Shares of this microcap company jumped around 5 percent in Wednesday’s trading session after receiving an order National Highway Authority of India worth Rs. 5 crores. The shares have delivered around 35 percent returns to its shareholders in one year.
With a market capitalization of Rs. 56.4 crores, the shares of Artefact Projects Ltd started Wednesday’s trading session on a higher note at Rs. 77.44 compared to its previous close of Rs. 74.28. During the trading session, the shares hit a high of Rs. 78.99, gaining around 5 percent and are currently trading at Rs. 77.15 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had awarded a project from the National Highway Authority of India for consultancy services worth Rs. 5 crores.
The company secured the project for an independent Engineer to supervision the construction of the 6-lane Greenfield Varanasi-Ranchi Kolkata Highway from the junction with Bhabhua Adhaura road in Bhairopur village to Konki village under Bharatmala Partyojana in the state of Bihar on Hybrid Annuity Mode.
Looking at the company’s financial statements, the revenue increased by 12 percent from Rs. 6.38 crores during the December quarter to Rs. 7.12 crores in the March quarter. Due to an increase in expenditure, the net profits decreased by 88 percent from Rs. 1.82 crores to Rs. 22 lakhs during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.82 percent and a return on capital employed (RoCE) of 11.05 percent for the period spanning FY23-24. Further, the net profit margin stood at 21.65 percent during the same period.
Artefact Projects Ltd has completed several projects including detailed design and DPR for over 681.50 kilometres of highways and other roads, project management services for highway projects such as the Chhattisgarh Rural Roads Development project funded by ADB and consultancy assignments for urban transport infrastructure projects in Mumbai and Agra.
According to the latest shareholding pattern, the Promoters maintain ownership of 39.09 percent, while Foreign Institutional Investors possess 0.69 percent of the stake. The remaining 60.22 percent of shares are held by Retail Investors.
Headquartered in Nagpur, Artefact Projects was incorporated in 1987. The company is a leading infrastructure services consultancy organization that provides project management services for highways, urban infrastructure, and airports.
Written By Vaibhav Patil
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