Shares of this engineering stock under the ‘small-cap’ category jumped approximately 6 percent in Wednesday’s trading session after the company received a Letter of Award (LoA) from the Government of Uttarakhand for the development of water supply systems.
With a market capitalization of Rs 2,858.71 crores, the stocks of Vishnu Prakash R Punglia Limited started their trading session on Wednesday at Rs 238.85 and currently trade at Rs 229.35, gaining around 6 percent as compared to the previous closing levels of Rs 216.95 apiece.
Such sharp movements in the stock prices were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has received a Letter of Award (LoA) from the office of the Program Director, Urban Development Department, Government of Uttarakhand.
The order mentioned above is worth Rs 898.7 crores and pertains to the development of Water Supply Systems (WSS) with 18 years of operations and maintenance (O&M) in the cities of Haldwani and Kotdwar.
During the recent financial quarters, the company’s basic indicators of business such as operating revenues and net profits, on a standalone basis, showed positive movements.
The former increased from Rs 278 crores during Q1FY23-24 to Rs 296 crores during Q2FY23-24 and the latter, keeping the timeframe the same, moved up from Rs 16 crores to Rs 21 crores.
The company has been successful in increasing its profitability metrics such as return on equity (RoE) as well as return on capital employed (RoCE). The former rose from 32.94 percent during FY21-22 to 38.31 percent during FY22-23, and, the latter, took a shift from 30.19 percent to 33.93 percent during the same period.
In addition to the above, the debt-to-equity ratio of the company reduced from 1.11 times during FY21-22 to 0.80 times during FY22-23.
Vishnu Prakash R Punglia Limited is a certified EPC company with experience in designing and constructing various infrastructure projects for the Central & State Governments, and other bodies across various states in India. The company’s business segments are divided into four categories, viz, water supply, railway, road, and irrigation network projects.
Written by Amit Madnani
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