This Smallcap stock which is engaged in the business of end-to-end civil construction for commercial and residential was up by 11 percent intraday trade after receiving an order worth Rs. 1,087.34 crore from Gorakhpur Development Authority.
Price Action
With a market capitalization of Rs. 1,246.85 Crores, the shares of Garuda Construction and Engineering Limited touched a day’s high of Rs. 136.07 per equity share, up 10.75 percent. The stock has touched a day’s high of Rs. 136.07 and was trading higher by around 8.09 percent up from its previous day’s close price of Rs. 122.86. The stock delivered a return of 23.28 percent and outperformed the Nifty Index from the listing date.
What Happened
The company’s stock surged in trade after receiving an order worth Rs. 1,087.34 crore from the Gorakhpur Development Authority on Engineering, Procurement & Construction (EPC) mode for the International Convention Centre which is spread across 24 lakh square feet, with a seating capacity of 5,000. The location is near Ramgadh Jheel Champadevi Park and the project is to offer the development of adjacent land parcels for residential and commercial use. The expected time for completion of the project is in the next 30 months.
Management Commentary
Commenting on the Order, Pravin Kumar Agarwal, the Managing Director and Chairman said “We are proud to deliver high-quality infrastructure solutions that contribute to the nation’s growth. Our diverse project portfolio highlights our strength in adapting to the market’s changing needs while ensuring that we remain focused on innovation, sustainability, and operational efficiency. With our current order book and expertise in delivering turnkey solutions, we can contribute significantly to India’s infrastructure development.”
About the Company
Garuda Construction and Engineering specializes in providing comprehensive construction and engineering services while focusing on infrastructure projects, residential developments, and commercial buildings. Their business model focuses on quality workmanship, innovative solutions, and sustainable practices. By leveraging advanced technology and skilled labor, Garuda aims to deliver projects on time and within budget while ensuring client satisfaction.
Order Book
This company has an order book of Rs 2,830 crore, up from Rs. 1,408.27 crore at the IPO time in October 2024. The public sector orders account for two-thirds of the order book and the remaining third from the private sector.
Financials & Ratios
Its Revenue from operations increased by 33.09 percent quarter on quarter, from Rs. 35.12 Crores in Q1FY25 to Rs. 46.75 Crores in Q2FY25, accompanied by a profit of Rs. 8.64 Crores to Rs. 10.24 Crores.
In terms of Return ratios, the return on equity (RoE) stood at 36.15 percent and a return on capital employed (RoCE) of 46.96 percent in FY24. They had little to no debt-to-equity ratio in FY24 and declined from 0.1 in FY23.
Shareholding Pattern
As of October 2024, the promoters of Garuda Construction and Engineering held a share of 67.56 percent, foreign institutional investors (FII) held around 13.10 percent, Domestic Institutional Investors (DII) held around 1.79 percent, and public investors held the remaining 17.56 percent.
Written by Santhosh S
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