A penny stock is a term used to describe stocks that trade at a relatively low price, typically below a certain threshold, such as ₹1 per share in the india . In other markets, the definition may vary, but the common characteristic is that penny stocks are low-priced securities. These stocks are often associated with small-cap or micro-cap companies, which have a lower market capitalization.
Penny stocks are known for their volatility and can experience significant price fluctuations in a short period. They are considered high-risk investments due to their lower liquidity, smaller market capitalization, and increased susceptibility to price manipulation. Investors are attracted to penny stocks because of their potential for substantial gains, but they come with a higher level of risk and may lack the regulatory scrutiny that larger stocks face. It’s important for investors to conduct thorough research and exercise caution when considering investments in penny stocks, and consulting with a financial advisor is often recommended.
Top 10 Penny Stocks Under Rs. 1
1)Shekhawati Poly-Yarn Ltd
Established in 1990, Shekhawati Poly-Yarn Ltd (SPYL) stands as a prominent player in the textile industry, crafting Texturizing Yarn, Twisting Yarn, and Knitted Fabrics for both domestic and international markets. This Indian textile company, founded and led by Mukesh Ruia, serves as the Chairman and Managing Director. Specializing in polyester texturized yarn and twisted yarn products, SPYL has carved a niche for itself in the dynamic textile landscape.
Since its incorporation on November 5, 1990, SPYL has been committed to delivering quality textile solutions to a global clientele. The company’s expertise spans the production of versatile yarns and knitted fabrics, catering to diverse market demands. With a focus on innovation and quality, Shekhawati Poly-Yarn Ltd has become a reliable name in the textile sector, reflecting its founder’s vision and leadership in steering the company’s growth and success over the years
Product Profile:
a) Sarina knitted fabrics
b) Lycra knitted fabrics
c) Bright knitted fabrics
d) Spun Lycra Knitted Fabrics
e) Cationic Fabrics
Polyester Texturized Yarn (PTY) is used in the process of weaving of fabric and also used for suiting, shirting, dress materials, saris, hosiery, knitted fabric, zipper fastener, curtain & industrial cloth as also to manufacture fancy yarn for high value dress materials and upholstery.
Export Countries:
Argentina, Israel, Morocco, Brazil, Jordan, Peru, Canada, Kenya, Thailand, Egypt, Mexico, Turkey, Bangladesh, Belgium, Srilanka, Indonesia, Vietnam, Colombia, Venezuela, Ethiopia, Poland
During FY21, the company faced severe challenges primarily due to its complete reliance on Job Work activities, compelled by the prolonged unavailability of working capital funds. This financial constraint led to substantial losses, eroding the company’s net worth and prompting banks to classify its credit facilities as Non-Performing Assets (NPA). In terms of revenue breakdown for the same period, the company generated income with 3% from Unbilled Revenue, 4% from the sale of products, 1% from Waste Sale, and a dominant 91% from Job Work activities. These financial circ*mstances underscore the significant impact of working capital constraints on the company’s operations and financial health during the specified fiscal year.
2) GTL Infrastructure Ltd
GTL Infrastructure Limited (GTL Infra), a part of the Global Group, stands as India’s leading independent telecom tower company with its headquarters in Navi Mumbai, Maharashtra. Established in 2004 under the leadership of founder and chairman Manoj G Tirodkar, GTL Infra pioneered shared passive telecom infrastructure in the country. Boasting around 28,000 towers spread across 22 telecom circles in India, the company plays a crucial role in enabling telecom service providers to deliver 2G, 3G, and 4G services nationwide. In FY 2016–17, GTL Infra achieved a revenue of Rs. 2286 crores and an EBIDTA of Rs. 1,122 crores. The board of directors, led by Chairman Manoj G Tirodkar, and the executive management team, including Milind Naik and other key members, contribute to the company’s strategic direction and operational success.
Business Overview: The company specializes in passive infrastructure sharing, focusing on constructing, owning, operating, and maintaining sites for hosting the active network components of various technologies such as 2G, 3G, 4G, IoT, and Enterprise Wireless Network. Additionally, the company offers energy management solutions. With a tower count exceeding 25,700, of which approximately 11,000 are occupied, accommodating 23,475 radiating tenants, the company boasts a tenancy ratio of 2.1 on occupied towers as of March 31, 2022.
