The shares of this microcap company locked a 2 percent upper circuit after receiving LoA worth Rs. 23.46 crores from the Government of Maharashtra. On a YTD basis, the stock has delivered more than a 100 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 197 crores, the shares of Dhruv Consultancy Services Ltd started Friday’s trading session on a higher note at Rs. 127.61, clocking a 2 percent upper circuit compared to its previous close of Rs. 125.11 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that in collaboration with Maps Global Civiltech Private Limited, had been awarded a Letter of Acceptance (LoA) for providing consultancy services as the Authority Engineer for the supervision of the Hybrid Annuity Scheme – II in Maharashtra.
This project operates under an Engineering, Procurement, and Construction model and is part of a broader initiative by the Maharashtra State Infrastructure Development Corporation Ltd. (MSIDC), which is a government undertaking.
The contract/bid price for this project, designated as H1, is Rs. 23.46 crores, with a contract duration of 90 months.
Financials:
Looking at the company’s financial performance, the revenue decreased by 20 percent from Rs. 24.69 crores during the March quarter to Rs. 19.70 crores in the June quarter. On the other hand, the net profits magnified by 105 percent from Rs. 43 lakhs to Rs. 88 lakhs during the same period.
Order Book:
As of 30th June 2024, the company’s total order book stands at Rs. 646.35 crore with Rs. 302.62 crore of unexecuted orders. The current total order book represents an upward growth of 21 percent on a YoY basis, as of date.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.89 percent and a return on capital employed (RoCE) of 13.41 percent for the period spanning FY23-24. Further, the net profit margin stood at 7.23 percent during the same timeframe.
Company Profile:
Dhruv Consultancy Services is specialized in infrastructure design and project management, particularly for public sector projects. Their core services include highway design, project management, bridge and tunnel engineering, and quality control.
Written By Vaibhav Patil
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