This Microcap stock which is engaged in the business of Infrastructure Development and Solar Power generation hit a 2 percent upper circuit after the company received an order from Western Railway worth Rs. 264.39 crore.
Price Action
With a market capitalization of Rs. 397.63 Crores, the shares of Madhav Infra Projects Limited were up by 1.94 percent in the day’s trade touching a day’s high of Rs. 14.75 per share. The stock stayed in the upper circuit limit and was 2 percent higher from the previous closing price of Rs. 14.47 apiece. The stock has delivered a 57 percent return in the past year and outperformed the Nifty Index.
What Happened
The stocks of Madhav Infra Projects rose after the company received an order from the Deputy Chief Engineer, Construction, Western Railway worth Rs. 264.39 crore. The order involves Earthwork and Blanketing in the embankment, Construction of bridge work as per the Railway’s approved Design and Drawing, Construction of Boundary or Toe wall and Supply and spreading of machine crushed stone ballast, and Laying and linking of BG track for the Mainline, loop lines and Points and Crossing in the section between Amjhera – Sardarpur in connection with new BG line project between Dahod – Indore of Ratlam Division which is under the Western Railway division. The time duration for this project to be executed is 18 months.
About the Company
Madhav Infra Projects is an infrastructure development company specializing in construction and project management across various sectors which includes roads, bridges, and urban infrastructure. Their business model focuses on executing large-scale projects through public-private partnerships and government contracts.
The company focuses on quality, timely delivery, and sustainability in its operations. By leveraging advanced technologies and a skilled workforce, Madhav Infra aims to improve infrastructure capabilities while contributing to regional development. Additionally, it seeks to diversify its portfolio by exploring opportunities in renewable energy and smart city projects, aligning with national growth initiatives and infrastructure demands.
Financials & Ratios
Its Revenue from operations declined by 11 percent year on year from Rs. 97.57 Crores in Q2FY24 to Rs. 86.77 Crores in Q2FY25, accompanied by profits of Rs. 7.96 Crores to Rs. 4.18 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 12.50 percent and a return on capital employed (ROCE) of 13.03 percent. It has reported a debt-to-equity ratio of 0.93.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 68.81 percent in Madhav Infra Projects, and public holdings standing at 31.19 percent.
Written by Santhosh S
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