Likhitha Infrastructure Limited has received an order worth Rs.129.63 Crores from GAIL (India) Limited, for the Laying of the Cross-Country Pipeline along with associated facilities. The project is said to be completed within the next 14 months.
Likhitha Infrastructure is engaged in the business of Pipeline Laying providing comprehensive erection, testing, and commissioning of Oil & Gas Pipelines, City Gas Distribution Projects, and Operation and Maintenance (O & M) Services.
On the news, the shares of the company were trading marginally higher in green at Rs 222.45 levels. In the last 30 days, the stock has shed approximately 8 percent. However, in the last six months, it has scaled up by 58 percent.
Likhitha Infrastructure is the first execution company from India to execute the first ever Trans-National Hydrocarbon (Multi-product) Pipeline Project between India and Nepal. Some of their clientele include Bharat Petroleum Corporation Limited, Indraprastha Gas Limited, and Indian Oil Corporation Limited.
The board of the company is yet to announce its Q3 results. In Q2FY23, the company reported a total revenue of Rs 82.96 Crore, an increase of 6 percent Year on Year from Rs 78.09 Crore. Their net profit was flat at Rs 14.6 Crore in the quarter under review compared to Rs 14.32 Crore in Q2FY22.
The small-cap stock forms part of the ace investor Ashish Kacholia’s portfolio. In the December quarter, he bought 7,94,000 shares or a 2 percent stake in the company with a holding value of Rs 17.5 Crore.
The company has a market capitalization of Rs 876 Crore and a dividend yield of 0.56%. In addition to this, the stock remains undervalued in the market as its TTM PE is 16.5 whereas the industry average PE is 32.07.
Written by Anoushka Roy
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