The stock market is volatile. The market started trading on Friday with a significant decline, but the market recovered from the lower levels and became positive in the afternoon. Stock-specific action is being seen in the market during the earning season. There are also reports of corporate action in many stocks, which is causing a stir in the stock.
Shares of K&R Rail Engineering on Friday rallied 16.25 percent from a low of Rs 391.20 to an intraday high of Rs 454.75. The stock has a 52-week high of Rs 800 and a lowest of Rs 303.55. Shares of K

&R Rail Engineering Ltd was trading at Rs 445.20 at 12.30 pm on Friday and the stock was witnessing good volumes at this time. The return on this railway stock has remained negative in the last one year and it has fallen by 42%. The stock rallied on Friday following news of corporate action.

K&R Rail Engineering Ltd informed that the board of directors has approved and passed the following resolutions to allot 96,00,000 equity shares of the face value of Rs 10 each as fully paid-up shares under which 96,00,000 of the 7 percent optionally convertible preference shares of Rs 10 each shall be converted into shares for a total consideration of Rs 960,00,000 to the promoter and promoter group.

Earlier, K&R Rail Engineering Ltd had secured a work order from Fomento Resources Pvt Ltd, based in Panaji, Goa, for the design, consultancy, and execution of a railway siding facility at Cali station in Hubballi division of South Western Railway on an EPC basis (Phase II) after railway approval (Phase I). The domestic order worth Rs 110 crore mandates completion of the project within 18 months. The scope of the project includes the development of extensive railway siding infrastructure.

As per the quarterly results, the company reported net sales of Rs 142.23 crore and net profit of Rs 3.18 crore in Q1FY25 as against net sales of Rs 200.10 crore and net profit of Rs 5.08 crore in Q1FY24. In its annual results, net sales grew 70 percent to Rs 662.41 crore and net profit grew 24 percent to Rs 7.79 crore in FY24 as compared to FY23.

K&R Rail Engineering Limited is in the business of laying private railway sidings on a turnkey basis. The company has a capitalization of Rs 943 crore and has recorded a good profit growth of 204 percent CAGR in the last 3 years.

This stock has given a multi-bagger return of 1,100 percent in 2 years. However, it has been silent for the last one year and has declined by 42% in this period.