A prominent infrastructure development company, known for its expertise in railway construction and civil engineering projects, has secured a significant highway project. The recent acquisition of a Rs. 48.34 crore contract from NHAI for upgrading NH-24 in Uttar Pradesh demonstrates their continued growth in infrastructure development.
Share Price Movement
The share price of K2 Infragen Limited hit an upper circuit of 5 percent to Rs. 129.70 per share on Thursday, an increase from its previous close of Rs. 123.55 per share. The market capitalisation now stands at approximately Rs. 163.66 crore as of January 16, 2025.
What driving price?
K2 Infragen Limited has won a Rs. 48.34 crore contract from NHAI through PPP Infrastructure Pvt Ltd to upgrade a two-lane road in Uttar Pradesh. This boosts K2’s sales pipeline to Rs. 1000 crores. The company plans expansion in India and Africa, aiming for consistent growth.
Financial Highlights
In FY2024, the company’s revenue grew 45% from Rs. 75 crore in FY23 to Rs. 109 crore in FY24. Profits increased slightly from Rs. 11 crore in FY23 to Rs. 12 crore in FY24, showing a growth rate of 9%.
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Competitors
K2 Infragen Ltd. competes in the infrastructure sector alongside companies like AAA Technologies., Aafloat Textiles, Aakar Engineering & Manufacturing Company, Enviro Infra Engineers, Ganesh Green Bharat and others. K2 Infragen is currently trading at a P/E of 15, which is lower than the industry P/E of 34.
Market Outlook
India’s infrastructure sector is on track for significant growth to meet its 2025 economic goal of US $5 trillion. With investments from government initiatives, like the National Infrastructure Pipeline, and a 50-year interest-free loan for state projects, the country is boosting transport, real estate, and urban development.
Infrastructure investments are expected to rise from 5.3% of GDP in FY24 to 6.5% by FY29, driven by substantial government and private investments, including US $1.4 trillion by 2025 and ongoing projects in railways, aviation, and highways.
Written By Fazal Ul Vahab C H
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