This penny stock jumped 10% within the first half hour of markets opening on Monday after it bagged an order from National Highway Authority of India. The stock currently trades at Rs. 53.65 versus 49.24 at previous close. The company has a market cap of Rs. 39 crore and is currently trading 17% away from its 52 week high and 6.5% above its 20 day and 200 day moving averages respectively.
Artefact Projects Ltd (“Artefact projects”) announced in a filing dated 23rd September 2023 that it has been awarded the following Project from National Highway Authority of India. Under the order, the company will provide independent engineer services for operation and maintenance stage of four laning of Kashipur- Sitarganj section NH-74 from km 175.000 to km 252.200 in the State of Uttarakhand and Uttar Pradesh under NHDP Phase -IV on DBFOT (Toll) basis.
The company’s contracted fees for the above project awarded is approx. Rs. 5.07 crores. With the above contracted award, the company’s cumulative gross value of orders in hand for ongoing projects exceeds Rs. 236 crore which the company states will impart a strong revenue visibility for next 3 to 4 years.
The company’s growth has slowed in the previous fiscal year but its profitability in the form of bottom line margins has expanded considerably over the past few years. Artefact Projects’ revenue degrew 23% YoY in FY23 from Rs. 23.6 crore to Rs. 18.2 crore.Net profits during the same period grew 29% YoY from Rs. 4.1 crore to Rs. 5.3 crore, indicating a margin accretion of approx. 1190 bps.
Artefact Projects provides project management services for infra such as highways and airports as well as urban development projects in India and abroad. The company has had stable shareholding over the past few quarters with 39% promoter holding, 60% public holding and rest being held by FIIs.
Written by Sandeep R
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