IT stock engaged in offering geospatial engineering, mobility, enterprise solutions and many more hit a 5 percent upper circuit in the day’s trade upon receiving new prestigious work order worth ~Rs. 381 Crores.
Price Action
With a market capitalization of Rs. 3,320 Crores, the shares of Ceinsys Tech Limited hit a 5 percent upper circuit in the day’s trade at Rs. 1,903.90 per equity share, from its previous day’s close price of Rs. 1,813.25.
What Happened
Ceinsys Tech Limited engaged in providing Geospatial, Engineering, and other Services has received a Letter of Intent from the Vidarbha Irrigation Development Corporation, Executive Engineer, Irrigation and Hydropower Project Investigation Department, Nagpur.
It involves a detailed survey investigation, hydrology study, design & estimation of the main canal, feeder canal, LIS, pipeline, tunnels, enroute tanks, PDN & other relevant structures, and allied works required for the reparation of a detailed project report for Wainganga Nalganga River link project in districts of Nagpur, Wardha, Yavatmal, Amravati, Akola, Washim and Buldhana.
The work order is received for a consideration of Rs. 381.18 Crores and it is to be executed within 6 months and the estimated capex value of the project by the entity once implemented is Rs. 85,000 Crores.
For the fulfillment of this project, Ceinsys Tech has also partnered with Nippon Koei India Private Limited, the Indian venture of the Japanese Conglomerate whose expertise in some of the deliverables will add value to the overall delivery by CS Tech Al.
This River linking project is the most ambitious project and very valuable for the development of all regions of Maharashtra, Once completed will be a lifeline for several districts of Maharashtra covering the majority of Vidarbha providing consistent irrigation facilities and enhancing the agricultural and daily water needs of the region.
About the Company
Ceinsys Tech Limited is engaged in offering geospatial engineering, mobility, and enterprise solutions. It is also engaged in the sale of software and electricity. Its engineering services and Enterprise solutions encompass various aspects of geospatial intelligence, including Data Creation, Data Analytics, Decision Support Systems (DSS), Enterprise Web Solutions, and Dashboards.
Its products and services include C mapping and analysis, mining applications and heritage mapping, hydraulic modelling, water metering solutions, municipal solutions, consultancy services for the DPR preparations for water supply schemes, roads and highways, and many more.
Financials & Ratios
Its Revenue from operations grew by 57 percent YoY from Rs. 59.19 Crores in Q2FY24 to Rs. 92.93 Crores in Q2FY25, accompanied by profits of Rs. 4.66 Crores to Rs. 11.65 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 12.47 percent and a return on capital employed (ROCE) of 17.67 percent. It has reported a debt-to-equity ratio of 0.05.
Written by: Bharath K.S
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