FIIs Bought 90,00,000 Shares of This Penny Stock Below Rs 1, Hits 5 Per Cent Upper Circuit; Trades at 0.41x Its Book Value
On an annual basis, the company posted revenue of Rs 37.40 crore for FY25, a 2,025 per cent rise over Rs 1.76 crore reported in FY24.
Sharanam Infraproject and Trading Ltd, a company engaged in the real estate and building materials business, has announced the incorporation of a wholly owned subsidiary in the United Arab Emirates (UAE). The board has approved an investment of approximately AED 15.5 million to AED 18 million (equivalent to Rs 35–40 crore), which will be deployed over the next 6–9 months. This capital outlay includes working capital and deal facilitation costs, and marks a strategic step towards the company's international expansion.
The proposed entity will be established under the legal framework in Dubai and will serve as Sharanam's international arm. The subsidiary will focus on acquiring strategically located land parcels, which will later be sold to larger developers or institutional buyers. The company plans to operate through a low-risk, asset-light structure that ensures minimal exposure to the parent company’s balance sheet, quick capital turnover, and sustainable cash flows. This investment will be structured in compliance with the Foreign Exchange Management Act (FEMA) and RBI’s Overseas Direct Investment (ODI) norms wherever applicable.
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Company management stated that this move is aligned with Sharanam’s long-term goal of entering global markets in a risk-managed manner. The company also emphasized its commitment to transparency and regulatory compliance and will update shareholders on key developments, incorporation progress, and project milestones in due course.
Sharanam's financial performance for the quarter ending March 2025 witnessed a remarkable surge. Revenue from operations stood at Rs 23.84 crore, compared to Rs 1.76 crore in the March 2024 quarter, reflecting a year-on-year growth of 1,254.55 per cent. Profit after tax (PAT) jumped to Rs 3.94 crore from Rs 0.10 crore in the same period last year, registering a 3,840.00 per cent increase.
On an annual basis, the company posted revenue of Rs 37.40 crore for FY25, a 2,025.00 per cent rise over Rs 1.76 crore reported in FY24. PAT for the year surged to Rs 5.08 crore from Rs 0.03 crore, marking an exceptional year-on-year increase of 16,833.33 per cent. These multibagger-style returns on profitability reflect the company’s rapid scale-up and operational leverage.
To support its growth trajectory, Sharanam had raised Rs 48 crore in February 2025 through a rights issue. The funds were earmarked for expansion plans and working capital requirements.
Incorporated in 1992, Sharanam Infraproject and Trading Ltd operates in the supply of building materials and steel products, catering to real estate and infrastructure sectors primarily in Gujarat and nearby states. Its services extend to real estate transactions involving land and buildings, along with activities such as construction, renovation, leasing, and maintenance. The company is also involved in the distribution of steel products such as seamless and welded pipes, ERW, HFI, LSAW, and slabs used in oil and gas as well as infrastructure projects. The stock price is trading at 0.41 times its book value and in the March 2025 quarter, Al Maha Investment fund pcc-onyx strategy bought 90,00,000 shares, acquiring a stake of 1.52 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.