A micro-cap infrastructure stock is drawing attention after securing a Rs.11 crore order from Powerica Limited for the supply and installation of diesel generator sets. This deal is expected to enhance the company’s growth prospects, contributing to positive market sentiment.
Price Movement
During Friday’s trading session, Lakshya Powertech Ltd reached an intra-day high of Rs.194.00 per share, falling slightly from its previous close of Rs.195.20 each. The shares have retreated even further and are currently at Rs.190.90 apiece.
Order Specifications
Lakshya Powertech Ltd has successfully secured a significant domestic contract from Powerica Limited, which involves the supply and installation of materials for 8 diesel generator (DG) sets, each with a capacity of 2250 KVA.
The total value of the contract is Rs.11,16,92,042 (excluding taxes), and it is expected to be completed within a period of 6 to 8 months. This contract marks a key milestone for Lakshya Powertech, showcasing its capability to deliver large-scale infrastructure projects and further solidifying its position in the power generation sector.
Business Segments
Lakshya Powertech offers a wide range of services across various sectors, including Oil and Gas, Power, Renewable Energy, and Industrial. Their service offerings encompass Engineering, Procurement, Construction, and Commissioning (EPCC), as well as Integrated Operation and Maintenance Services. Additionally, they provide Special Services, Testing and Commissioning, Overhauls and Refurbishing, and Trading of Spare Parts, catering to diverse industry needs with a focus on quality and efficiency.
Data Center Expansion
Lakshya Powertech currently operates its Data Center services in Mumbai and Pune. The company specializes in designing and implementing Tier-III and IV Data Centers, focusing on both Electrical and Mechanical Systems. It has successfully installed and commissioned 102MW of backup power and a 2250KL fuel handling system for four of India’s renowned data centers.
Lakshya Powertech plans to address the growing and complex demands of the evolving digital landscape. The company aims to leverage its expertise in emergency power generation and fuel handling systems to expand its offerings.
Earnings Report
In its latest financial update, Lakshya Powertech Ltd reported consolidated revenue of Rs.67 crores for Q3 FY25, marking a 5 percent increase from Rs.64 crores in Q3 FY24. The company also saw a significant 75 percent rise in net profit, reaching Rs.7 crores, up from Rs.4 crores in the same quarter last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 38.67 percent and a Return on Equity (ROE) of 44.72 percent. Its Price-to-Earnings (P/E) ratio stands at 13.16, lower than the industry average of 34.53. Furthermore, the company maintains a current ratio of 2.93, a debt-to-equity ratio of 0.72, and an Earnings Per Share (EPS) of Rs.14.83.
Written by – Siddesh S Raskar
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