Sunil Singhania gains 29,70,44,250 and Mukul Agrawal gains Rs 19,77,00,000 in just 1 day from this multibagger stock with Rs 16,447 crore order book; scrip hit upper circuit & 52-week high!!

If an investor who bought this stock near its 52-week low of Rs 229 per share has gained multibagger returns of over 150 per cent.

Indian stock markets kicked off the post-Christmas week with a vibrant green glow, shrugging off any holiday sluggishness. Both the BSE Sensex and NSE Nifty-50 indices, the forerunners of Indian equities, sprang over 0.4 per cent higher in early trade

Along with the market in green, one multibagger civil construction stock saw heavy buying and surged 16.9 per cent to an intraday high of Rs 578.85 per share from its previous closing of Rs 494.35. The stock also made a new 52-week high of Rs 578.85 per share with a spurt in volume by more than 2 times on BSE. If an investor who bought this stock near its 52-week low of Rs 229 per share has gained multibagger returns of over 150 per cent.

The stock that saw heavy buying is none other than J. KUMAR INFRAPROJECTS LTD.

J Kumar Infraprojects Limited is engaged in the business of execution of contracts for various infrastructure projects including transportation engineering, irrigation projects, civil construction & piling work, etc.

The company has a market cap of over Rs 4,300 crore and shares have a PE of 12.14x whereas the industry PE is 24x. As of September 30, 2023, the company has Rs 16,447 crore worth of projects in its order book, forming 4x of FY23 revenue.

Two ace investors, Sunil Singhania’s fund, i.e., Abakkus Diversified Fund* owns 30,05,000 shares or a 3.97 per cent stake and Mukul Agrawal owns 20,00,000 shares of a company or a 2.64 per cent stake.

(*Total shares owned by the fund are inclusive of the recent purchase of 10,00,000 shares at Rs 456 per share as per date available on NSE).  

In just 1 day, the stock gained by Rs 98.85 per share. Therefore, Sunil Singhania gains 29,70,44,250 and Mukul Agrawal gains Rs 19,77,00,000 from this multibagger civil construction stock.

Earlier, the company received an order worth Rs 582,68,40,000 and will be completed in 24 months from LOI. The order includes the construction of a 4-lane elevated corridor in the grand southern trunk road on Engineering, Procurement & Construction (EPC) Mode from The Superintending Engineer, Highway Department, Construction and Maintenance, Chennai Circle, Chennai.

According to the Quarterly Results, the net sales increased by 9.02 per cent to Rs 1,104.18 crore, operating profit increased by 6.33 to Rs 165.11 crore and net profit increased by 8.74 per cent to Rs 73.44 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 11.41 per cent to Rs 2,235.4 crore and net profit increased by 13 per cent to Rs 146.77 crore in H1FY24 compared to H1FY23.

The stock gave multibagger returns of over 120 per cent in just 1 year whereas BSE Sensex Index is up by 18 per cent. The stock gained over 340 per cent in 3 years. Investors should keep an eye on this Small-Cap civil construction stock.

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