Business Model: The business model revolves around infrastructure sharing, empowering Telecom Operators to convert their capital expenditures (CAPEX) into fixed and predictable operational expenditures (OPEX). This strategic shift allows Telecom Operators to redirect their capital towards core activities. The company’s revenue stream is generated through long-term contracts, typically spanning 5, 10, or 15 years, with Wireless Telecom Operators. These contracts, renewable at the discretion of Telecom Operators upon expiration, form the backbone of the company’s financial stability.
Services Offered: The company’s services encompass infrastructure sharing, facilitating Telecom Operators in hosting their active equipment by providing shelter space and optimal heights for antenna placement on towers. Additionally, the company offers energy management solutions, ensuring uninterrupted power on towers at predetermined costs. Leveraging various energy sources and storage solutions, the company collaborates with customers for demand management and the deployment of clean energy solutions. This comprehensive approach positions the company as a key player in the telecom infrastructure and energy management sectors.
Revenue Breakup:
In FY22, the co. generated revenue from Telecom/Network Infrastructure Facilities ~59% and Energy and Other Reimbursem*nts ~41%
Operational Issues: The company faced challenges with the shutdown or exit of 12-14 telecom operators since 2011, resulting in the loss of over 65,000 tenancies and abandonment of 14,000 towers. This led to substantial revenue losses in terms of Infrastructure Provisioning Fees/Rentals and related costs. The discontinuing operators did not fulfill contractual dues, including rents to landlords, impacting the company’s financial standing. In FY21, disgruntled landowners dismantled 1,171 unoccupied sites, and an additional 446 sites were dismantled by June 2022.
Capex: For FY21-22, the company planned an investment of approximately Rs. 100 crores for network up-gradation and revenue protection. Additionally, pending lender approval, the company requires a CAPEX investment of around Rs. 225 crores for replacement related to end-of-life equipment and approximately Rs. 82 crores for network upgradation to accommodate expected 5G technology tenancies.
Equity Shares Allotment: On February 4th, 2022, the company approved the allotment of around 21 lakh equity shares following the conversion of 328 Interest Bearing Convertible Bonds (Series B2 Bonds) amounting to US$ 0.328 Mn. at a conversion price of Rs. 10 per share. This move signifies a financial transaction aimed at managing the company’s capital structure.
3) Siti Networks Ltd
Formerly known as Wire and Wireless (India) Limited (WWIL), Siti Networks Ltd operates as a prominent multi-system operator (MSO) in India, backed by the Essel Group, which currently holds a 6.1% minority stake. The company’s primary focus is on delivering digital cable television services throughout India, and its headquarters are located in Noida, Uttar Pradesh.
History: WWIL came into existence through the de-merger process involving Zee Entertainment Enterprises Limited (ZEEL), formerly Zee Telefilms Limited (ZTL). ZEEL, the publicly listed flagship company of the Zee Group, underwent a Scheme of Arrangement approved by the Mumbai High Court. This arrangement, finalized on March 31, 2006, resulted in the transfer of all cable TV distribution business from ZEEL and Siti Cable Networks Limited (Siti Cable) to WWIL. Siti Cable, initially a 100% subsidiary of Zee Telefilms Limited, commenced its cable operations in June 1994. Notably, the company underwent a name change, evolving from Wire and Wireless (India) Limited to SITI Cable Network Limited on September 5, 2012, and eventually to its current name, SITI NETWORK LIMITED.
SITI NETWORKS LIMITED (SITINL), a member of the Essel Group, operates as a Multi-System Operator (MSO) with an extensive network infrastructure. The company boasts 15 digital head ends and a vast network spanning 33,000+ kilometers of optical fiber and coaxial cable. This infrastructure includes high-speed 1.2 Gbps links across India, facilitating the transmission of digital TV signals. SITINL collaborates with over 24,000 Local Cable Operators (LCOs) nationwide, forming a robust partnership network.
With a service footprint covering approximately 800 locations and their surrounding areas, the company is strategically positioned. SITINL extends its services through 500 IP points, effectively catering to a broad customer base of over 45 million active users. This widespread reach allows the company to deliver cable services efficiently, meeting the diverse entertainment needs of its vast customer community. As an integral part of the Essel Group, SITINL plays a crucial role in the digital television landscape, combining advanced technology and a vast network to provide quality cable services across the country.
