Penny Stock Under Rs 12: Company Acquires 100 Per Cent Stake in MSK Projects and Secure Major NHAI Contract; Stock Price Surged by 6 Per Cent
As of Q1 FY25, Madhav Infra has an order book of Rs 982 crore, a major portion of which is in solar projects.
Madhav Infra Projects Limited has announced the acquisition of 100 per cent equity stake in MSK Projects (I) Private Limited making it a wholly owned subsidiary. The strategic acquisition is 20,000 equity shares at Rs. 10 each, worth Rs. 20,000. The acquisition is a related party transaction and the main purpose was the receipt of the letter of acceptance from the National Highways Authority of India. MSK Projects (I) Private Limited, incorporated in 2010, is involved in construction business but has not declared any turnover or profit up to 31st March 2025. The acquisition was done within one day and the consideration was made through banking channels. This move is in line with the strategic plan of Madhav Infra to strengthen its infrastructure development business.
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The company is incorporated in 2010 and mainly deals with infrastructure development and solar power generation. The company is an EPC contractor in the infrastructure development space with focus on road and industrial development and also has a strong presence in solar power. In FY24, infrastructure contributed to 99 per cent of its business from 97 per cent in FY22, while energy was 1 per cent compared to 3 per cent in FY22. The company has constructed many infrastructure projects in Madhya Pradesh and Gujarat and has a solar project portfolio of 119 MW. As of Q1 FY25, Madhav Infra has an order book of Rs 982 crore, a major portion of which is in solar projects. The company has also reduced its total debt from Rs. 255 crore in FY22 to Rs. 153 crore in FY24 whereby it prepaid the term debt.
Madhav Infra Projects Ltd witnessed a strong up-move today, closing at Rs 12.43, up by 6.15 per cent compared to the previous close of Rs 11.71. The stock opened lower at Rs 11.32 but quickly found buying interest, hitting an intraday high of Rs 13.25 before settling slightly lower. The stock has recorded a 52-week high of Rs 23.9 and a 52-week low of Rs 9.17. The company's market capitalization is approximately Rs 335 crore. Over the past year, the stock has delivered a return of 25.05 per cent, while the 3-year return stands at an impressive 132.77 per cent. Madhav Infra Projects Limited currently trades at a Price-to-Earnings (PE) ratio of 19.75.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 147.26 crore, reflecting a YoY growth of 67.76 per cent compared to Rs 87.78 crore in December 2023. The operating profit stood at Rs 15.19 crore, marking a decline of 6.35 per cent from Rs 16.22 crore in the same quarter last year. The profit after tax (PAT) declined by 25.07 per cent to Rs 2.69 crore from Rs 3.59 crore in December 2023.
In FY24, the company posted a revenue of Rs 460.39 crore compared to Rs 512.70 crore in FY23, registering a decline of 10.20 per cent. The net profit stood at Rs 21.68 crore, down by 36.08 per cent from Rs 33.92 crore in FY23.
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