The shares of this smallcap company jumped around 5 percent in Wednesday’s trading session after receiving orders worth more than 400 crores from North Western Railway. In one year, the shares have delivered more than 50 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 2,776 crores, the shares of Vishnu Prakash R Punglia Ltd started Wednesday’s trading session on a flatter note at Rs. 213.40 compared to its previous close of Rs. 212.39. During the trading session, the shares hit a high of Rs. 227.70, gaining around 5 percent and are currently trading at Rs. 223 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received a Letter of Acceptance from the Office of DYCE-C-AIIENGINEERING, North Western Railway Ajmer. The tender, evaluated and accepted by the competent authority, has a total value of Rs. 886.16 million (Rs. 88.61 crores)
The Letter of Acceptance concerns the construction project titled “Pushkar-Merta New BG Line” in the Ajmer division of North Western Railway. It includes building major/minor bridges, road under bridges (RUBs), earthwork, platforms, platform shelters, circulating areas, staff quarters, offices, and related works along the Pushkar – Katyasani section.
Additionally, VPRPL-KSIPL BKN JV, a Joint venture, in which Vishnu Prakash R Punglia Limited is a partner received another Letter of Acceptance from the Office of DYCE-C-BKN-ENGINEERING, North Western Railway Bikaner.
The Letter of Acceptance pertains to the project titled ” Major upgradation of Bikaner Railway Station of Bikaner Division of North Western Railway (On EPC)” Following the submission of the tender VPRPL-KSIPL BKN JV was been selected as the chosen contractor for this significant endeavour.
The tender was evaluated and accepted by the competent authority, having a total value of Rs. 3,824.25 million (Rs. 382.42 crores).
Financials:
Looking at the company’s financial statements, the revenue zoomed by 171 percent from Rs. 242 crores during the December quarter to Rs. 657 crores in the March quarter. In addition, the net profits magnified by 294 percent from Rs. 17 crores to Rs. 67 crores during the same timeframe.
Order Book:
As of March 2024, the company had an order book of Rs. 4,717 crores, and further, plans to focus on scaling up its operations and enhancing its project portfolio.
The company received 76 percent of its orders from the Water Supply Projects segment, 16 percent from the Railway segment and the remaining 6 percent of orders were received from Road & Civil segment.
Important Financial Ratios:
In terms of key financial metrics, the company reported a return on equity of 16.94 percent and a return on capital employed of 27.62 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 8.29 percent during the same timeframe.
Company profile:
Headquartered in Jodhpur, Vishnu Prakash R Punglia was incorporated in 2013. The company is engaged in the business of designing and constructing infrastructure projects for the Central and State Governments, autonomous bodies, and private bodies.
Written By Vaibhav Patil
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