Shares of this microcap company jumped 3 percent in Thursday’s trading session after receiving an order worth Rs. 72 crores from multiple clients.
With a market capitalization of Rs. 271 crores, the shares of Markolines Pavement Technologies Ltd started Thursday’s trading session on a higher note at Rs. 143 compared to its previous close of Rs. 137.80. During the trading session, the shares hit a high of Rs. 146, gaining around 3 percent and are currently trading at Rs. 142 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had been awarded various work orders/contracts, which amount to Rs.72 Cr. from various clients – existing as well as new, including NHAI, Cube Highways, BNC Palasiddha Infra Private Limited, Rajmata Jijayu Road Nirmiti Private Limited etc.
The nature of work will range from the construction of a new tunnel, improvement and strengthening of existing lanes, PQR Repairs, Micro-surfacing, maintenance of roads etc. Whereas the work period for these orders ranges from May 2024 to November 2025.
Looking at the company’s financial statements, the revenue zoomed by 65 percent from Rs. 131 crores in H1FY24 to Rs. 216 crores during H2FY24. In addition, the net profits surged by 83 percent from Rs. 6 crores to Rs. 11 crores during the same timeframe.
As of March 2024, Markoline’s order book is more than Rs.287 crores and another worth Rs. 500 crores of orders is in Pipeline at various stages of Finalization.
According to the company’s filing, it holds a dominant position in the market, boasting a market share of approximately 30 to 35 percent. It stands out as the sole provider in India offering a comprehensive range of services solely dedicated to Highway O&M.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17 percent and a return on capital employed (RoCE) of 17.06 percent for the period spanning FY23-24.
According to the latest shareholding pattern, Promoters maintain a stake of 71.32 percent, while DIIs possess 1.82 percent of shares, leaving the remaining 26.86 percent in the hands of Retail Investors.
Headquartered in Maharashtra, Markolines Pavement Technologies is in the business of providing highway operations and maintenance services.
Written By Vaibhav Patil
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