach through collaborative infrastructure projects of substantial scale.
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About the Company
K&R Rail Engineering Ltd is engaged in the business of laying private railway sidings on a turnkey basis. The company has a market cap of over Rs 836 crore and has delivered good profit growth of 28 per cent CAGR over the last 5 years
According to Quarterly Results, the net sales increased by 5 per cent to Rs 152.21 crore and net profit increased by 518 per cent to Rs 6.43 crore in Q3FY25 compared to Q3FY24. Looking at its nine-month results, the company reported net sales of Rs 455.61 crore and a net profit of Rs 14.55 crore in 9MFY25. 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.
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 the 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
In December 2024, FIIs took a fresh entry and bought 1,60,000 Shares or 0.56 per cent stake in the company. The stock gave multibagger returns of 950 per cent in 3 years whereas the BSE Sensex Index is up by 37 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.