Penny stock jumps 19% after receiving order for industrial factory building worth ₹ 230 Mil

Shares of Shashijit Infraprojects Ltd, a construction company, surged by up to 19 percent following the announcement of a new work order worth Rs 230 million from a prominent polyester manufacturer. The company’s market capitalization is Rs 39.82 crore, with shares trading at Rs 7.64 each, representing a 9.77 percent increase from the previous closing price.

The new work order involves the construction of an Industrial Factory Building and must be completed within 12-15 months. Additionally, the company is also involved in civil construction work for its Phase-1 project.

Despite the positive news, the company’s financial performance saw a decline in revenue by 33 percent and a net loss of Rs 1.02 crore in Q4FY24. However, Shashijit Infraprojects Ltd has a strong client base that includes reputable companies such as Electromag Devices, CPS Colour System, and Apar Industries.

In terms of ratios, the company’s return on equity and return on capital employed decreased, while the net profit margin for the fiscal year 23-24 was negative. The shareholding pattern as of March 2024 shows 51.16 percent for promoters and 48.83 percent for the public.

Shashijit Infraprojects Limited is an Indian industrial and infrastructure enterprise specializing in the development of industrial infrastructure projects. The company’s business categories include construction and government infrastructure projects.

Investors should exercise caution when investing in equities as it poses a risk of financial losses. It is advisable to consult with an investment advisor before making any investment decisions.