This water management stock engaged in the engineering, procurement, and construction of infrastructure projects, including water supply systems, railways, roads, irrigation networks, and smart city developments across India, is in focus after the company order book is higher than its market cap and is currently trading at a discount of 49 percent.
Stock Price Movement:
With a market capitalization of Rs. 2,183.14 crores, the share of Vishnu Prakash R Punglia Limited has reached an intraday high of Rs. 176 per equity share, rising nearly around 12.06 percent from its previous day’s close price of Rs. 157.05.
Since then, the stock has retreated and closed at Rs. 175.15 per equity share. The stock is currently trading at 49.35 percent down from its 52-week high of Rs. 345.85.
Company Overview:
Vishnu Prakash R Punglia Limited (VPRPL) was established in 1986 and is a rapidly growing infrastructure development company based in Jodhpur, India. The company specializes in designing and constructing infrastructure projects for various entities, including Central and State Governments, autonomous bodies, and private organizations across 13 states and one Union Territory.
Order Book:
As of December 31, 2024, the company’s total order book stood at Rs. 5,125 crore. The Water Supply Projects (WSP) segment contributed Rs. 3,436.5 crore (67 percent), the Railway Projects segment added Rs. 1504.4 crore (29 percent), and the Roads and Highway segment accounted for Rs. 184.2 crore (4 percent).
The order book is set to be executed within 24-25 months. During this financial year, the company secured Rs. 1,333 crores in new orders and has a strong bidding pipeline with potential orders worth Rs. 4,500 crores expected soon.
Margin Guidance:
The company’s management expects its profit margins to improve in the coming months as revenue from new projects starts to flow in. The recent drop in EBITDA margin happened due to initial costs for these new projects, but they believe margins will recover as the projects move forward.
Future Outlook:
The management is positive about future revenue growth, depending on the clearance of pending payments from government departments. The extension of the Jal Jeevan Mission timeline to 2028 offers a promising outlook for the company’s water supply projects.
Revenue Breakdown:
The company’s revenue mainly comes from the Drinking Water Supply Scheme, contributing 75 percent of Q3 revenue. Railway projects and Southern area projects each add 8 percent. The remaining percentage involves work on sewage treatment and irrigation projects as part of a diverse portfolio.
Product and Services Offering:
The company’s core business focuses on four key areas. They work on water supply projects building water treatment plants and pipelines. Their railway projects develop important transport infrastructure. In road projects, they construct highways and roads for better connectivity. Lastly, their irrigation network projects improve farming through efficient irrigation systems.
Recent quarter results and ratio:
Vishnu Prakash R Punglia Limited’s revenue has decreased from Rs. 242.05 crore in Q3 FY24 to Rs. 240.93 crore in Q3 FY25, which has dropped by 0.46 percent. The net profit has also decreased by 77.78 percent from Rs. 17.37 crore in Q3 FY24 to Rs. 3.86 crore in Q3 FY25.
Vishnu Prakash R Punglia Limited’s revenue and net profit have grown at a CAGR of 32.06 percent and 59.01 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 24.7 percent and 23.6 percent, respectively. Vishnu Prakash R Punglia Limited has an earnings per share (EPS) of Rs. 8.78, and its debt-to-equity ratio is 0.74x.
Written By – Nikhil Naik
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