Product & Services:
a)Digital & Analogue Cable
Television
b)Broadband and Local
Television Channels
c)Video on Demand
d)HD Services
e)Pay per View
f)Over-The-Top content
g)Electronic Programming Guide
h)Gaming through a Set Top Box
i)IoT Ready Networks with security camera and surveillance services
j)Business solutions in the ILP andILL domains
Product & Services: SITI NETWORKS LIMITED provides a diverse range of products and services to cater to the evolving needs of its customers. This includes both digital and analog cable television, offering a comprehensive entertainment experience. The company also extends its offerings to broadband services and local television channels, ensuring a seamless connectivity experience for users. Additionally, SITI NETWORKS provides Video on Demand, HD services, Pay per View, Over-The-Top content, Electronic Programming Guide, and even gaming through a Set-Top Box. Notably, the company has embraced the future with IoT-ready networks, integrating security camera and surveillance services. In the business domain, SITI NETWORKS offers solutions in ILP and ILL domains, showcasing its versatility.
Partner Platform: SITI NETWORKS operates a partner platform accessible through online mediums like an Android application and a website, as well as through an offline medium via a call center. Leveraging its DOCSIS + GPON hybrid technology, the company seamlessly integrates cable and broadband services, providing an enhanced and integrated experience for its users.
Revenue Breakup – FY23: In the fiscal year 2023, SITI NETWORKS’ revenue exhibited a diversified composition. Approximately 68% of the revenue came from subscription income, underlining the significance of its customer base. Advertisem*nt income contributed around 11%, while carriage income constituted approximately 19% of the revenue. Other operating revenue made up the remaining 2%, reflecting the company’s multi-faceted approach in generating income across various streams. This diversified revenue breakdown underscores SITI NETWORKS’ resilience and adaptability in the dynamic media and entertainment industry.
4) Excel Realty N Infra Ltd
Excel Realty N Infra Limited, established in 2003 and headquartered in Mumbai, is a public company primarily engaged in information technology (IT)-enabled businesses. Specializing in customer care services, including outbound sales and marketing, the company focuses on traded goods and civil construction as key products and revenue segments. Despite a below-average financial track record over the past 10 years, as per MoneyWorks4Me, the company is highlighted as virtually debt-free by Finology, boasting a favorable PEG ratio of 0.37.
As of December 27, 2023, Gov Capital reports the stock price of Excel Realty N Infra Ltd at $0.420, signaling a downtrend in asset value over the past year. The company’s unique positioning in IT-enabled services and its debt-free status underscore potential areas for growth and financial stability. However, investors may consider the stock’s recent trend as part of their decision-making process.
Services Offered:
a) IT/BPO Services: The company’s IT & BPO segment specializes in providing customer care services and aiding clients in managing their workflow. Offering both inbound and outbound services, the company, however, reported no revenue in FY23.
b) General Trading: Engaging in general trading, the company generated revenue of 5.2 crores in FY23, showcasing its diverse business portfolio.
c) Infrastructure Activity: With a revenue of 1.23 crores in FY23, the company excels in designing, developing, and constructing infrastructure projects. Notably, it follows a robust business model, including residential and annuity businesses.
Projects Undertaken:
a) Collaborating with M/s Siliconn Infracon Private Limited, the company ventured into the development of agriculture land in South 24 Parganas, West Bengal, covering multiple sites such as Danapur, Kumar Pukur, Daria, Hatpukuria, Kecherkur, Chalta Beria, Chuprijhara, etc.
b) Successfully completing internal stormwater drain surface work for Arshiya International Ltd in its FTWZ project at Sai Village, in collaboration with M/s Coastal Projects Ltd.
c) Undertaking the construction of intake at Modak Sagar Tunnel, extending from Modak Sagar to Bell Nallah, and the pipeline from Bell Nallah to Wye-branch, in collaboration with NSB Infrastructure Ltd.
d) Executing work orders from EMTA Coal Limited in collaboration with M/s Safal Infra Projects Ltd for coal mining activities and related projects. These ventures underscore the company’s prowess in diverse infrastructure projects, ranging from agriculture to mining.
