A leading Indian conglomerate, renowned for its diverse portfolio in engineering and real estate, is making waves in the infrastructure sector. The company has secured a significant contract as the highest bidder for developing and managing wayside amenities along the Raipur-Visakhapatnam Motorway, marking a strategic expansion into highway infrastructure development.
Share Price Movement
The share price of NESCO Limited hit an intraday high of 3.75 percent to Rs. 1,007 per share on Wednesday, an increase from its previous close of Rs. 970.65 per share. The market capitalisation now stands at approximately Rs. 6,970 crore as of January 15, 2025.
What driving price?
The company announced that it has been declared the highest bidder by National Highways Logistics Management Limited, a subsidiary of NHAI for developing, operating, and maintaining wayside amenities on the Raipur-Visakhapatnam Motorway on a 30-year lease basis.
This contract is valued at an estimated cost of Rs. 50 crores for each of the 4 sites, with an expected annual revenue of Rs. 300 crores from the fourth year of operations. The official tender allotment was received on January 14, 2025.
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Financial Highlights
In FY2024, revenue reached Rs. 678 crore, up from Rs. 546 crore in FY2023, marking a growth rate of 24%. Profits also saw significant growth, rising to Rs. 363 crore from Rs. 291 crore in FY2023, reflecting a growth rate of around 25%.
Competitors
Major competitors of Nesco Ltd. include DLF, Godrej Properties, Macrotech Developers, Oberoi Realty, 3P Land Holdings, AGI Infra, Signature Global, and Brigade Enterprises.
Market Outlook
India’s infrastructure sector is on track for strong growth, with investments set to reach US $1.4 trillion by 2025. The government’s focus on key projects, such as roads, railways, and airports, supported by initiatives like the National Infrastructure Pipeline and PM Gati Shakti, is expected to drive economic development.
Increased capital investment and rising FDI in construction will boost demand, efficiency, and commercial opportunities. With a budget outlay of US$ 133.86 billion for 2024–25, India’s infrastructure investments are expected to steadily rise, benefiting various sectors.
Written By Fazal Ul Vahab C H
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