The shares of the operation & maintenance service provider gained up to 7 percent after the company bagged the prestigious work order from BrihanMumbai Municipal Corporation worth Rs 50.80 crore.
With a market capitalization of Rs 402.21 crore, the shares of Markolines Pavement Technologies Ltd were trading at Rs 210.50 per share, increasing around 4.52 percent as compared to the previous closing price of Rs 201.40 apiece.
Reason for rise:-
According to the company filing, Markolines Pavement Technologies Ltd bagged the prestigious work order from BrihanMumbai Municipal Corporation for the Improvement of Eastern Express Highway and Western Express Highway in Micro Surfacing as Pilot Projects. The order was valued at Rs 50.80 crore.
Financial performance:-
Analyzing a company’s financial performance, revenue slipped by 18 percent from Rs 160 crore in H1FY24 to Rs 131 crore in H2FY24, during the same time frame, the company’s net profit shrunk significantly by 33 percent from Rs 9 crore to Rs 6 crore.
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Service Offerings:
Markolines offers services in highway maintenance, specialized maintenance, and specialized construction. Major repairs occur every five years, while preventive maintenance extends road life. Specialized maintenance includes Micro Surfacing and Cold in Place Recycling, introduced in India, alongside construction services like soil stabilization and tunneling.
Order Book and Growth Guidance:
The order book recently grew by ₹70 crore and ₹55 crore from various projects. The company expects ₹400-500 crore in orders this year, focusing on specialized construction and maintenance services, with a projected conservative revenue growth rate of 25-30% over the next two years.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 18.34 percent in FY22-23 to 17 percent in FY23-24, while the return on capital employed decreased from 25.37 percent to 25.19 percent. The net profit margin (NPM) for fiscal year 23-24 is 4.98 percent.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 71.32 percent while Retail shareholders own a 26.86 percent stake in the company, and Foreign Institutional Investors own a 1.82 percent stake.
Company profile:-
Markolines Pavement Technologies Limited is an India-based company that is primarily engaged in the business of providing highway operations and maintenance services. The Company provides services for infrastructure operations, including road building and road maintenance.
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Written by:- Abhishek Singh
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