5) Antarctica Ltd
Antarctica Limited is a company that manufactures packaging materials and prints. The company is based in India and produces conventional and lined cartons, paper cups, and other products. Antarctica Limited also provides pre-press design and prints books, labels, journals, greeting cards, and other materials
Product Portfolio:
a) The company’s product range includes folding cartons designed for a variety of contents such as powders, granulated materials, and liquids. These cartons come in different styles like lock bottom, reverse tuck-in boxes, and cartons with tubes inside.
b) Offering hard tag double-chambered tea bags, the company caters to the tea packaging industry with or without outer envelopes for added convenience.
c) The company specializes in the production of printed hard tags designed for high-speed tea bag making. These tags come in two sizes, 23mm x 28mm and 28mm x 32mm, ensuring versatility in tea bag packaging.
d) Diversifying its product line, the company manufactures high-quality printed paper cups, including those with PE coating, meeting various packaging needs.
e) Additionally, the company provides a comprehensive array of printed materials such as books, brochures, labels, posters, etc. All products maintain high-quality standards, with in-house binding and finishing services.
Services Offered:
a) In the pre-press stage, the company supports design development according to customer requirements. This involves services like scanning, color separation, designing, machine proof, and output at a high resolution of 3600 DPI.
b) Leveraging computer-controlled multicolor offset printing, the company ensures a high-quality and resolution printing process.
c) Engaging in contract packaging, the company specializes in packaging tea in double-chambered tea bags with hard tags, offering flexibility with or without outer envelopes.
d) For consumer packaging needs, the company provides mechanized packing solutions for consumer products, accommodating packages of up to 500 grams. This comprehensive range of products and services positions the company as a versatile player in the packaging and printing industry.
Manufacturing Unit:
Company’s Packaging/Printing Unit is located atFalta Export Processing Zone[Free Trade Zone] in Kolkata. Being situated in the export zone, company is allowed toimport duty free.
Exports countries: Sri Lanka, Middle-East, UAE, Russia, , Nepal, Khazakhistan, etc.
6) Setubandhan Infrastructure Ltd
Setubandhan Infrastructure Limited (SIL) is a Nashik-based company offering comprehensive engineering, procurement, and construction services. Originally incorporated as Prakash Constrowell Private Limited on January 4, 1996, the company is now listed on the National Stock Exchange of India under the ticker SETUINFRA.
Focused on providing essential infrastructure solutions, SIL has established itself as a key player in the industry. As of March 31, 2023, the company reported a total revenue of Rs 70.53 Cr, showcasing its financial strength and market presence. Additionally, the earnings for the same period amounted to Rs 0.09 Cr, highlighting the company’s consistent performance in delivering projects and meeting client needs.
Headquartered in Nashik, India, Setubandhan Infrastructure Limited continues to contribute significantly to the engineering and construction landscape. With a track record spanning several years, the company’s presence on the stock exchange reflects its commitment to transparency and growth in the dynamic infrastructure sector.
Services Offered:
a) Setubandhan Infrastructure Limited excels in infrastructure development, specializing in the construction and maintenance of diverse projects. This includes roads, highways, bridges, industrial parks, workshops, hospitals, and educational institutions. Notably, the company engages in projects using the public-private partnership (PPP) model, showcasing its versatility in delivering essential public infrastructure.
b) The company is actively involved in civil construction projects, particularly in the development of government staff quarters, hostel buildings, and auditoriums. This underscores its commitment to supporting public sector initiatives and contributing to community facilities.
c) Setubandhan Infrastructure extends its expertise to residential and commercial real estate construction. This involves the creation of living spaces and commercial establishments, showcasing its capabilities in meeting the diverse needs of both individuals and businesses.
d) With a focus on integrated engineering, procurement, and construction services, the company provides end-to-end solutions. This comprehensive approach ensures seamless execution and delivery of projects, meeting the highest industry standards.
e) Setubandhan Infrastructure is involved in the construction of buildings on its own account basis or through fee or contract arrangements. This flexibility allows the company to adapt to various project structures and contribute to the development of infrastructure through project supply. Overall, Setubandhan Infrastructure Limited stands as a reliable partner in the construction and development landscape, offering a broad spectrum of services to meet the evolving needs of its clients.
