Over 29,800% Jump In 5 Years: President of India-Owned Stock Wins Contracts From NHAI

Hazoor Multi Projects Ltd (HMPL), a leading name in Indian infrastructure, has reported strong financial results for the third quarter of FY25 (Q3FY25) along with two important monetized contracts with the National Highways Authority of India (NHAI) earned within nine months (9MFY25) period. The company with an MR of Rs 830 crore maintains its growth and operational vigor.

In its Q3FY25 results, HMPL's net sales were recorded at Rs 164.87 crore while the net profit stood at Rs 2.72 crore. The company's net sales for the 9-month period ending December 2024 stood at Rs 391.21 crore and net profit at Rs 23.20 crore. In FY24, HMPL's net sales and net profit were recorded at Rs 545 crore and Rs 64 crore respectively indicating how the company has been executing its objectives.

The recipient of a Letter of Award (LoA) from NHAI has been conferred upon Hazoor Multi Projects Ltd (HMPL) for user fee collection from the Bijora Toll Plaza in Maharashtra. This notable infrastructure firm shall manage "A" category BOOT projects whose scope encompasses, "Construction of four-lane Waranga to Mahagaon NH 361(6.62Km) along with a collection of user fees at Bijora Toll Plaza (NH 361) and maintenance of other ancillary facilities, including cleaning and upkeep of the adjoining toilet blocks. HMPL's focus on tolled collection along with highway upkeep is evidenced by this latest contract and is expected to increase significantly in the future.

Previously, HMPL has captured another important user fee collection contract from NHAI in respect of collection at the Hulikunte Fee Plaza located on Dobaspet to Dodaballapur Bypass on NH 648 in the State of Karnataka. This project is multi-year in value and is approx Rs 67.16 crore. It specifically provides for construction and fee collection over a 42 km long stretch of a four-lane highway as well as upkeep of supporting toilet facilities including consumables. This contract reinforces HMPL's position in the market vicinity and emerged from one of those fiercely contested one-year contracts supplied through electronic bidding in India.

HMPL's net sales rose by 118%, reaching Rs 153.08 crore, while net profit increased by 17% to Rs 11.02 crore in Q2FY25 against Q2FY24. In comparison with H2FY24, both half-yearly net sales and profit declined. The figure for net sales stood at 59% lower than the earlier reported, at Rs 225.16 crore in H1FY25. The profit dropped by 68%, falling to Rs 20.48 crore. Even then, investors were confident in HMPL's long-term growth, which is reflected in its market cap, standing at Rs 1,028 crore.

The company's stock was trading at Rs 0.15 five years back. Now it trades at Rs 51, which is over 29,000% increase. In a two year time period, the stock appreciated by 410%, and it gained 1,650% in three years. A p/e of 12x in comparison with the industry p/e of 22, offers considerable value in HMPL's shares.

As of December 2024, a shift is noted in FII participation. The President of India also stepped in and purchased 18,15,000 shares which is about 0.91% of the entire company. Furthermore, HMPL's equity underwent a 10:1 split in November 2024 which permits the subdivision of shares into ten shares each with a Rupee 1 face value. This improves overall liquidity and increases investor participation.

Indian multinational company HMPL focuses on the construction and maintenance of road and bridge works, flyovers and other civil works. Opposed to many competitors, HMPL takes great care in observing timelines, adhering to standards, addressing safety concerns, and ensuring quality which allows the company to foster a respectable brand name in this complex environment. It is no secret that infrastructure projects across the nation strengthen the economy and make the entire country far more accessible.

HMPL is bound to benefit from the increasing demand for infrastructure in India as they still remain aggressive in pursuing project tenders while having shown solid financial performance from previously secured high-value contracts.