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. 100.45 Crores from the National Highway Authority of India (NHAI).
Price Action
With a market capitalization of Rs. 534 Crores, the shares of SRM Contractors Limited were trading at Rs. 233 per equity share, up 4 percent from the previous day’s close price of Rs. 223.95.
What Happened
SRM Contractors Limited has been allotted a new project and has signed an Engineering, Procurement, and Construction (EPC) Agreement with the National Highway Authority of India (NHAI) for a consideration of Rs. 100.45 Crores.
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The said work order is for the Construction of Slope Protection Work at various locations on the Hillside between Km 67+000 to Km 106+139 of the Parwanoo-Solan section of NH22(now NH55) on EPC mode in the State of Himachal Pradesh.
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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