A Barclays-backed micro-cap stock surged 10 percent after announcing that it has secured a significant construction order worth Rs.225.46 crores from Royal Rides Pvt. Ltd. The order, for the construction of two terminal buildings and ropeway tower works in Goa, marks a major milestone for the company, further strengthening its presence in large-scale infrastructure projects.
Price Movement
During Thursday’s trading session, Vascon Engineers Ltd reached an intra-day high of Rs.45.38 per share, rising 9.6 percent from its previous close of Rs.41.41 each. However, the stock has retreated since then and currently trading at Rs.44.20 apiece. Over the past five years, the stock delivered over 450 percent returns.
Construction Order
Vascon Engineers Limited has received a Letter of Intent from Royal Rides Pvt. Ltd., Goa, for a significant construction project worth Rs. 225.46 crores (excluding GST and Labour Cess). The contract involves the construction of two terminal buildings, along with the foundation for a ropeway tower and other site development work at Panaji and Reis Magos, Goa.
The order has been awarded on a ‘Design and Build’ basis, which means the company will be responsible for both the design and construction phases of the project. The contract is a domestic one, and the work is required to be completed within 36 months from the issuance of the Letter of Intent.
Order Book and EPC Segment
Vascon Engineers Limited has a strong order backlog of Rs.3,179 Crores, nearly four times its FY2024 EPC revenue. Around 78 percent of the orders are from government projects, ensuring steady cash flows. EPC revenue grew by 48 percent year-on-year to Rs.274 Crores in Q3 FY25, and by 37 percent to Rs.664 Crores in the first nine months of FY25. The management is optimistic about reaching an order booking target of Rs.1,500 Crores for FY25, with Rs.500 Crores already secured.
Marquee Clients
Vascon Engineers has established a strong portfolio of marquee clients, including Cipla, IBM, Vascon, Global Hospitals, Symbiosis International, Dr. Reddy’s, NBCC, Gar, Sanofi, DLFA, Zensar, Tata Housing, Airports Authority of India (AAI), Novotel Hotels, Bangalore Metro Rail Corporation Limited (BMRCL), Sahyadri Hospitals, Hyatt, GIM, and Vedanta. By consistently maintaining high-quality standards across its projects, the company ensures repeat orders and strengthens its reputation in the industry.
Earnings Report
According to its latest financial update, Vascon Engineers Ltd reported consolidated revenue of Rs.295 crores in Q3 FY25, reflecting a 42.51 percent rise from Rs.207 crores in Q3 FY24. Additionally, the company’s net profit surged by 300 percent to Rs.76 crores, compared to Rs.19 crores during the same quarter of the previous year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 6.75 percent and a Return on Equity (ROE) of 5.51 percent. Its Price-to-Earnings (P/E) ratio stands at 19.54, lower than the industry average of 23.25. Furthermore, the company maintains a current ratio of 1.94, a debt-to-equity ratio of 0.23, and an Earnings Per Share (EPS) of Rs.2.12.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a