Projects Undertaken:
a) EPC: Setubandhan Infrastructure Limited has successfully executed a range of Engineering, Procurement, and Construction (EPC) projects. This includes the construction of Ashramshala Buildings and Hostel Buildings at four sites in Taluka Junnar, showcasing the company’s commitment to educational infrastructure. The company has also played a pivotal role in developing the College of Engineering for NDMVP Samaj in Nashik, contributing to the enhancement of educational facilities. Another notable project involves the construction of the Police Training School at Sangli, emphasizing Setubandhan Infrastructure’s role in supporting law enforcement training infrastructure. Additionally, the completion of the Pinnacle Mall in Nashik reflects the company’s versatility in delivering commercial projects, further solidifying its position as a key player in EPC projects.
b) Real Estate & Commercial: Setubandhan Infrastructure Limited has undertaken impactful projects in the real estate and commercial sectors. The Parksyde complex, spanning 8.75 acres, stands as a testament to the company’s prowess in real estate development. Comprising two rows of towers, the complex features a total of 528 flats, including 144 2BHK and 384 3BHK flats. This residential project reflects Setubandhan Infrastructure’s commitment to creating modern and sustainable living spaces, contributing to the real estate landscape. The successful completion of these projects showcases the company’s dedication to delivering high-quality and diversified developments in both the public and private sectors.
7) Godha Cabcon & Insulation Ltd
Godha Cabcon & Insulation Ltd. is a prominent Indian company specializing in the manufacturing of electronic cables and conductors. Renowned for its expertise, the company stands out as a leading producer of ACSR Conductor wire and AAAC Conductor. These products are meticulously designed to meet rigorous international standards and find applications in both primary and secondary distribution systems.
The company’s commitment to quality and precision is evident in its range of offerings, which cater to the diverse needs of industries relying on robust and reliable electrical components. ACSR (Aluminum Conductor Steel Reinforced) and AAAC (All Aluminum Alloy Conductor) conductors play pivotal roles in electrical infrastructure, and Godha Cabcon & Insulation Ltd. ensures that its products adhere to the highest industry benchmarks.
With a registered address at No. 36-D, Sector B, Sanwer Road, Indore, Madhya Pradesh 452006, the company strategically positions itself to serve the dynamic demands of the market. This location underscores its accessibility and presence in the industrial landscape, contributing to its reputation as a trusted provider of quality electronic cables and conductors in India.
Products include:
- All Aluminum Alloy Conductor
- Aluminum Conductor
- Steel Reinforced
- Armoured and Unarmoured Cable
8) Ortel Communications Ltd
Ortel Communications Ltd., established in 1995, is a Small Cap company that specializes in providing cable television and high-speed broadband services in the states of Odisha and Chhattisgarh, India. The company’s offerings include both analog and digital television services, ensuring a comprehensive entertainment experience for its customers. Alongside television services, Ortel Communications provides high-speed broadband internet access and voice-over services. With a strategic focus on these key areas, the company has positioned itself as a prominent player in the telecommunications sector, catering to the evolving needs of its customer base in Odisha and Chhattisgarh.
Ortel Communications Ltd. operates as a Multi System Operator (MSO) with a significant presence in various Indian states, including Odisha, Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Telangana, and West Bengal. The company specializes in providing comprehensive cable television and high-speed broadband services, establishing a robust two-way communication network to facilitate ‘Triple Play’ services encompassing video, data, and voice capabilities. With a strategic emphasis on the ‘Last Mile’ network, Ortel Communications ensures efficient control and focus, delivering Digital and Analog Cable Television, Broadband services, and a range of Value Added Services (VAS). This approach positions the company as a reliable provider of integrated telecommunications solutions, catering to the diverse entertainment and communication needs of its customer base across multiple states in India.
Ortel Communications Ltd. offers a diverse range of services to meet the entertainment and communication needs of its customers.
a) Cable Television: The company provides Digital Cable Television Services, including various Value Added Services (VAS) such as HD services, near video on demand (NVoD), gaming, Electronic Programming Guide (EPG), and local content. This comprehensive cable television offering ensures a rich and varied viewing experience for subscribers.
b) Broadband Services: Ortel Communications caters to both the Home and Corporate segments with its broadband services. The Home segment utilizes DOCSIS technology for broadband access, while the Corporate segment benefits from high-speed internet access through fiber to their premises (FTTX). This dual approach ensures that both residential and business subscribers enjoy reliable and efficient broadband connectivity.
c) Infrastructure Leasing: The company engages in Infrastructure Leasing, utilizing its Independent Fiber Leasing (IFL) to lease Dark Fiber, both existing and new, to telecom giants and corporate clients. This strategic initiative contributes to the overall revenue stream while facilitating the expansion of telecommunications infrastructure.
