High ROE & High ROCE stock: Micro-cap construction company receives order worth Rs 24.35 crore!

The shares of the company zoomed over 5 per cent today.

Markolines Pavement Technologies Ltd informed that the company has received a work order worth Rs 24.35 crore (excluding GST), from Brihanmumbai Municipal Corporation (a Domestic Corporation) located in Mumbai, India, for the work of preventive maintenance work of the eastern freeway from P. Dmello Road to Ghatkopar Mankhurd Link Road, which shall be completed within 9 months.

Additionally, Markolines Pavement Technologies Ltd as known as Markolines Traffic Controls Ltd in its recent press release announced a rights issue in the ratio 5:32. The company had done an ex-rights issue on January 17, 2023 as the record date. 

Today, shares of Markolines Pavement Technologies Ltd zoomed 5.16 per cent to an intraday high of Rs 133.40 per share from its previous closing of Rs 126.85.

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Markolines Pavement Technologies Ltd has a market cap of Rs 241 crore. It is engaged in highway operations & maintenance (O&M) service providing company. The company’s operations are mainly divided into-highway operations, highway maintenance and specialized maintenance services. The company informed the exchange that 'Markolines Traffic Controls Ltd' will be renamed 'Markolines Pavement Technologies Ltd' in the current fiscal year, 2022-2023.

According to the half-yearly and annual financial statements, the firm reported positive results. In H1FY23 net sales rose by 100.12 per cent and net profit rose by 157.24 per cent compared to H1FY22.

The stock has a ROE of 23 per cent and a ROCE of 27 per cent. The company has a good return on equity (ROE) track record: 3 years ROE 25.10 per cent. Investors should keep an eye on this small-cap stock.