Shares of a railway company touched its all-time high of ₹ 835.00 apiece on the Bombay Stock Exchange (BSE) on Wednesday’s early trades. However, it slipped into the red soon after. Its share price dropped by 5 percent to 791.45 (intraday low), as compared to its previous closing price of ₹ 801.50, and by 8.81 percent from its record high.
K&R Rail Engineering is engaged in carrying on the business of laying private Railway sidings on a turnkey basis. Its area of services includes engineering, procurement, construction and commissioning.
According to an exchange filing, the company’s board will meet on Saturday, September 16, 2023, at 04:00 PM to consider the conversion of warrants into equity shares of the company to the promoters and non-promoters, subject to the depositing the balance outstanding amount for conversion of warrants into the equity shares of the company, among other matters.
The company’s share price increased by a whopping 2819.58 percent in the past year to deliver multibagger returns, as its share price increased from ₹ 28.60 to ₹ 835.00. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 29.19 lakhs today!
With a market capitalization of ₹ 1,265 crores, K&R Rail Engineering is a small-cap company. It has a low return on equity of 10.70 percent and an ideal debt-to-equity ratio of 0.00. Its shares were trading at a price-to-earnings ratio (P/E) of 199.88, which is higher than the industry P/E of 25.31, indicating that the stock might be overvalued as compared to its peers. The company’s promoters hold a 61.42 percent stake in the company followed by retail investors with 38.58 percent.
Written by Simran Bafna
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