In the context of the Corporate Insolvency Resolution Process (CIRP), Ortel Communications Ltd. has undergone this process based on an application by Sony Pictures Networks India Pvt. Ltd. During this period, the powers of the Board of Directors are suspended, and the Resolution Professional, Mr. Srigopal Choudhary, exercises authority in accordance with the NCLT order dated November 27, 2018.
Looking at the revenue breakdown for FY22, the company derived its revenue from various sources. Cable Subscription Fees accounted for approximately 68%, emphasizing the significance of its cable television services. Other revenue sources included Income from Infrastructure Leasing (7%), Internet Subscription Fees (6%), Income from Broadcaster Incentive (5%), Connection Fees for Cable TV (5%), Signal Uplinking Income (4%), Channel Carriage Fees (4%), and POM Income (2%).
This diversified revenue structure showcases Ortel Communications’ ability to generate income from multiple streams, reinforcing its position as a key player in the telecommunications industry.
9) Sanwaria Consumer Ltd
Sanwaria Consumer Limited is a food processing company that manufactures and sells rice, edible oil, and other staple food products. The company was incorporated in 1991 and is part of the Sanwaria Group.
Product Portfolio:
Sanwaria Consumer Limited (SCL) operates as an FMCG food processing company within the Sanwaria Group. The company specializes in the manufacturing and sale of various food products, including Rice, Edible Oil, Pulses, Sugar, Soya Chunks, Wheat Flour, Rice Flour, Salt, Suji, Maida, Besan, Cattle Feed, Oil, Poha, Daliya, Spices, and more. This diverse product portfolio positions SCL as a comprehensive player in the food industry.
Manufacturing Capacity:
SCL boasts three manufacturing units in Madhya Pradesh, equipped with substantial production capacities. The Solvent Extraction Plant has a capacity of approximately 2500 TPD, the Soya Refinery can process around 250 TPD, and the Rice Milling Plant has a capacity of about 500 TPD. This extensive manufacturing infrastructure underscores the company’s capability to meet substantial production demands.
International Presence:
Recognized as a Government Export Trading House, SCL has established a global footprint. The company has a 100% subsidiary in Singapore, emphasizing its commitment to international trade and expansion.
Brand Outlets:
Venturing into direct retail, SCL has introduced ATM-sized retail outlets under the brand name Sanwaria Kirana. These outlets offer a variety of brands, including Sanwaria, Narmada, Sulabh, and Nashira. This retail initiative enhances the company’s reach and strengthens its presence in the consumer market.
Revenue Breakup:
In the fiscal year 2021, SCL’s revenue streams were diversified. The sale of Refined Oil accounted for approximately 15% of the revenue, Basmati Rice constituted around 2%, Other products contributed 3%, Interest Income represented 3%, and Other Income formed the majority at 77%. This balanced revenue distribution highlights the company’s ability to generate income from various sources.
Future Outlook:
SCL’s future outlook includes strategic initiatives aimed at sustainability and growth. This encompasses reducing packaging weight/volume, introducing a new range of differentiated products of international quality, enhancing process and resource use efficiencies, and expanding the scope of agri-inputs options. These forward-looking strategies position SCL for long-term success and relevance in the ever-evolving food industry.
Payment Default:
The company faced financial challenges, defaulting on loan payments totaling approximately ₹981 Crores borrowed from eight banks. This financial strain is a significant hurdle that the company needs to address to regain stability.
CIRP:
Since May 29, 2020, SCL has been undergoing the Corporate Insolvency Resolution Process (CIRP) as mandated by the National Company Law Tribunal (NCLT), Indore Bench, Ahmedabad. This legal status indicates the company’s efforts to restructure and resolve financial issues under the guidance of the insolvency resolution process.
10) AJR Infra & Tolling Ltd
AJR Infra & Tolling Ltd. operates as an infrastructure project development company with a focus on roads, bridges, ports, and hydro power projects. Founded by Abhijit Jagdish Rajan on April 23, 2001, and headquartered in Mumbai, India, the company has played a significant role in shaping India’s infrastructure landscape.
Formerly known as Gammon Infrastructure Projects Limited (GIPL), the company underwent a name change in August 2021, rebranding as AJR Infra & Tolling Ltd. This transformation reflects the company’s commitment to evolution and adaptation in the dynamic infrastructure sector.
