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Microcap stock hits 10% upper circuit after securing contract worth ₹40 Cr from Gulnar Plastics

Published 06-11-2024, 12:40 pm
Updated 06-11-2024, 04:15 pm
© Reuters.  Microcap stock hits 10% upper circuit after securing contract worth ₹40 Cr from Gulnar Plastics
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During Wednesday’s trading session, the shares of a building and civil construction company in India hit a 10 percent upper circuit at Rs. 180.3 on BSE, after the company announced receiving an order worth Rs. 40 crores for civil works.

With a market cap of Rs. 56.6 crores, the shares of Conart Engineers Ltd (BO:CONE) opened in the green at Rs. 164, as compared to its previous closing price of Rs. 163.95.

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What’s the news:

Conart Engineers Limited secured a civil work contract, valued at Rs. 40 crores, from Gulnar Plastic Private Limited. The project is scheduled for completion within 15 months from the date of site mobilization, which started on 1st November 2024.

According to the latest regulatory filings with the BSE, the order for civil work is for the construction of the factory building, plant, and ancillary structure for Gulnar Plastics’ woven sacks and FIBC manufacturing facility located in Silvasa.

Previous Orders & News:

On 5th September, Conart Engineers secured a civil work order worth Rs. 14.5 crores from Apothecon Pharmaceuticals Private Limited. The project involves the construction of a formulation facility for Apothecon Pharma, located in Vadodara.

On 11th September, the company received another order, valued at Rs. 7 crores, for civil and structural construction work from Bundy India Limited. This order pertains to construction activities at Bundy India’s facility at 2, GIDC Industrial Estate, Makarpura, Vadodara.

On 16th September, at the Annual General Meeting, the shareholders approved the sub-division/stock split of Conart Engineers for a face value of Rs. 10 each to Rs. 5 each.

Financials:

The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 15 percent, rising from Rs. 8.7 crores in Q1 FY24 to Rs. 10 crores in Q1 FY25.

Likewise, during the same period, the company’s net profit increased from Rs. 0.13 crore to Rs. 0.14 crore, representing a marginal growth of around 7.7percent YoY.

Stock Performance:

The stock has delivered multibagger returns of nearly 238.5 percent in one year, while around 56 percent of positive returns in the last six months. So far in 2024, the shares of Conart Engineers have given multibagger returns of about 169 percent.

About the company:

Conart Engineers Limited is engaged in the business of providing a full range of general contracting and project management services for industrial, commercial, and residential construction projects. The company provides services to sectors like Heavy Machinery, Pharmaceuticals, Chemicals, Textiles, and Educational.

Written by Shivani Singh

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