Heavy buying witnessed in this railway infrastructure stock which gained over 12% today; do you hold it?

Shares of BCPL Railway Infrastructure Limited rose over 14.90% today. The stock has witnessed heavy buying activity as it announced impressive quarterly results. In the last six months, the stock has increased about 70%.

Today, the stock opened at Rs 72, with a high and low of Rs 79.70 and Rs 70.15, respectively. The stock is currently trading at Rs 78.96, which increased by 14.90%. The stock has a 52-week high of Rs 79.70 and a 52-week low of Rs 35.60. The company has an ROCE of 15.4% and an ROE of 10.0%, with a market capitalisation of Rs 123 crore.

BCPL Railway Infrastructure Limited reported a robust second quarter for FY24, with net sales decreased by 15.06% to Rs 23.27 crore, compared to Rs 27.39 crore in the same quarter last year. The company’s EBITDA experienced a significant increase of 58.44%. The net profit for the quarter stood at Rs 2.04 crore, which was Rs 1.50 crore in the previous year’s same quarter.

Performance Highlights for the company’s business segments

Railway Electrification Segment: The company’s Railway Business has improved its performance due to a favourable macro environment and efficiency improvements. The order book position as of September 30, 2023, is Rs 153.80 crore.

Merchant Exports Business: The company is taking a cautious approach to exports due to geopolitical volatility. No export orders were taken during the quarter under review.

Rice Bran Oil Extraction Project: The Rice Bran Oil project is progressing well, with an investment of Rs 27.59 crore made as of September 30, 2023. Commercial operations are expected to commence during the current financial year. The project will contribute significantly to the company’s growth.

About the company

BCPL Railway Infrastructure Limited (BCPL) is engaged in the execution of railway infrastructure development projects involving design, drawing, supply, erection and commissioning of 25KV, 50Hz single phase traction overhead equipment. Recently the company has ventured into exporting commodities such as maize and oil cakes to Bangladesh from FY2022 onwards.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.