Multibagger journey of Likhitha Infrastructure: 370% returns in three years

Likhitha Infrastructure Limited has delivered outstanding returns to its investors over the past three years, with its share price surging from Rs 68.45 on October 16, 2020, to Rs 327.50 on October 06, 2023, representing a remarkable increase of over 370% during this period.

For investors, this translates into substantial growth, with an initial investment of Rs 1 lakh in the company’s shares one year ago now valued at Rs 4.70 lakh.

Adding to its impressive performance, the company has recently secured a substantial order worth Rs 155.87 crore from Bharat Petroleum Corporation. This contract encompasses pipeline laying and HDD Works for the Krishnapatnam-Hyderabad multi-product pipeline project.

In Q1FY24, Likhitha Infrastructure Limited achieved a revenue of Rs 90.20 crore, marking a 10.9% increase compared to the previous quarter. Additionally, the net profit after tax for Q1FY24 stood at Rs 15.93 crore, reflecting a substantial 17.42% increase compared to the same quarter of the previous year. The company boasts a robust order book of over Rs 1,200 crore, ensuring solid revenue visibility for at least more than 1.5 years.

Notably, ace investor Ashish Kacholia holds a 1.77% stake in the company, further underlining its potential.

Likhitha Infrastructure specialises in oil & gas pipeline infrastructure services in India, focusing on pipeline network construction, associated facilities, and operations & maintenance services for City Gas Distribution (CGD) companies in India.

As of today, the stock opened at Rs 329.70, with a high and low of Rs 330.75 and Rs 324.30, respectively, and closed the trading session at Rs 326.35, marking a slight decrease of 0.17%. The stock boasts a 52-week high of Rs 342.65 and a 52-week low of Rs 176.50. With an impressive ROCE of 36.2% and ROE of 27.1%, along with a market capitalization of Rs 1,296 crore, the company continues to show robust growth potential.

Investors are advised to closely monitor this stock as it continues on its upward trajectory.

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.