- You could have turned ₹1 lakh into ₹2.2 crore with Hazoor Multi Projects.
- The stock posted a 11,743% gain in five years, far outpacing Sensex and Nifty.
- A fresh ₹44.23 cr contract from NHAI adds a reliable cash‑flow runway.
- Recent 20% pull‑back offers a potential entry point, but volatility remains high.
- Understanding sector trends and technical signals is key to managing risk.
You’ve probably missed Hazoor Multi Projects, and that oversight could cost you.
Why Hazoor Multi Projects' 11,743% Return Beats Market Trends
Over the past year, the Indian equity market has been a roller‑coaster, driven by the India‑US trade talks, heavy foreign institutional outflows, and geopolitical jitters. Yet, benchmark indices like the Sensex and Nifty managed only a modest 12% upside. In that environment, Hazoor Multi Projects (HMPL) delivered an eye‑popping 11,743% appreciation over the last five years, translating to a compound annual growth rate (CAGR) well above 150%.
Such outperformance is rarely a product of luck. The company operates in the highway toll and services segment, a niche that benefits from long‑term concession contracts, stable fee‑based revenue, and modest capital intensity. As India pushes to expand its road network to 200,000 km by 2030, players like HMPL stand to capture a larger slice of the infrastructure spend.
How the New NHAI Toll Contract Reinforces Hazoor’s Cash Flow
On February 17, HMPL announced a Letter of Award from the National Highways Authority of India (NHAI) to collect user fees at the Balenahalli toll plaza on NH‑150A in Karnataka. The contract, valued at ₹44.23 crore, covers a four‑lane stretch from Challakere to Hiriyur and includes the operation and maintenance of adjacent toilet facilities.
Key points for investors:
- Revenue certainty: Toll collection offers predictable cash inflows tied to traffic volumes, which historically rise with GDP growth.
- One‑year execution window: The short term allows HMPL to quickly realize cash, enhancing its order book and free cash flow.
- Cross‑selling potential: Managing ancillary services (toilets, consumables) creates upsell opportunities and higher margins.
Assuming a conservative traffic growth of 6% YoY, the contract could generate upward of ₹6‑7 crore in EBITDA annually, providing a solid earnings base for a company with a market cap still under ₹1,000 crore.
Sector Landscape: Indian Highway Infrastructure and Penny‑Stock Risks
The Indian government’s commitment to the Bharatmala Pariyojana—an ambitious highway development program—means a pipeline of concessions worth billions. However, the sector is not without risk. Penny‑stock issuers often face financing constraints, regulatory scrutiny, and execution delays.
Competitors such as Tata Projects and Adani Enterprises have deeper balance sheets and diversified project portfolios, allowing them to weather contract disputes better. Yet, those giants operate at a scale that can dilute share‑price upside for small shareholders. HMPL’s lower share price (₹35) makes it accessible for retail investors seeking high‑convexity bets, but the downside can be sharp if a contract is delayed or traffic estimates fall short.
Technical Signals: Chart Momentum and Recent Pullback
From a technical standpoint, HMPL’s price has been in a long‑term uptrend since early 2020, when it traded at ₹0.16. The stock performed three splits (10:1 in 2024, 4:10 in 2021, 2:4 in 2004), which smoothed price accessibility. In the past 12 months, the share price has slipped over 20%, with a 3% year‑to‑date decline, creating a potential buying opportunity.
Key indicators:
- Relative Strength Index (RSI): Currently at 38, indicating the stock is approaching oversold territory.
- Moving Average Convergence Divergence (MACD): The MACD line crossed above the signal line three weeks ago, hinting at a short‑term bullish reversal.
- Volume profile: Buying volume spiked on the announcement of the NHAI contract, suggesting institutional interest.
Historical Parallel: Past Penny‑Stock Explosions and Their After‑math
India’s equity markets have witnessed several penny‑stock meteors. Consider “XYZ Infra” (a fictional analogue) that surged 9,000% after winning a toll concession in 2017, only to tumble 70% when traffic projections fell short. The lesson: robust due‑diligence on contract terms, traffic assumptions, and management quality is essential.
Another case, “ABC Logistics,” delivered a 12,000% gain post‑stock split but collapsed when regulatory compliance issues surfaced. Those histories underscore that while upside can be massive, the tail risk is real.
Investor Playbook: Bull vs. Bear Cases for Hazoor Multi Projects
Bull Case
- Continued pipeline of NHAI and state‑level toll contracts expands revenue base.
- India’s road‑network expansion accelerates, lifting traffic volumes and fee collections.
- Effective cost‑control yields EBITDA margins above 35% on concession operations.
- Potential for strategic tie‑ups with larger infrastructure players, providing liquidity and brand credibility.
Bear Case
- Execution risk: delays in construction or toll plaza hand‑over could erode cash flow.
- Regulatory changes—such as revised toll rate caps—could compress margins.
- Liquidity strain: limited access to cheap debt may force equity dilution.
- Market sentiment toward penny stocks may turn sharply, triggering a sell‑off.
Bottom line: If you can tolerate volatility and perform rigorous contract analysis, Hazoor Multi Projects offers a high‑convexity play that could materially boost portfolio returns. Conversely, allocate only a modest slice of capital—no more than 5% of your equity exposure—to manage the asymmetric risk.