The shares of the fastest-growing project management consultancy firm jumped 2 percent after the company received a Letter of Acceptance from West Central Railway Construction Organization for Rs 11.05 crore.
Price Action
With a market capitalization of Rs 259.84 crore, the shares of Dhruv Consultancy Services Ltd were trading at Rs 137.00 per share, increasing around 4.96 percent as compared to the previous closing price of Rs 108.85 apiece.
Reason for rise
The company’s shares have seen bullish movement after Dhruv Consultancy Services Ltd in a Joint Venture with Balaji Rail Road Systems Private Limited received a Letter of Acceptance towards appointment as General Consultant from the West Central Railway Construction Organization.
Additionally, the company secured its first General Consultancy contract in the railway sector, the largest ever awarded, valued at Rs. 11.05 crore. The contract spans 24 months, marking a significant milestone in its expansion into railway consultancy services.
Company Profile
Dhruv Consultancy Services Limited is an India-based infrastructure consultancy company. It is engaged in designing, engineering, procurement, construction, and integrated project management services. Its business segments include Highways, which includes consultancy for the planning and construction of national highways.
Financial performance
Examine the company’s financial condition, revenue surged by 43 percent from Rs 22.89 crore in Q2FY24 to Rs 32.67 crore in Q2FY25, and during the same time frame, net profit increased by 0.5 percent from Rs 1.88 crore to Rs 1.89 crore.
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Order Book and Growth Strategy
The company holds a ₹347 Crore domestic order book for execution over 2-3 years and is expanding internationally with 145 EOIs in Africa and Southeast Asia. It secured its first $5 lakh order in Mozambique and plans bids worth ₹1,500 Crore, targeting ₹800-1,000 Crore.
Capital Raise and Utilization
The company recently raised ₹33.24 Crore via a preferential allotment of 3,077,800 equity shares at ₹108 each, allocating funds for advanced testing equipment (₹9-10 Crore), debt repayment, and boosting bank guarantee limits to support bidding activities.
Operational Efficiency
The company consistently scores above 95 in technical evaluations, boosting competitiveness in bids where technical scores hold 80% weightage. Management expects the government’s doubling of infrastructure project execution speed to drive business growth and enhance profitability through securing high-value projects.
Future Outlook
Management expects improved revenue and margins in H2 FY25, driven by post-mobilization project execution and seasonal infrastructure sector trends. Higher EBIT and PAT are anticipated, with plans to maintain a balanced revenue mix, targeting 30-35% of the order book from international markets in 3-4 years.
Upcoming Projects
The company’s key upcoming projects include a ₹5.7 crore High-Speed Corridor in Gujarat and a ₹4.74 crore NHAI Aligarh-Palwal Highway project. Management plans to share further details on timelines and execution in future investor meetings.
Written by Abhishek Singh
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