The shares of the civil construction company hit 5 percent upper circuit of Rs 62.41 apiece after the company entered into a joint venture for 3 national highways projects worth Rs 1,057.3 crore.
With a market capitalization of Rs 345.48 crore, the shares of Udayshivakumar Infra Ltd were trading at Rs 62.41 per share, increasing around 5 percent as compared to the previous closing price of Rs 59.44 apiece.
Reason for Rise:-
The shares of the company have seen bullish movement after Udayshivakumar Infra Ltd entered into a joint venture with KMC Construction Limited for 3 national highway projects under EPC mode in the state of Karnataka. The total value of the 3 projects of Rs 1,057.3 crore.
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Financial conditions:-
Analyzing the company’s financial condition, revenue plummeted by 52 percent from Rs 116.56 crore in Q4FY23 to Rs 55.42 in Q4FY24, however during the same period of time, net profit soared by 64 percent from Rs 5.17 crore to Rs 1.83 crore.
Ongoing project:-
The company’s biggest active projects include the development of the Chitradurga Branch Canal, worth Rs. 36.08 crore, and the construction of a bridge over the Krishna River on the Jamkhandi-Athani Road, at Rs. 60.65 crore.
Ratio analysis:-
The company’s critical ratios show that the return on equity zoomed from 11.12 percent in FY22-23 to 17.22 percent in FY23-24, while the return on capital employed magnified from 14.24 percent to 21.89 percent. The net profit margin (NPM) for fiscal year 23-24 is 5.22 percent.
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Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 65.94 percent while Retail shareholders own a 33.94 percent stake in the company and Foreign Institutional Investors own a 0.12 percent stake.
Company snapshot:-
Udayshivakumar Infra Limited constructs roads in Karnataka, including national highways, state highways, district roads, smart roads under PM’s Smart City Mission projects, smart roads under Municipal Corporations, Bruhat Bengaluru Mahanagara Palike (BBMP), and local area roads in various taluka places.
Written by:- Abhishek Singh
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