Bharat Global Developers (previously Kkrrafton Developers) is a lesser-known IT Peripherals and Equipment entity that trades as a smallcap fund. Recently, the Multibagger stock achieved 2300% YTD returns, hitting the upper circuit for 14 days straight. The company, which is based in Dubai, operates in the green energy, engineering, aerospace, and agritech sectors.
The share opened for trade on Monday at Rs. 1,334.40, a 5% jump from its previous close of Rs. 1270.90. Here, we discuss what is causing this surge and why it matters for investors.
What is Driving this Surge?
Various factors contribute to the share achieving such high returns. The Dubai-based infrastructure firm recently bagged a project worth Rs. 251 crores. The scope of this project includes processing and supplying precious stones, such as rubies, diamonds, and emeralds. The company’s ability to secure such a high-worth project alone shows how strong it is financially, boosting investor confidence significantly and fueling its rally.
Similarly, various other factors also influence the kind of returns that the stock has managed to bag, including the company offering bonus stocks in an 8:10 ratio and revenue growth of 300% compared to the previous quarter. Substantial increases in profits also contribute to this upward tick, which the company has managed to achieve in the same quarter.
So, overall, these numbers indicate Bharat Global Developers’ robust financials, and the stock has garnered a largely positive market sentiment, which is also a major booster.
1:10 Stock Split, 10:8 Bonus Shares
Bharat Global’s strategy for growth also includes a one-to-ten stock split, which means that the face value of each share, which is Rs. 10, will now become Rs. 1, whereas the value of each equity at the rate of 1 will be converted to 10. With this split, shareholders also got eight additional shares for every ten shares they had, marking the company’s distribution of bonus shares in the ratio of 10:8. That means that the company is going strong financially and remaining committed to investors.
Investor Perspective
The announcement that the infrastructure development company has bagged a project worth Rs. 251 crores has significantly driven the recent surge. However, some analysts say that the gains are only for the short term, and investors must be wary of the volatility that such spikes can create. As for long-term investors, the precious stones and metals project worth Rs. 251 crores alone should be worth considering the stock, not to mention the strong financials Bharat Global has maintained.
Still, it would be better to do some research, particularly regarding the company’s competitors and track record. Investors might also want to look at industry trends before they consider investing in a stock like Bharat Global Developers, given that it is a new entrant in the segment.
Takeaway
Bharat Global Developers has also bagged a similar project worth Rs. 120 crore from Reliance Industries. That project involved designing and building a high-capacity Fluid Catalyzer Cracker (FCC) unit, which shows the company’s stringent engineering and operational principles and deep concern for the environment.
The infrastructure development company based in Dubai has secured high-profile projects and is going strong financially, given that it has offered bonus shares and has a generally positive market outlook. All of these make this stock worth considering. However, as a precaution, investors must pay attention to the high volatility of such sudden spikes and those from overvaluation.
Bharat Global Developers
Multibagger Stock
Share
