Infra stock primarily engaged in the construction of roads, bridges, tunnel works, and many more jumped upto 5 percent in the day’s trade upon receiving a new work order worth ~Rs.106 Crores from NHAI.
Price action
With a market capitalization of Rs. 872 Crores, the shares of SRM Contractors Limited were trading at Rs. 592 per equity share, up 2 percent from its previous day’s close price of Rs. 372.55.
What Happened
SRM Contractors Limited an engineering construction and development company engaged in the construction of roads including bridges, tunnel works, and many more has received a new Letter of Acceptance from the National Highway Authority of India (NHAI) for a consideration of Rs. 105.96 Crores.
The work involves Long-term rectification work of blackspots by the construction of VUP at Sornath Junction, Flyover at Keshod Junction, Flyover & LVUP at Gadu Location, Service road at Santipara Patiya on JetpurSomnath section of NH 151 in the State of Gujarat on EPC mode and it is to be completed within 18 months.
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 & Ratios
Its revenue from operations declined by 12 percent from Rs. 108 Crores in Q2FY24 to Rs. 95 Crores in Q2FY25, accompanied by profits of Rs. 13 Crores to Rs. 10 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 11.05 percent and a return on capital employed (ROCE) of 15.04 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.16.
Written by: Bharath K.S
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