The shares of the Micro-Cap stock specializing in the construction and engineering business and large-scale projects for both government and private sectors, jumped upto 6 percent upon receiving a Letter of Acceptance from HSIIDC Industrial Estate Karnal.
With a market capitalization of Rs. 687.53 crores on Thursday, the shares of Deepak Builders and Engineers India Ltd, making a high of Rs. 151.40 per share compared to its previous closing price of Rs. 142.15 per share.
Deepak Builders and Engineers India Ltd, engaged in the construction and engineering business and large-scale projects for both the government and private sectors, has received a Letter of Acceptance from the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) for a significant project.
The company will be responsible for the planning, design, engineering, procurement, and construction of the Unity Mall at Sector-37, HSIIDC Industrial Estate, Karnal, Haryana, on an EPC (Engineering, Procurement, and Construction) mode basis.
The total value of the project is Rs. 120.85 crores, excluding GST, and Rs. 142.60 crores, including GST. The project is expected to be completed within 24 months from the start date, after which there will be a 36-month defect liability period and an additional 12 months for operations and maintenance.
Financials & Others
The company’s revenue rose by 18.1 percent from Rs. 191.29 crore to Rs. 225.92 crore in Q4FY24-25. Meanwhile, the Net profit declined from Rs. 33.82 crore to Rs. 11.2 crore during the same period.
The company has a strong financial profile with a low P/E ratio of 11.67 compared to the industry average of 22.08, indicating it may be undervalued. It also maintains a low debt-to-equity ratio of 0.33 and has delivered a healthy average ROE of 17.37% over the last three years. Additionally, promoter shareholding is high at over 65%, reflecting strong confidence in the business.
Deepak Builders & Engineers India Ltd is an integrated engineering and construction company established in 2017, specializing in large-scale projects for both the government and private sectors.
The company executes a wide range of projects, including administrative and institutional buildings, hospitals, industrial facilities, stadiums, residential complexes, and infrastructure works like flyovers and railway stations. Deepak Builders has built a reputation for timely delivery and quality construction across various sectors, with a focus on innovation and sustainable infrastructure.
Deepak Builders & Engineers India Ltd has several marquee government and institutional clients among its portfolio, including the Central Public Works Department (CPWD), Indian Railways, Indian Oil Corporation Limited, AIIMS New Delhi, PGIMER Chandigarh, and Engineers India Limited.
The company also serves organizations like HSCC (India) Limited, WAPCOS Limited, Greater Mohali Area Development Authority (GMADA), Punjab Cricket Association, and Ludhiana Smart City, reflecting its strong reputation and trust among top-tier public sector clients.
Written by Sridhar J
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