Synopsis :- Fast-growing small-cap infrastructure company Vishnu Prakash R Punglia Ltd. saw a 6.36% increase in stock price following the Jaipur Development Authority’s ₹779.15 million work order for the construction of a road over bridge.
A small-cap firm that is among the fastest-growing infrastructure development companies in India has seen a 6.36 percent increase in stock price as a result of a new order from Jaipur Development Authority (JDA).
With the market capitalization of Rs. 2,136 crores, the shares of Vishnu Prakash R Punglia Ltd were trading at Rs. 171, up 6.36 percent from its previous day’s close price of Rs. 161.14 per equity share.
Work Order
A domestic work order worth Rs. 779.15 million has been given to VPRP ltd by the Jaipur Development Authority (JDA) for the building of a Road Over Bridge (ROB) at LC-67(A), Saligrampura Phatak, which is situated in Zone-14, JDA Jaipur, between km 107/5 and 107/6 on the Jaipur–Sawai Madhopur railway line.
About the Company & Others
One of the fastest-growing infrastructure development firms in India is Vishnu Prakash R Punglia Limited, established in 1986. It designs and builds infrastructure projects in nine Indian states and one union territory for the Central and State Governments, autonomous organizations, and private customers.
VPRPL serves mainly public and private entities through its four primary business segments: Water Supply Projects (WSPs), Railway Projects, Road Projects, and Irrigation Network Projects. The business focuses on end-to-end water supply solutions, which include pipeline networks, pumping stations, and WTPs. Its order book is strong, totaling ~Rs. 5,363 crores to be completed in 24–36 months. With an internal staff and more than 500 pieces of construction equipment, it guarantees little dependence on outside parties. For better debt and cash flow management, VPRPL only takes on EPC contracts (with or without O&M) for road projects, staying away from HAM/BOT models.
The company’s revenue for FY2024–2025 decreased by 16.04 percent year over year from 1474 crores to Rs. 1237 crores. Net profit saw a sharp decline of 55 percent, from Rs. 122 crore to Rs. 59 crore.
At the moment, the company’s P/E ratio is 36.5x as compared to its industry P/E 24.3x, and its ROE and ROCE are 7.81 percent and 11.4 percent, respectively. The D/E ratio of the company stands at 0.91.
Written by Akshay Sanghavi
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