Penny stock below Re 1 hits upper circuit amid relief rally in Indian stock market

Sharanam Infraproject share price was locked in at 5% upper circuit on Friday, amid a rally in Indian stock market. Sharanam Infraproject shares were up 5% at ₹0.43 apiece on the BSE.

Building materials and real estate services provider Sharanam Infraproject and Trading announced that its board of directors has approved the incorporation of a Wholly Owned Subsidiary (WOS) in the United Arab Emirates (UAE) with a proposed investment of up to ₹40 crore.

This proposed subsidiary will serve as the Company’s strategic international arm and will be incorporated under the applicable legal framework in Dubai, UAE, Sharanam Infraproject and Trading said in a regulatory filing on June 19.

The company proposes to invest approximately AED 15.5 million to AED 18 million (equivalent to ₹35 – 40 crore) over the next 6–9 months, including working capital and deal facilitation costs.

The subsidiary aims to acquire strategically located land parcels and subsequently resell them to larger developers or institutional buyers at modest margins. The company aims to operate through a low-risk, asset-light structure, ensuring minimal exposure on the parent company’s balance sheet, quick capital rotation and sustainable and scalable cash flows, the company said.

In February 2025, the company raised ₹48 crore through rights issue to fund its expansion plans including working capital requirements.

For the financial year 2024-25, Sharanam Infraproject and Trading reported net profit of ₹5.08 crore, multifold growth as compared to net profit of ₹3 lakh in the corresponding period last year. Revenue for FY25 also rose to ₹37.4 crore as compared to ₹1.76 crore in FY24.

Sharanam Infraproject Share Price Performance

Sharanam Infraproject share price has fallen 4% in one month, and has declined 42% in three months. The penny stock has dropped 58% on a year-to-date (YTD) basis, while it has plunged 20% in one year and 44% over the past five years.

At 1:50 PM, Sharanam Infraproject share price was still locked at 5% upper circuit of ₹0.43 apiece on the BSE.

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