Multibagger Penny Stock Under Rs 50: Company Broadens Horizons with Major Business Expansion
The stock gave multibagger returns of 175 per cent in just 2 years and a whopping 1,200 per cent in 3 years.
The Board of Directors of Hazoor Multi Projects Limited (HMPL) convened a meeting at their registered office in Mumbai. During this meeting, the Board approved a significant expansion of the Company's main objects, reflecting a strategic move into diverse sectors. These new business areas include Shipbuilding and Engineering, Ship Repair and Maintenance, Maritime Industry, Shipping Logistics and Transport, Mining and Quarrying, Oil and Gas Industry (including extraction of crude petroleum and natural gas, oilfield equipment and services), Environmental Engineering and Sustainability (including waste management), and Hospitality, Lodging, Food and Beverage Services, and Related Travel and Tourism Services. To formalise this expansion, the Board resolved to add new sub-clauses (numbered 8 to 14) to Clause III-A of the Company's Memorandum of Association (MoA).
The newly approved clauses grant HMPL the authority to engage in a comprehensive range of activities within these sectors, either independently or through subsidiaries, SPVs, or joint ventures. This includes everything from manufacturing, designing, and operating various types of marine vessels and structures, to providing oilfield equipment and services like drilling rigs and technical consultancy for both onshore and offshore operations. Furthermore, HMPL will now be able to undertake environmental engineering projects, including integrated waste management facilities and pollution monitoring systems. The company is also poised to enter the hospitality and tourism sector, encompassing the management and marketing of hotels, resorts, and various food and beverage services, along with acting as travel agents. This broad expansion of the MoA signifies HMPL's intent to diversify its revenue streams and establish a stronger presence across multiple high-growth industries.
Recently, the company issued 3,27,500 new equity shares at Rs 30 each (Re 1 face value + Rs 29 premium) after converting 32,750 warrants. This move, following a stock split, saw non-promoter Venkatraman Subramanian pay Rs 73,68,750, representing 75 per cent of the warrant issue price. The company's paid-up capital is now Rs 22,44,33,910. Remaining warrants can be converted into an equal number of shares by paying the remaining 75 per cent (Rs 225 per warrant).
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Additionally, the company secured a one-year contract worth Rs 22.995 crore from the National Highways Authority of India. The company will collect user fees at the Shrishikalan Fee Plaza on NH-76 in Uttar Pradesh and handle the upkeep of nearby toilet facilities. This contract supports rehabilitating and upgrading the Kabarai-Banda Section to a two-lane highway.
About the Company
Hazoor Multi Projects Ltd is a leading Indian company that builds roads, bridges, and other civil engineering projects. They focus on good quality, safety, and finishing projects on time. They're known for doing excellent work. They have skilled workers and the right equipment to handle big and complex projects. Hazoor Multi Projects helps India grow by building important infrastructure that boosts the economy and makes travel easier.
The company has a market cap of Rs 876 crore. The company reported net sales of Rs 249 crore and a net profit of Rs 17 crore in its Quarterly Results (Q4FY25) while in its half-yearly results (H2FY25), the company reported net sales of Rs 414 crore and a net profit of Rs 20 crore. Looking at its annual results (FY25), the company reported net sales of Rs 638 crore and a net profit of Rs 40 crore. The Board has recommended a final dividend of Re. 0.20 per equity share (20 per cent) for the financial year 2024-25. Additionally, the Board has approved the proposal to list the company's securities on the Main Board of the NSE, pending fulfilment of all listing criteria and receipt of necessary approvals.
In FY25, DIIs took a fresh entry and bought 8,08,983 shares or 0.39 per cent stake compared to FY24. The company's shares have a PE of 10x whereas the sectoral PE is 21x. The stock gave multibagger returns of 175 per cent in just 2 years and a whopping 1,200 per cent in 3 years. From Rs 0.13 to Rs 41.49 per share, the stock rocketed by 31,815 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.