Gammon India Limited, a prominent player in the infrastructure domain, promoted AJR Infra & Tolling Ltd. in 2001. The objective was to actively participate in the development of infrastructure projects, particularly those operating on a public-private partnership (PPP) basis. Over the years, the company has demonstrated its expertise in executing and managing projects that contribute to the nation’s growth and development.
With a strategic focus on diverse infrastructure elements such as roads, bridges, ports, and hydro power projects, AJR Infra & Tolling Ltd. continues to be a key player in India’s journey towards robust and modern infrastructure. The company’s endeavors align with the broader national goal of creating sustainable and efficient transportation and energy networks.
Business Overview:
AJR Infra & Tolling Ltd. (AJRITL) stands as a dynamic infrastructure project development company, strategically incorporated by Gammon India Limited. The primary objective of AJRITL is to actively engage in the development of infrastructure projects, with a strong emphasis on the public-private partnership (PPP) model. The company boasts diverse investments across multiple sectors, including Roads & Expressways, Ports, HydroPower, Urban infrastructure, Airports, Special Economic Zones, Water and Wastewater management, Railways, Power Transmission lines, and Agricultural Infrastructure. This broad spectrum of investments signifies AJRITL’s commitment to contributing significantly to India’s infrastructural growth.
Services Offered:
AJRITL excels in providing comprehensive services such as Project Development, Project Advisory, and Sector-Specific Operations & Maintenance. These services showcase the company’s versatility and expertise in navigating the complexities of infrastructure projects, from inception to operation and maintenance.
Current Projects:
AJRITL has a robust portfolio encompassing projects at various stages of development across critical sectors. Notable projects include those in the Road Sector, Port Sector, Power Sector, and Real Estate Sector. These projects, including Vizag Seaport Private Limited, Pravara Renewable Energy Limited, Cochin Bridge Infrastructure Company Limited, Sidhi Singrauli Road Project Limited, Indira Container Terminal Private Ltd, and Youngthang Power Ventures Ltd, exemplify the company’s diversified and impactful contributions.
Revenue Breakup – FY22:
In the fiscal year 2022, AJRITL’s revenue distribution reflects its varied interests. Approximately 12% of revenue is derived from Power projects, a significant 82% from Port operations, and the remaining 6% from Other Operating Revenue. This balanced revenue composition demonstrates the company’s ability to harness opportunities across multiple sectors.
Financial Issues:
Despite its strengths, AJRITL faces financial challenges, defaulting on debt servicing and overdraws in fund-based cash credit limits due to liquidity strains. Notably, the company acknowledges defaults at both standalone and Special Purpose Vehicle (SPV) levels. Some SPVs are undergoing Insolvency Resolution Process, reflecting the broader financial complexities.
Subsidiaries in CIRP:
Several subsidiaries, including Patna Highway Projects Limited, Rajahmundry Godavari Bridge Limited, Sikkim Hydro Power Ventures Limited, and Pravara Renewable Energy Limited, are currently under Corporate Insolvency Resolution Process (CIRP). This underlines the need for strategic financial management and resolution.
Sale of Shares and Shares Pledged:
AJRITL has completed the sale of equity shares in Vizag Seaport Private Limited, reducing its shareholding from 73.76% to 40.76%. Simultaneously, the promoters have pledged 100% of their shareholding, indicating a commitment to the company’s objectives.
Focus:
AJRITL’s strategic focus centers on the expedited execution of projects. The company is actively working to streamline project development cycles, aiming for operational efficiency and revenue contribution. Exploring opportunities in Operations, Maintenance, and Transfer (OMT), as well as engaging in hybrid annuity projects, reflects the company’s agility in adapting to market dynamics and pursuing growth.
In summary, AJR Infra & Tolling Ltd. is a multifaceted player in India’s infrastructure development, navigating challenges with resilience and maintaining a commitment to contributing to the nation’s growth and development.
Investing in penny stocks, those priced below Re. 1, can be tempting due to their potential for significant returns. However, it’s crucial to recognize the high-risk nature of these investments. These stocks typically belong to low-market-cap companies, making them susceptible to price manipulation and extreme volatility. Before considering such investments, it is strongly advised to consult with a financial advisor who can provide personalized guidance based on your financial goals and risk tolerance. Being aware of the associated risks and seeking professional advice helps in making informed decisions and navigating the unpredictable nature of penny stocks.
