Beware of this penny stock under Re 1: Civil construction EPC company defaults for 3 loans aggregating to 125.89 crore!

DSIJ Intelligence-1 / 18 Jul 2025/ Categories: Penny Stocks, Trending

Beware of this penny stock under Re 1: Civil construction EPC company defaults for 3 loans aggregating to 125.89 crore!

The stock often suffers from low liquidity, a lack of transparent financial information and susceptibility to pump-and-dump schemes.

Dharan Infra-EPC Ltd has disclosed defaults on three loans, aggregating to a total of Rs 125.89 crore, as per SEBI regulations concerning defaults on loans from banks/financial institutions. For the quarter ended September 30, 2024, the company reported a total outstanding loan amount of Rs 71.49 crore, with a defaulted amount of Rs 43.89 crore. Moving to the quarter ended December 31, 2024, the total outstanding loans stood at Rs 61.02 crore, with a default of Rs 41.52 crore. These disclosures highlight a persistent challenge for Dharan Infra-EPC Ltd in meeting its financial obligations to lenders.

The trend of defaults continued into the quarter ended March 31, 2025, where the company reported a total outstanding loan amount of Rs 59.55 crore, with a defaulted amount of Rs 40.48 crore. Across all three periods, the defaults are specifically related to loans and revolving facilities from banks and financial institutions; there are no reported defaults on unlisted debt securities like NCDs and NCRPS. The consistent nature of these defaults across successive quarters indicates ongoing financial strain for Dharan Infra-EPC Ltd, impacting its overall financial indebtedness.

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Dharan Infra-EPC Ltd (formerly known as KBC Global Ltd), established in 2007, focuses on real estate construction, development, and civil contracts (EPC). The company primarily builds residential and commercial projects but has recently expanded into large-scale infrastructure like railways, roads, bridges, and ports, and even renewable energy through Dharan Infra Solar Pvt Ltd.

The company has a market cap of over Rs 200 crore. One must beware of this penny stock trading under Re 1, as it is inherently highly volatile and speculative, posing a significant risk of capital loss. The stock often suffers from low liquidity, a lack of transparent financial information and susceptibility to pump-and-dump schemes.

Disclaimer: The article is for informational purposes only and not investment advice.