The shares of this small-cap company gained up to 5 percent after the company announced a lower bidder for the tender awarded by Kolkata Municipal Corporation worth Rs 681.49 crore.
With a market capitalization of Rs 4,514.10 crore, EMS Limited‘s shares were trading at Rs 812.90 per share, increasing around 0.31 percent compared to the previous closing price of Rs 815.40 apiece.
Reason for rise:-
According to the exchange filing, EMS Limited announced a lower bidder for the biggest tender which is awarded by Kolkata Municipal Corporation for Design, Build, Test, and Commissioning of Pollution abatement work to be executed within 36 months (including a trial run for 3 months) and O & M 15 years thereafter. worth Rs 681.49 crore.
Financial performance:-
The company’s revenue soared 49%, rising from Rs 138 crore in Q1FY24 to Rs 206 crore in Q1FY25, while net profit zoomed by 61%, growing from Rs 23 crore to Rs 37 crore during the same period, reflecting strong financial performance and continued business growth.
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Remarkable Return:-
The stock has given a multi-bagger return of 116 percent in just six months and a 190.28 percent return in a year, A shareholder’s investment of Rs. 1 lakh in the firm is worth Rs. 2.90 lakh in a year.
Order book & expansion plan:-
EMS Ltd’s unexecuted order book surpasses ₹1,800 crore, with a bid pipeline of over ₹4,000 crore. The company expects to convert 10%-15% of bids into orders within 1-2 months. While tender participation slowed due to elections, recent wins signal a recovery.
The business intends to enter the real estate sector as an EPC contractor through collaborative development with real estate companies, and revenue will be based on a fixed per-square-foot rate that is unaffected by the sale price of the projects.
Management Guidance:-
EMS Ltd’s management is confident of maintaining EBITDA margins of 24%-26% by carefully selecting projects, especially under the HAM model. The company aims to preserve strong margins while exploring growth opportunities in road EPC, without losing focus on its core water sector projects.
Future Outlook:-
EMS Ltd’s management is optimistic about strong growth in the water sector, driven by government initiatives and budget allocations. The company projects 25%-30% revenue growth for FY25, targeting ₹1,000 crore, while focusing on high margins and expanding the order book with new projects.
Company snapshot:-
EMS Limited provides sewerage solutions, water supply systems, water and waste treatment plants, electrical transmission and distribution, road and allied works, and operates and maintains wastewater scheme projects (WWSPs) and water supply scheme projects (WSSPs) for government authorities and bodies.
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Written by:- Abhishek Singh
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