The shares of the Micro-Cap company, specializing in infrastructure and maintenance services for city gas distribution and has expanded into power distribution, water distribution, and renewable energy, jumped upto 3 percent upon securing multiple domestic orders totaling approximately Rs. 19.19 crore.
With a market capitalization of Rs. 176.55 Crores on Tuesday, the shares of Desco Infratech Limited rose by 2.5 percent after making a high of Rs. 232.00 compared to its previous closing price of Rs. 226.30.
Desco Infratech Limited, a company specializing in engineering and construction services for city gas distribution, renewable energy, water, and power sectors, has received multiple domestic orders worth Rs. 19.19 crore from Bharat Petroleum Corporation Limited, GAIL Gas Limited, and Torrent Gas Limited.
These contracts involve last-mile connectivity and direct marketing services for CGD (city gas distribution) projects in Karnataka, as well as operations and maintenance services in Rajasthan, and the orders will be executed as per contract terms.
Financials & Others
The company’s revenue rose by 70 percent from Rs. 21.58 crore to Rs. 36.81 crore in H2FY24-25. Meanwhile, the Net profit rose from Rs. 3.21 crore to Rs. 5.81 crore during the same period.
The company’s P/E ratio is 19.48, which is lower than the industry average of 22.08, indicating an attractive valuation. It also maintains a low debt-to-equity ratio of 0.19, reflecting strong financial stability.
Additionally, the company has delivered a solid average ROE of 22.76 percent and ROCE of 21.33 percent over the last three years. Its average net profit growth over the same period stands at an impressive 61.23 percent.
Desco Infratech Limited was founded in 2011 and is one of the oldest players in the City Gas sector, specializing in the installation, testing, and commissioning of piped natural gas and MDPE pipelines. It also offers gas-leak detection and emergency response services to ensure safety and uninterrupted supply. Over the years, the company has expanded into power cable installation, water distribution, and renewable energy projects across various regions.
The company has a strong domestic presence, with the highest revenue contributions from Gujarat (31.8%), Haryana (20.9%), and Uttar Pradesh (18.4%). Other key markets include Punjab (7.5%), Madhya Pradesh (3.9%), Rajasthan (1.4%), Tamil Nadu (0.4%), Karnataka (0.07%), and Delhi (0.04%).
The company has a marquee client base that includes leading names such as GAIL (India) Ltd, Bharat Petroleum, Indian Oil, Adani Gas, Gujarat Gas, Indraprastha Gas Limited, Maharashtra Natural Gas Ltd., Torrent Gas, IRM Energy, Reliance, and Bhagyanagar Gas Limited, among others.
Written by Sridhar J
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