Penny stock hits upper circuit after company received contract worth ₹ 4.64 Cr

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Penny stock hits upper circuit after company received contract worth ₹ 4.64 Cr
Credit: © Reuters.

The shares of the construction company hit 2 percent upper circuit after the company received a contract for the construction of a High-Level RCC Bridge Across Odai worth Rs 4.64 crore.

With a market capitalization of Rs 46.35 crore, the shares of Constronics Infra Ltd were trading at Rs 64.30 per share, increasing around 2 percent as compared to the previous closing price of Rs 63.04 apiece.

According to the company filing, Constronics Infra Ltd has received a contract for the construction of a High-Level RCC Bridge Across Odai in Karunya Educational and Research Trust, Karunya Nagar from Karunya Institute of Technology and Sciences, Coimbatore worth Rs 4.64 crore. The contract shall be completed within 210 days after turning over the site for execution.

Looking into Constronics Infra Ltd’s performance, revenue decreased by 57 percent from Rs 0.18 Crore in Q3FY23 to Rs 0.15 Crore in Q3FY24. During the same time frame, net profit decreased by 12 percent from Rs 0.07 crore to Rs 0.03 crore.

Recently, KCP (NS: KCP ) Infra Limited has awarded the company a work order for Rs. 55.17 crores to widen Arcot Tindivanam Road (SH5) and Thiruvathipuram Bypass Road from two lanes to four lanes, as well as to strengthen it.

The company’s profitability measures show a decline in return on equity (RoE) from 91.04 percent in FY 21-22 to 22.80 percent in FY 22-23, while, during the same period return on capital employed (RoCE) decreased from 9.55 percent to 11.60 percent. In contrast, the net profit margin (NPM) was 6.90 percent in fiscal year 22-23.

In the company’s recent shareholding pattern, promoters own 18.47 percent while Retail shareholders own an 81.53 percent stake in the company.

Constronics Infra Limited is an India-based firm that specializes in infrastructure and construction. The Company is in the business of trading construction and building supplies such as blue metals, m-sand, crushed stone, and related items.

Written by:- Abhishek Singh

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The post Penny stock hits upper circuit after company received contract worth ₹ 4.64 Cr appeared first on Trade Brains.

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