The shares of this microcap company jumped around 2 percent on Thursday’s trading session after receiving two sub-contracts from CDR & Co Constructions, who were the principal contractors awarded contracts from the State Highways Department, Tamil Nadu.
Price Movement:
With a market capitalization of Rs. 423 crores, the shares of AVP Infracon Ltd started Thursday’s trading session on a higher note at Rs. 178 compared to its previous close of Rs. 168.35. During the trading session, the shares hit a high of Rs. 181.70, gaining around 2 percent and are currently trading at Rs. 170 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had bagged two sub-contracts from CDR & Co Constructions, who were the principal contractors awarded contracts from the State Highways Department, Tamil Nadu.
The company received the order worth Rs. 23.6 crores for the construction of a bypass to Bagalur town, branching from km 3/0 (Kothapalli) and joining at km 9/350 (Jee Mangalam), including the shifting of utilities of NH 207 (New NH 648) on an EPC basis in the state of Tamil Nadu.
This project is part of the State Highways Department’s initiative to improve connectivity and ease traffic congestion in the region.
Additionally, the company also received another contract worth Rs. 47.20 crores for widening and strengthening the Kallakurichi-Tiruvannamalai Road (SH-6) from km 0/0 to 6/6 and 8/2 to 5/8, transforming it from a two-lane to a four-lane road.
The project also includes the construction of a centre median, minor bridges, and CD works in the state of Tamil Nadu.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 40 percent from Rs. 115 crores during FY22-23 to Rs. 161 crores in FY23-24. In addition, the net profits surged by 58 percent from Rs. 12 crores to Rs. 19 crores during the same period.
Order Book:
With a robust portfolio, the company has completed numerous projects and is currently overseeing 13 active projects. Additionally, the company holds a significant order book valued at Rs. 300 crores.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 19.86 percent and a return on capital employed (RoCE) of 24.01 percent for the period spanning FY23-24. Further, the net profit margin stood at 11.70 percent during the same timeframe.
Company Profile:
Established in 2009, AVP Infracon is engaged in the construction of road projects based on the Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC).
Written By Vaibhav Patil
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