1:10 Stock Split, 1st Ever: Not IRFC, Or RVNL, But This Zero Debt Railway Stock Below Rs 500, Makes Big Update

A railway company which is set to split its shares for the first time in the ratio of 1:10, makes a big Q1 update on August 13. In Q1FY25, although this company's revenue dipped sharply, on a sequential basis, it has turned its losses into profit. This comes after the company bagged a new order. Who is it? Not railway PSU giants like IRFC or RVNL but a smallcap company KR Rail & Engineering has zero debt.

KR Rail Engineering Share Price:

The stock ended at Rs 475.20 apiece, down by 1.83% on BSE with a market cap of Rs 1,006.04 crore. The stock's 52-week high and low is at Rs 863.35 apiece and Rs 414 apiece respectively.

Its price-to-equity ratio is at 82.50x, while its return on equity is at 17.02%.

KR Rail Engineering Q1 Results:

In Q1FY25, the company bagged revenue from operations of Rs 99.10 crore, declining sharply from revenue of Rs 161.98 crore in Q1FY24 and Rs 152.95 crore in Q4FY24.

Meanwhile, in the June 2024 quarter, profit after tax stood at Rs 1.34 crore, down from Rs 3.37 crore in Q1FY24. However, sequentially, KR Rail made a massive turnaround by posting a profit compared to a net loss of Rs 3.78 crore in the March 2024 quarter.

KR Rail Engineering New Order:

KR announced that it has received a work order from Fomento Resources for Design, Consultancy and Railway approvals in Phase-I and execution of the Project on EPC in Phase-II for the provision of Railway Siding facilities in Kaley Station in Hubballi Division of South Western Railway.

The order is expected to be completed in 18 months and is for the consideration of Rs 110 crore in phase 2.

KR Rail Engineering Stock Split:

K&R Rail has announced its first-ever stock split in the ratio of 1:10. This means that the company will subdivide its 1 existing equity share having a face value of Rs 10 into ten smaller shares having a face value of Re 1 each fully paid-up.

K&R Rail said the Record Date for the subdivision of equity shares will be intimated to the Exchanges subsequently, after the approval of the resolution for sub-division by the shareholders at EGM.

The reason behind the stock split is to enhance the company's liquidity and encourage the participation of small investors by making it more affordable.

The company is expecting to complete its stock split action in approximately 3 months from the date of receipt of approval from the shareholders of the company.

About KR Rail Engineering:

K&R Rail Engineering was founded in 1998 with a vision to cater to the ever growing demand for Mass Transportation & Bulk Logistics of Goods & Materials through the Indian Railway networks.