In Wednesday’s trading session,one of the leading Infrastructure stock, specializing in providing integrated engineering solutions for infrastructure projects, jumped 2.5 percent upon receiving an order worth ~Rs.416.5 from Indore Municipal Corporation for the design, construction, and operation of sewage treatment plants.
Price action
With a market capitalization of Rs. 4,635.16 crores on Wednesday, the shares of EMS Limited were trading at Rs. 839 up by 2.2 percent making a high of Rs. 854.65 per share compared to its previous closing price of Rs. 835.25 per share.
What Happened
EMS Limited, specializing in providing integrated engineering solutions for infrastructure projects, has received a domestic work order from the Indore Municipal Corporation for the design, construction, and operation of sewage treatment plants with capacities of 120, 40, and 35 MLD, along with associated structures and works, under a 15-year O&M (Operations and Maintenance) agreement on a DBOT (Design, Build, Operate, Transfer) basis.
The estimated value of the order is approximately Rs. 416.5 crore, with EMS Limited holding a 26 percent share in the joint venture. The project involves the construction of pumping stations, diversion works, and the O&M of the entire sewage treatment infrastructure in Indore, Madhya Pradesh, as part of the National Mission for Clean Ganga initiative.
About the Company
EMS Limited is a leading player in the Indian infrastructure sector, with a strong focus on providing end-to-end solutions for water and wastewater management. Established with a vision to contribute to the nation’s development, the company specializes in the design, construction, and maintenance of critical infrastructure, such as sewage treatment plants, water treatment facilities, stormwater drains, and other related infrastructure.
EMS Limited is committed to sustainability and innovation, focusing on delivering high-quality solutions that cater to the evolving needs of urban and rural development. Through its strategic partnerships and joint ventures, the company has successfully completed numerous projects across India, contributing to the nation’s infrastructural growth, particularly in the water treatment and sanitation sectors.
Capex FY24
The Capex spends are distributed across multiple parts of the ecosystem, with 36 percent focused on sewerage and water piping, 30 percent on drinking water, 18 percent on industrial wastewater, and 15.50 percent on municipal wastewater.
Shareholding Pattern
The shareholding distribution of EMS Limited is as follows: promoters hold 69.70 percent of the company, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 0.66 percent and 0.40 percent, respectively. The remaining 29.23 percent is held by the public.
Financials
The company’s revenue rose by 7.9 percent from Rs 218.16 crore to Rs 235.5 crore in Q2FY24-25. Meanwhile, Net profit gained from Rs 45.28 crores to Rs 49.65 crore during the same period.
Key Financial ratios
EMS Limited has an impressive Return on Equity (RoE) of 19.38 percent and a Return on Capital Employed (RoCE) of 24.23 percent. Furthermore, the company’s debt-to-equity ratio is 0.09.
Written by Sridhar J
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