Vijay Kedia’s latest stock pick jumped over 200% in just 7 months. Here’s all you need to know

A small-cap infrastructure and engineering firm has been buzzing on Dalal Street due to its good performance in the first half of FY24, robust share price movement from its 52-week low, and the entry of a superstar investor in the stock during in Q2. This is Rs 900-crore firm Om Infra.

Latest shareholding data showed that Mumbai-based investor Vijay Kedia-owned Kedia Securities lapped up over 2.50 per cent stake, or 24,65,912 shares in the company during the July-September quarter.

Meanwhile, the company reported a consolidated net profit of Rs 37.97 crore for the half year ended September 30, against a loss of Rs 3.50 crore in the corresponding period last year. Consolidated gross sales jumped to Rs 546.60 crore in H1FY24, up 125 per cent YoY. Following the developments, shares of the company have climbed 222 per cent to Rs 95.39 on October 30 against its 52-week low of Rs 29.66 scaled on March 28. The company was formerly known as Om Metals Infraprojects.

The company in a conference call in May said that it has expanded operations in new markets and have backed new hydro projects also that have resonated well with their clients. “We have remained focused on our hydro business, which is our core strength. In the last four years or five years, we have been building a strong order book in our core business, which has grown by more than 4 times since March 2018 to March 2023, which currently stands at over Rs 3,000 crore. The company is placed well in hydro business by providing hydro-mechanical equipment, which is our monopoly business, which also includes the order book now of Jal Jeevan Mission, we bagged first-ever order in FY2022,” Vikas Kothari, MD and CEO, Om Infra said in May.

“Since bagging our new order book, the company’s execution run rate has also improved over the course of the past few years, it has helped in generating higher revenue in the engineering division, growing from around Rs 230 crore to over Rs 700 crore, which is a phenomenal growth of over 200 per cent from FY21 to FY23, in the engineering business, which is our core business,” Kothari said.

For the latest quarter ended September 2023, Om Infra on October 26 posted a net profit of Rs 23.68 crore for the quarter ended September 30 against a loss of Rs 9.23 crore in the corresponding quarter last year.

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