The shares of this microcap company surged around 10 percent in Thursday’s trading session after receiving an order worth Rs. 123 crores under Palamu Pipeline Irrigation Scheme.
Price Movement:
With a market capitalization of Rs. 985 crores, the shares of Vishnusurya Projects and Infra Ltd started Thursday’s trading session on a higher note at Rs. 385 compared to its previous close of Rs. 374. During the trading session, the shares hit a high of Rs. 414, gaining around 10 percent and are currently trading at Rs. 396 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had been awarded an Engineering, Procurement, and Construction (EPC) contract by JWIL-VKMCPL (JV) under the Palamu Pipeline Irrigation Scheme worth over Rs. 123 crores.
The scope of work involves the design and construction of the Palamu Project on a turnkey basis, excluding operations and maintenance.
This includes sourcing 4.498 million cubic meters (MCM) of water from the North Koel River and 19.429 MCM of water from the Auranga River, as well as filling the reservoir using water from the Malay Dam and the Kachharwarter Dam.
Financials:
Looking at the company’s financial statements, the revenue increased by around 29 percent from Rs. 101 crores during H1FY24 to Rs. 130 crores in H2FY24. Contrastingly, the net profits declined by 78 percent from Rs. 23 crores to Rs. 5 crores during the same timeframe.
Recent Development:
Earlier, the company received a work order from Tambaram City Municipal Corporation for the Removal of Legacy waste dumped at the Kolathur (Appur) dumping yard through the Bio Mining Process worth over Rs. 35 crores.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 20.99 percent and a return on capital employed (RoCE) of 29.19 percent for the period spanning FY23-24. Further, during the same period, the net profit margin stood at 11.96 percent.
Expansion Plan:
The company is planning to expand its mining operations in Hosur, targeting the Bangalore market in FY 2024-25, with an annual production capacity of 9,80,000 MT for the crusher plant and 8,00,000 MT for manufactured sand.
Company Profile:
Headquartered in Tamil Nadu, Vishnusurya Projects and Infra is an Indian construction and infrastructure company specializing in EPC Projects delivered across all key sectors such as transportation, rail, resource, and institutional development.
The company also has a strong presence in mining and the implementation of transformational civil and commercial turnkey projects.
Written By Vaibhav Patil
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