K & R Rail Engineering, Ltd. experienced a significant surge, with its shares climbing over 15% to Rs 459.85 from an intraday low of Rs 398. The stock has shown strong performance over the past year, reaching a peak of Rs 800 and a low of Rs 303.55. In the last three years, the company has delivered an astounding multibagger return of 1,277%, far surpassing the BSE Sensex Index’s 33% increase, making it one of the most lucrative investments. As a small-cap stock, K & R Rail Engineering appears to be positioned for high demand among investors in the near future.
Recently, the company’s Board of Directors approved the issuance of 96 lakh equity shares at Rs 10 each to the promoter group. This move follows the conversion of 96 million optionally convertible redeemable preference shares (OCRPS) issued at a 7% dividend rate, amounting to a total of Rs 96 crores. This conversion enhances the company’s equity and reflects strong backing from its promoters.
In addition, K & R Rail Engineering secured a new work order from Fomento Resources Private Limited for a railway siding facility at Kaley Station in the Hubballi Division of South Western Railway. The project, valued at Rs 110 crores, will be executed in two phases: the first phase involves obtaining the necessary railway permissions and preparing the design, while the second phase encompasses the engineering, procurement, and construction (EPC) stage, with a completion timeline of 18 months.
The company also plans a stock split in a 10:1 ratio, which means that one equity share valued at Rs 10 will be subdivided into ten shares worth Rs 1 each, enhancing share liquidity for investors.
K & R Rail Engineering’s financial performance has been impressive, with a 70% increase in net sales, reaching Rs 662.41 crores in FY24, and a 24% growth in net profit, now standing at Rs 7.79 crores. The company has shown remarkable profit growth, with a compound annual growth rate (CAGR) of 204% over the last three years. With a market capitalization of Rs 970 crores, K & R Rail Engineering solidifies its position as a key player in the railway infrastructure sector.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Investment in stocks involves risks, and past performance is not indicative of future results. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher do not assume any responsibility for any losses or damages incurred as a result of reliance on the information provided herein.
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