Synopsis:
Ceigall India is the L1 bidder for a ₹509.20 crore GMADA road project in Aerotropolis City, S.A.S Nagar, with a 24-month timeline and 36-month defect liability.
The shares of an Infra company, specializing in structural projects, including elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways, jumped upto 4 percent upon emerging as the L1 (lowest) bidder for a project awarded by the Greater Mohali Area Development Authority (GMADA).
With a market capitalization of Rs. 4,802.83 crores on Monday, the shares of Ceigall India Limited jumped upto 3.39 percent, making a high of Rs. 278.40 compared to its previous close of Rs. 269.25.
What Happened
Ceigall India Limited, engaged in structural projects, including elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways, has emerged as the L1 (lowest) bidder for a road construction project awarded by the Greater Mohali Area Development Authority (GMADA).
The project involves the development of internal roads and associated civil, public health, and electrical infrastructure in Pockets B, C, and D of Aerotropolis City, S.A.S Nagar. The contract is valued at Rs. 509.20 crore (including GST) under an item rate model. The project will be completed over 24 months, with a 36-month defects liability period.
Financials & Others
The company’s total revenue rose by 1.92 percent from Rs. 822 crore to Rs. 838 crore in Q1FY25-26. Meanwhile, Net profit declined from Rs. 78 crore to Rs. 51 crore during the same period.
The company demonstrates a strong financial performance with a 3-year average Return on Equity (ROE) of 28.5%, a current ROE of 20.9%, and a Return on Capital Employed (ROCE) of 19.4%. Its debt-to-equity ratio stands at a moderate 0.76, indicating a balanced approach to leverage.
Along with it, the stock is attractively valued with a Price-to-Earnings (P/E) ratio of 17.9, which is lower than the industry average of 20.4. Additionally, the PEG ratio of 0.56 suggests the stock may be undervalued relative to its earnings growth potential.
Ceigall India Limited, founded in 2002 and headquartered in Ludhiana, Punjab, is a leading infrastructure construction company specializing in complex projects such as elevated roads, highways, expressways, bridges, tunnels, and railway overpasses. The company is recognized for its expertise in Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) projects.
It has a list of marquee clients, including prestigious organizations such as the National Highways Authority of India (NHAI), the Ministry of Road Transport and Highways, and the Military Engineer Services. The company also works closely with the Public Works Department in Punjab, IRCON International Limited, the Bihar State Road Development Corporation Limited, and more.
The company’s order book as of June 2025 shows a balanced mix of projects, with 61.7% in HAM projects, 36.9% in EPC projects, and a small 1.4% in BOT projects. This diversified portfolio highlights its strong presence across different project execution models.
In terms of project types, the majority (83.4%) of orders are in roads, highways, and flyovers, followed by railways and metros at 13.1%. Other segments include tunnels (2%), bus terminals (1.4%), and airport runways (0%), indicating a focus on large-scale infrastructure development.
Written by Sridhar J
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