Shares of this small-cap company clocked 5 precent upper circuit after receiving an order worth Rs. 358 crores from the Uttarakhand Government. The company made its stock market debut recently in September 2023.
With a market capitalization of Rs. 2,431 crores, the shares of EMS Ltd started Tuesday’s trading session on a higher note at Rs. 437.70 compared to its previous close of Rs. 416.90. Within a few minutes of the opening bell, the shares hit a 5 percent upper circuit at Rs. 437.70 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a Letter of Intent (LoA) worth Rs. 358.56 crores from the Uttarakhand government to develop a sewage system in Dehradun and Raipur.
As a part of the project, EMS will be engaged in the development of a sewage system for Raipur in septage management in Dehradun. Furthermore, this includes operation and maintenance for five years.
Coming onto the company’s financial statement, the revenue zoomed by 53 percent from Rs. 138 crores in the June quarter to Rs. 211 crores during the September quarter. In addition, the net profit magnified by 96 percent from Rs. 23 crores to Rs. 45 crores during the same time frame.
As of March 2023, the company is operating and maintaining 13 projects including WWSPs, WSSPs, STPs and HAM aggregating Rs. 1,389 Crs and 5 O&M projects aggregating Rs. 99 Crs i.e. unbilled amount as of February 28, 2023, which is spread across five states.
The company gets revenue from across India, primarily from Uttar Pradesh which contributes 49 percent of the revenue, 23 percent of the revenue comes from Rajasthan, 17.5 percent from Bihar, 10 percent of the revenue inflows from Uttarakhand and the remaining 0.5 percent revenue is contributed from Madhya Pradesh.
Headquartered in Delhi, EMS was incorporated in 2010. The company specialises in providing turnkey services in water and wastewater collection, treatment and disposal and provides complete, single-source services from engineering and design to construction and installation of water, wastewater and domestic waste treatment facilities.
Written By Vaibhav Patil
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