Hazoor Multi Projects Secures Order From NHAI; Stock In Focus

Shares of Hazoor Multi Projects Ltd (HMPL) gained 2.5% today, rising to Rs 653 from the previous close of Rs 621.45. The stock hit a fresh 52-week high of Rs 639 earlier this week, reflecting growing investor confidence in the company.

On Wednesday, HMPL announced a significant win, securing an order from the National Highways Authority of India (NHAI). The company will serve as the user fee collection agency at the Mulawad Toll Plaza, overseeing a section of the NH218 highway in Karnataka. This project involves widening the highway to two lanes with paved shoulders, covering a stretch from Km 4.40 to Km 56.00 in the Bijapur-Hubli section. The total value of this contract is Rs 2.59 crore.

Earlier in the week, HMPL notified the exchange that its Board of Directors would meet on Monday, September 16, 2024, to evaluate a potential merger with Square Port Shipyard Private Limited. A "Specific Transaction Committee" will be established to oversee and ensure the smooth execution of the merger process. This move is part of HMPL's strategic growth and expansion initiatives, aimed at achieving economies of scale and diversification.

HMPL recently acquired 100% equity in Square Port Shipyard Pvt Ltd for Rs 3.91 crore. This acquisition aligns with HMPL's long-term strategy to diversify into the shipbuilding and repair industry, though limited public information is available about Square Port's operations.

In its latest quarterly results for June 2024, the company reported a sharp decline in net profit, dropping 99.61% to Rs 0.08 crore. This is a significant reduction compared to the same quarter a year ago. Revenue from operations also fell dramatically, reaching Rs 34.16 crore in Q1 FY24, down from Rs 162.40 crore in the previous quarter.

The company recently secured multiple high-value contracts, including a Rs 30 crore order from B.G. Shirke Construction Technology Pvt Ltd for excavation work at various sites, and a Rs 40 crore contract from Welspun Enterprises Limited for stacking and dewatering works. Additionally, HMPL emerged as the lowest bidder for a Rs 273.74 crore contract from MSIDC to widen and improve a road in Maharashtra.

In another major development, HMPL's Board of Directors announced a stock split in the ratio of 10:1, meaning each equity share with a face value of Rs 10 will be subdivided into 10 equity shares with a face value of Rs 1 each. The record date for this stock split has yet to be determined. This move is expected to increase liquidity and make the stock more accessible to smaller investors.

Founded in 1992, Hazoor Multi Projects Ltd has evolved from its origins in residential construction to become a key player in infrastructure development. The company primarily operates as a subcontractor on national highway projects for government agencies, including the Maharashtra State Road Development Corporation and the National Highways Authority of India. In recent years, HMPL has also ventured into the Engineering, Procurement, and Construction (EPC) contracting business. As of now, the company has a market capitalization of Rs 688 crore.