Shares of one of the leading players in the electrical contracting and equipment industry hit a 5 percent upper circuit on BSE, to reach a new 52-week high of Rs. 217.65 on Monday, after the company announced completing a project worth ~Rs. 10.2 crore for the Department of Atomic Energy.
With a market capitalisation of Rs. 270.8 crores, the shares of Power and Instrumentation (Gujarat) Limited opened in the green at Rs. 217.65, as against its previous closing price of Rs. 207.3.
What’s the News:
According to the latest regulatory filings with the stock exchanges, Power & Instrumentation (Gujarat) Limited (PIGL) announced the completion of a key project for the Government of India’s Department of Atomic Energy, Nuclear Fuel Complex (NFC) in Kota.
This project, valued at Rs. 10.18 crore and with an actual execution cost of Rs. 10.8 crore, involved the designing, engineering, supplying, installation, testing, and commissioning of high-voltage Diesel Generator (DG) sets, AMF & Synchronizing Panels, as well as Switchboards, and other critical electrical systems.
The Nuclear Fuel Complex commended PIGL for its outstanding performance in key areas, including quality of work, technical expertise, resourcefulness, and financial stability.
NFC also acknowledged PIGL’s ability to meet the technical requirements of this project, ensuring an uninterrupted power supply to the nuclear facility while strictly following safety regulations.
This project was of strategic importance, as the Nuclear Fuel Complex plays a key role in fuelling India’s nuclear reactors. The systems installed by PIGL are critical for maintaining both the safety and smooth operation of the NFC.
PIGL’s high-voltage DG sets and power systems ensure the facility’s continuous operation, even during power outages. Given the project’s complexity and its direct impact on the functioning of a nuclear plant, the work demanded the highest standards of precision and expertise.
PIGL effectively met these demands, demonstrating its capability to successfully deliver large-scale, high-stakes projects for critical government sectors.
Previous News:
On 15th August, PGIL was awarded significant contracts worth Rs. 28.41 crore under the Mukhyamantri Ujjawal Jharkhand Yojana (MUJY) for the electrification of un-electrified and partially electrified habitations and households in Sahibganj District, Jharkhand.
Under Contract Part I, the company was tasked with handling the loading, transportation, installation, and commissioning of the electrification infrastructure, ensuring that rural habitations with fewer than and more than 10 households, as well as urban areas, received reliable electricity. The total contract price for this part was Rs. 22.92 crore.
Under Contract Part II, the company was responsible for conducting a wide range of activities, including site survey, planning, design, engineering, assembly, manufacturing, testing, and the supply of necessary materials. The total contract price for this part was Rs. 5.49 crore.
Financials:
The company reported a significant growth in the revenue from operations, experiencing a year-on-year rise of nearly 17 percent, increasing from Rs. 21.8 crores in Q1 FY24 to Rs. 25.5 crores in Q1 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 1 crore to Rs. 1.87 crore, representing a growth of around 87 percent YoY.
As of Q1 FY25, the company had orders totalling ~Rs. 316 crore. Of this, work valued at around Rs. 88 crore has been completed, with the remaining Rs. 228 crore yet to be executed. These contracts include direct contracts, subcontracts, as well as those secured through joint ventures.
Management Guidance:
The company raised funds of Rs. 71.48 crores by issuing Preferential Equity Shares and Convertible Equity Warrants to both Promoter and Non-Promoter Groups.
These funds will be utilised to finance expansion plans, explore new business opportunities, enhance competitive positioning in the market, and support the acquisition of a controlling stake in Peaton Electrical Company Limited (PECL).
PIGL currently holds a 15.23 percent stake in PECL and plans to increase its shareholding to acquire controlling stakes of up to 60 percent.
The acquisition of Peaton Electrical will expand PIGL’s footprint in the electrical market by adding capabilities in the manufacturing of electrical panels, compact substations, and new products.
This strategic move will further strengthen PIGL’s ability to serve key clients, including Tata Power Limited, the Airports Authority of India (AAI), Bharti Airtel Limited, and the Central Public Works Department, thereby enhancing its market position and broadening its service portfolio.
The company is looking to diversify into the solar EPC market and battery energy storage systems (BESS), aligning with trends in renewable energy and digital energy solutions.
By bidding under the RDSS scheme, PIGL aims to capitalise on government projects that enhance power distribution, expanding its market reach.
By 2025, PIGL aims to qualify for larger orders valued at Rs. 300-350 crore, enhancing its market opportunities and revenue potential.
The company further expects a 50 percent YoY revenue growth, driven by market expansion and improved execution.
Stock Performance
The stock has delivered multibagger returns of nearly 430.4 percent of returns in one year, as well as around 217.2 percent returns in the last six months. So far in 2024, the shares of Power and Instrumentation (Gujarat) Ltd. have given multibagger returns of about 297.5 percent.
In May 2023, the company successfully migrated to the main boards of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
About the Company:
Founded in 1975, Power & Instrumentation (Gujarat) Ltd. (PIGL) is engaged in the business of Electrical Contract Work, specializing in providing comprehensive Engineering, Procurement and Construction (EPC) solutions and dealing in electrical equipment.
The company offers a wide range of services, in the field of electrical engineering ranging in the transmission & distribution sector, along with providing post-installation maintenance services.
PIGL’s expertise spans designing, supplying, installing and maintaining energy-efficient power systems across the industry.
Written by Shivani Singh
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