The shares of an Infra company, specializing in structural projects, including elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways, jumped upto 6 percent upon receiving an official notification from the National Highways Authority of India (NHAI) worth Rs. 1,199.3 crores to construct the 35.4 km Northern Ayodhya Bypass.
With a market capitalization of Rs. 4,850.73 crores on Wednesday, the shares of Ceigall India Limited jumped upto 6.2 percent, making a high of Rs. 288.40 compared to its previous close of Rs. 271.45.
Ceigall Northern Ayodhya Bypass Private Limited, a subsidiary of Ceigall India Limited, has received official notification from the National Highways Authority of India (NHAI) declaring July 9, 2025, as the “Appointed Date” for the commencement of the Northern Ayodhya Bypass Project.
This project involves the construction of a 4/6 lane bypass with a total length of 35.40 km, comprising two parts: Part-1 north of NH-27 (from km 0+000 to km 30+400) and Part-2 south of NH-27 (from km 0+000 to km 5+000), under the Hybrid Annuity Model (HAM) as part of NHDP Phase-VII in Uttar Pradesh, with a project cost of Rs. 1,199.30 crore.
The appointed date signifies the official start of the concession period as per the Concession Agreement, and from this date, the concessionaire is responsible for the construction, maintenance, and ensuring the safety and traffic-worthiness of the highway.
Financials & Others
The company’s total revenue rose by 8.73 percent from Rs. 951.75 crore to Rs. 1,034.82 crore in Q4FY24-25. Meanwhile, Net profit declined from Rs. 108.96 crore to Rs. 74.1 crore during the same period.
The company demonstrates strong financial fundamentals with a Price-to-Earnings (P/E) ratio of 16.08, which is attractively lower than the industry average of 19.92, indicating potential undervaluation. It maintains a low debt-to-equity ratio of 0.54, reflecting prudent financial management and low leverage risk.
Over the past three years, the company has consistently delivered impressive performance, with an average Return on Equity (ROE) of 24.59% and Return on Capital Employed (ROCE) of 19.24%, showcasing effective use of shareholder and capital funds. Additionally, it has achieved robust average revenue and net profit growth of 38.76% and 34.22%, respectively, highlighting strong business expansion and profitability.
Ceigall India Limited, founded in 2002 and headquartered in Ludhiana, Punjab, is a leading infrastructure construction company specializing in complex projects such as elevated roads, highways, expressways, bridges, tunnels, and railway overpasses. The company is recognized for its expertise in Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) projects.
It has a list of marquee clients, including prestigious organizations such as the National Highways Authority of India (NHAI), the Ministry of Road Transport and Highways, and the Military Engineer Services. The company also works closely with the Public Works Department in Punjab, IRCON International Limited, the Bihar State Road Development Corporation Limited, and more.
As of March 2025, the company maintains a balanced mix of EPC and HAM projects with a strong focus on roads, highways, and flyovers, which make up 82.9% of its order book. Other segments include railways and metros (13.3%), tunnels (2.5%), and bus terminals (1.3%), while airport runway projects currently have no allocation.
Written by Sridhar J
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