Hazoor Multi Projects Jumps 5% After Securing ₹102 Crore Order from Venkatesh Infra Projects
Hazoor Multi Projects Ltd (HMPL) saw its shares rise by up to 5% after securing a significant ₹102 crore work order from Venkatesh Infra Projects Pvt. Ltd. The order, aimed at steel reinforcement and structural fabrication for the prestigious Versova-Bandra Sea Link project in Mumbai, has fueled optimism among investors, leading to an increase in stock value.
Stock Performance and Market Reaction
The stock of Hazoor Multi Projects Ltd showed a positive movement following the announcement. The shares, which had closed at ₹42.70 in the previous trading session, gained around 0.68% to trade at ₹42.99 per share. The company boasts a market capitalization of ₹892.05 crore, making it a strong player in the infrastructure sector.
Key Highlights of the Work Order:
- Project Name: Versova-Bandra Sea Link
- Client: Venkatesh Infra Projects Pvt. Ltd
- Scope of Work: Reinforcement steel cutting, bending, fixing, and fabrication of structural steel for bridge construction
- Order Value: ₹102 crore
Reason Behind the Stock Surge
Hazoor Multi Projects’ recent contract win is a crucial addition to its growing order book, reinforcing its position in the infrastructure sector. The Versova-Bandra Sea Link is one of Mumbai’s most ambitious infrastructure projects, and HMPL’s involvement highlights its credibility and technical expertise in executing large-scale construction work.
Financial Performance and Revenue Growth
The company’s financials have shown impressive revenue growth, although profitability has taken a hit. Below is a comparison of the company’s performance:
| Financial Metric | Q3FY24 | Q3FY25 | Growth (%) |
|---|---|---|---|
| Revenue (₹ Crore) | 80.63 | 164.87 | +104% |
| Net Profit (₹ Crore) | 9.83 | 2.72 | -72% |
Despite doubling its revenue year-on-year, HMPL saw a sharp 72% decline in net profit. This drop could be attributed to rising operational costs, increased project expenses, or fluctuating margins in the infrastructure sector.
Ongoing Infrastructure Projects
Hazoor Multi Projects Ltd is engaged in multiple infrastructure ventures, strengthening its foothold in the construction industry. Two major projects include:
- Samruddhi Mahamarg Expressway: HMPL is constructing a 29.93 km stretch of this 6-lane expressway in Maharashtra.
- NH-548A Wakan-Pali-Khopoli Project: The company is rehabilitating and upgrading a 40.68 km section of the highway to a 2-lane or 4-lane standard on an EPC basis.
These projects reflect the company’s strong pipeline and its continued focus on infrastructure expansion.
Ratio Analysis and Financial Health
The company’s key financial ratios indicate a decline in return on equity (ROE) and return on capital employed (ROCE), reflecting margin pressures. Here’s a snapshot of HMPL’s financial ratios:
| Metric | FY22-23 | FY23-24 |
|---|---|---|
| Return on Equity (ROE) | 56.05% | 24.09% |
| Return on Capital Employed (ROCE) | 60.89% | 26.39% |
| Net Profit Margin (NPM) | – | 11.20% |
The decline in ROE and ROCE suggests lower efficiency in capital utilization, possibly due to increased debt or project costs.
Additional Key Metrics:
| Metric | Value |
|---|---|
| Market Cap | ₹ 867 Cr. |
| Current Price | ₹ 41.7 |
| High / Low (52W) | ₹ 63.9 / 28.4 |
| Stock P/E | 11.2 |
| Book Value | ₹ 18.5 |
| Dividend Yield | 0.72% |
| Debt to Equity | 0.36 |
| Industry P/E | 19.4 |
| RSI (Relative Strength Index) | 33.1 |
| EPS (Earnings Per Share) | ₹ 4.08 |
| Debt | ₹ 139 Cr. |
| Free Cash Flow | ₹ -123 Cr. |
The RSI value of 33.1 suggests that the stock is currently in an oversold zone, which may indicate a potential rebound in the near future.
Company Overview and Outlook
Hazoor Multi Projects Ltd is a growing infrastructure company specializing in real estate and large-scale construction projects. The latest work order adds to its expanding portfolio, positioning the company for long-term growth.
With a strong pipeline of projects, increasing revenue, and a focus on high-value infrastructure development, HMPL remains a key player in India’s construction industry. However, the declining profit margins and return ratios highlight the need for improved cost management and efficiency.
Conclusion
Hazoor Multi Projects Ltd’s recent ₹102 crore work order from Venkatesh Infra Projects has fueled investor confidence, leading to a 5% jump in stock price. While revenue growth remains robust, the decline in profit and key financial ratios indicates the need for strategic cost management. Investors should watch for upcoming developments, especially in execution efficiency and profitability improvements.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.