This Midcap Consultancy stock that is into project management consultancy in the sector of infrastructure hit a 5 percent upper circuit in the day’s trade after receiving contracts from NHAI for additional works in Maharashtra.
Price Action
With a market capitalization of Rs. 188 Crores, the shares of Dhruv Consultancy Services Limited hit 5 percent in the day’s trade touching a day’s high of Rs. 125 per share. The stock reiterated from the day’s high and was at upper circuit at Rs. 125 per share which is 5 percent higher than the previous closing price of Rs. 119.05 apiece.
What Happened
Dhruv Consultancy Services Limited has been awarded a contract from the National Highway Authority of India. The Maharashtra government is undertaking several significant infrastructure projects under the Engineering, Procurement, and Construction mode to improve road safety and connectivity.
Key initiatives include the construction of a Railway Overbridge at Bhaiya Chowk Junction on the Sangli-Solapur section of NH-166, which will also improve service roads.
Additionally, a Vehicular Underpass (VUP) at Yawali on NH-65, along with a Sub-Vehicular Underpass (SVUP), which aimed to facilitate smoother traffic flow.
Multiple service roads are planned along NH-150(E) and NH-52 to improve local access. A new Market Yard Flyover on NH-65 at Ch. 251+800 is set to de-congest in the area. Furthermore, ongoing and upcoming blackspot works on NH-65, NH-52, and NH-150 will be addressed for critical safety concerns.
The total contract price for these projects is approximately Rs. 2.19 crores, with a contract period of 18 months for completion. These developments are expected to improve transportation infrastructure in the state of Maharashtra.
About the Company
Dhruv Consultancy Services Limited was founded in 2003 and headquartered in Navi Mumbai. It is a rapidly growing consultancy firm specializing in infrastructure development. The company offers a wide range of professional services, including feasibility studies, detailed project reports, construction supervision, and technical audits.
Their business model focuses on delivering high-quality, timely, and cost-effective solutions to both public and private sector clients. By leveraging advanced technologies and improving client satisfaction, Dhruv aims to optimize infrastructure projects across India, contributing to national development and improving connectivity.
Financials & Ratios
Its Revenue from operations grew by 42.72 percent year on year from Rs. 22.89 Crores in Q2FY24 to Rs. 32.67 Crores in Q2FY25, accompanied by profits of Rs. 1.88 Crores to Rs. 1.89 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 9.57 percent and a return on capital employed (ROCE) of 11.85 percent. It has reported a debt-to-equity ratio of 0.32.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 59 percent in Dhruv Consultancy Services, Foreign Institutional Investors (FII) holdings stood at 2.73 percent, and public holdings standing at 38.27 percent.
Written by Santhosh S
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