This small-cap company declared as the highest bidder for a project by NHAI; Stock price jumped by 5 per cent to Intraday High
The stock is up by 38 per cent from its 52-week low of Rs 749 per share and gave returns of over 11 per cent in last 3 months.
Shares of NESCO Ltd soared by 5 per cent to an intraday high on Tuesday to Rs 1,048, registering volume of 1,75,000 till 12:00 pm.
In a significant development, NESCO Ltd has been declared the highest bidder for a prestigious project by National Highways Logistics Management Limited (NHLML), a wholly-owned Special Purpose Vehicle (SPV) of the National Highways Authority of India (NHAI), under the Ministry of Road Transport and Highways. The official allotment of the tender was received on January 6, 2025, at 1:16 PM.
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The project involves the development, operation, and maintenance of wayside amenities along the Bengaluru-Chennai Expressway Corridor (Phase II) in the South Zone. The contract encompasses three sites and will be executed on a lease basis for a period of 30 years, with the first right of refusal for extending the lease by another 30 years. The development phase is expected to be completed within 10 months from the appointed date.
The total cost for developing the three sites is estimated at approximately Rs 75 crores per site. Once operational, the company expects annualized revenue of around Rs 350 crores from the fourth year of operations. The annual lease rent for the three sites is Rs 16.60 crores, with a fixed annual revision based on increases in the Wholesale Price Index (WPI) and Consumer Price Index (CPI).
NESCO is engaged in the businesses of Licencing premises in IT park buildings and providing related services, licencing premises for exhibitions and providing services to the organisers, manufacturing of machines and capital equipment, and providing hospitality and catering services.
As of September 2024, FIIs has increased their shareholding by 0.07 per cent owning a 3.95 per cent stake in the company. The stock has an ROE of 17 per cent and an ROCE of 22.4 per cent. The stock is up by 38 per cent from its 52-week low of Rs 749 per share and gave returns of over 11 per cent in last 3 months. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.