In Friday’s trading session, the shares of one of the leading players in the electrical contracting and equipment industry hit a 2% upper circuit at Rs. 139.85, after securing work orders of Rs. 28.4 crores from Jharkhand Bijli Vitran Nigam Limited under Mukhyamantri Ujjawal Jharkhand Yojana.
With a market capitalisation of Rs. 174 crores, the shares of Power and Instrumentation (Gujarat) Limited opened at Rs. 139.85, as against its previous closing price of Rs. 137.15 on BSE.
What’s the News:
Power & Instrumentation (Gujarat) Limited received significant contracts worth Rs. 28.4 crores from Jharkhand Bijli Vitran Nigam Limited (JBVNL) under the Mukhyamantri Ujjawal Jharkhand Yojana (MUJY) for the electrification of un-electrified and partially electrified habitations and households in Sahibganj District, Jharkhand.
Under Contract Part I, the company will handle the loading, transportation, installation, and commissioning of the electrification infrastructure, ensuring that rural habitations with fewer than and over 10 households, as well as urban areas, receive reliable electricity. The total contract price for this part is Rs. 22.92 crore.
Under Contract Part II, the company will conduct a wide range of activities, including site survey, planning, design, engineering, assembly, manufacturing, testing, and the supply of necessary materials. The total contract price for this part is ~Rs. 5.5 crore.
The projects aim to enhance electrification in both rural and urban areas of Sahibganj District, aligning with the objectives of the MUJY to improve living standards through better infrastructure.
The aforementioned Letter of Awards (LOA) are issued to Power & Instrumentation (Gujarat) Limited in a joint venture with Maa Infratech Private Limited, with an execution period of 18 months from the date of issue of notification of LOA.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of nearly 16 percent from Rs. 22 crores in Q1 FY23-24 to Rs. 25.5 crores in Q1 FY24-25.
Similarly, its net profit decreased during the same period from Rs. 1 crore to Rs. 1.87 crore, indicating a growth of 87 percent YoY.
Stock performance:
The stock has delivered multibagger returns of nearly 273.5 percent in one year as well as around 104.6 percent returns in the last six months. So far in 2024, the shares of Power & Instrumentation (Gujarat) Ltd. have given about 155.5 percent of multibagger returns.
About the company:
Founded in 1975, Power & Instrumentation (Gujarat) Limited specialises in Electrical, Procurement, and Construction (EPC) solutions and is engaged in the business of electrical contract work and dealing in electrical equipment.
Written by Shivani Singh
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