Shares of Dharan Infra-EPC, a small-cap infrastructure penny stock, were locked in the 5 percent upper circuit at ₹0.46 apiece on the BSE on Monday, August 4. This marked the third consecutive trading session in which the stock hit the upper circuit, attracting attention from retail investors amid a broader recovery in the equity market.
The rally in Dharan Infra-EPC’s stock price came in the wake of a relief-driven rebound on Dalal Street. Indian benchmark indices registered a strong recovery after two days of losses, buoyed by positive global cues and a weakening US dollar. On the day, the BSE Sensex surged 419 points, or 0.52 percent, to close at 81,018.72, while the NSE Nifty 50 rose by 157 points, or 0.64 percent, to end at 24,722.75.
Adding to investor optimism, Dharan Infra-EPC recently announced the successful execution of a One-Time Settlement (OTS) agreement with the Central Bank of India. The agreement pertains to the structured resolution of the company’s outstanding financial obligations, amounting to a total settlement value of ₹4.30 crore.
As part of the settlement, Dharan Infra-EPC made an upfront payment of ₹43 lakh—equivalent to 10 percent of the total dues—on July 28, 2025. The remaining amount is scheduled to be cleared in three structured installments, with the final payment due by January 31, 2026.
The company also stated that it is engaged in active discussions with its lenders to formulate similar structured settlements for any remaining dues. Significantly, it clarified that although certain loans are still classified as defaults, they are fully secured with collateral valued at nearly twice the principal outstanding. This, according to the company, ensures sufficient protection for lenders and minimizes risks to the company’s financial health and operations.
Dharan Infra-EPC Share Price Performance
Despite the recent surge, Dharan Infra-EPC’s long-term performance remains under pressure. On a year-to-date basis, the stock has declined over 46 percent, and in the past one year, it has lost more than 53 percent of its value. However, signs of a potential turnaround have emerged. In August alone, the stock has gained 9.5 percent after falling 10.6 percent in July. Notably, it had rallied 27 percent in June. Before that, the stock had remained in the red for seven consecutive months between November 2024 and May 2025.
Investors should remain cautious and consult with certified professionals before considering positions in such volatile and low-priced stocks.
Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms and do not represent the opinion of Mint. Investors are advised to consult certified financial advisors before making any investment decisions.
