Infra stock primarily engaged in the construction of roads, bridges, tunnel works, and many more jumped 8 percent in the day’s trade upon receiving a new work order worth Rs. 278 Crores from the National Highway Authority of India (NHAI).
Price Action
With a market capitalization of Rs. 500 Crores, the shares of SRM Contractors Limited were trading at Rs. 218.30 per equity share, up 4.60 percent from its previous day’s close price of Rs. 208.70.
What Happened
SRM Contractors Limited has been allotted a new project and has signed an EPC Agreement with the National Highway Authority of India (NHAI) for a consideration of Rs. 278.48 Crores.
Also read
The said work order is for the Upgradation and strengthening of the Nashri – Chenani section from Km. 0.00 to Km. 39.100 of NH-244 via Patnitop in the UT of Jammu and Kashmir on an EPC basis.
About the Company
SRM Contractors Limited is an engineering construction and development company primarily engaged in the construction of roads including bridges, tunnel works, slope stabilization works, and other miscellaneous civil construction activities.
Financials and Ratios
Its Revenue from operations grew by 14 percent from Rs. 300 Crores in FY23 to Rs. 342 Crores in FY24, accompanied by profits of Rs.19 Crores to Rs. 27 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 28 percent, and a return on capital employed (ROCE) of 28 percent. It has reported a debt-to-equity ratio of 0.37.
Written by: Bharath K.S
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