The shares of this smallcap company jumped around 3 percent in Friday’s trading session after receiving an LOA from the National Highways Authority for projects worth Rs. 17.94 crores. In just one month the stock has delivered more than a 50 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,138 crores, the shares of Hazoor Multi Projects Ltd (BO:HAZO) started Friday’s trading session on a flatter note at Rs. 592.60. During the trading session, the shares hit a high of Rs. 614.90, gaining around 3 percent and are currently trading at Rs. 608 apiece.
Is Hazoor Multi Projects a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received a Letter of Acceptance (LOA) the from National Highways Authority of India for projects worth Rs. 17.94 crores.
As per the contract, the company would act as the collection agency for Bogalur Fee Plaza at Km. 98.129 for the section Madurai- Paramakudi – Ramanathapuram from km.55.000 to km.120.484 of NH-9 in the state of Tamil Nadu (NS:TNNP).
It would also undertake the upkeep/ maintenance of adjacent toilet blocks including recouping the consumable items. The tenure of the said project is 1 year from date of appointment.
Financials:
Looking at the company’s financial statements, the revenue declined by 85 percent from Rs. 463.93 crores during the March quarter to Rs. 70.26 crores in the June quarter. On the other hand, the net profits decreased by 82 percent from Rs. 53.94 crores to Rs. 9.46 crores during the same period.
Recent Developments:
Recently, the company received a work order from the National Highways Authority of India for acting as a user fee collection agency at Mulawad FP for widening to 2 lanes with paved shoulders from Km. 4.40 to 56.00 of NH218 Bijapur Hubli section in the state of Karnataka. The value of the awarded project is Rs. 2.59 crores.
Financials:
Looking at the company’s financial statements, the revenue declined by 85 percent from Rs. 463.93 crores during the March quarter to Rs. 70.26 crores in the June quarter. On the other hand, the net profits decreased by 82 percent from Rs. 53.94 crores to Rs. 9.46 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 26.95 percent and a return on capital employed (RoCE) of 23.08 percent for the period spanning FY23-24. Furthermore, the net profit margin during FY23-24 was 11.71 percent.
Shareholding Pattern:
According to the latest shareholding pattern, Retail Investors hold the majority of the shares at 59.75 percent, while Promoters own 21.08 percent and Foreign Institutional Investors (FIIs) hold 19.18 percent.
Company Profile:
Incorporated in 1992, Hazoor Multi Projects Ltd is in the business of infrastructure development as an EPC Contracting company.
It works as a sub-contractor in executing various national highway road projects awarded by government authorities such as Maharashtra State Road Development Corporation Ltd. and the National Highways Authority of India.
Written By Vaibhav Patil
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