Shares of this microcap company surged 15 percent in Thursday’s trading session after bagging Rs. 90.2 crores Award for Rail Over Bridge Construction in Uttar Pradesh.
With a market capitalization of Rs. 217 crores, the shares of K2 Infragen Ltd started Thursday’s trading session on a higher note at Rs. 158 compared to its previous close of Rs. 155.50. During the trading session, the shares hit a high of Rs. 182, gaining around 15 percent and are currently trading at Rs. 178 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had bagged a significant contract valued at Rs. 90.2 crores for the construction of a 4 Lane Rail Over Bridge on the Patna-Mughalsarai Section of Danapur Division in the District of Chandauli in Uttar Pradesh.
The tender was secured by a joint venture between Gangasagar Singh and PRL Infrastructure, with K2 Infragen being entrusted with the complete execution responsibility for the project by the UP-State Bridge Corporation Ltd. The said project is slated for completion within an 18-month timeframe.
This agreement contributes to K2 Infragen’s project portfolio, encompassing endeavours such as the engineering, procurement, and construction of infrastructure such as roads, bridges, railways, water supply systems, and buildings.
It substantially enhances its commendable order backlog to Rs. 443.73 crores. Additionally, the company is presently engaged in erecting a similar two-lane flyover for the Public Works Department of Madhya Pradesh.
Coming onto the company’s financial statements, the revenue magnified by 235 percent from Rs. 20 crores in FY21-22 to Rs. 67 crores during FY22-23. In addition, the net profits showcased a transition from a net loss of Rs. 3 crores to a net profit of Rs. 11 crores during the same timeframe.
The company boasts a robust customer base, including prominent names like L&T, Tata, and HG Infra for which K2 Infragen offers a comprehensive suite of services, encompassing project engineering from design to execution, and power engineering solutions tailored to the evolving power sector.
The company’s share made a stellar debut on NSE SME on 8th April 2024. The share price was listed at Rs. 167, which is 40.34 percent higher than the issue price of Rs. 119.
Founded in 2015, K2 Infragen is involved in various activities related to project engineering, power engineering, and EPC (Engineering, Procurement, and Construction) services in India.
Written By Vaibhav Patil
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