The shares of a Micro-Cap company, primarily a highway maintenance and construction company, specializing in a range of infrastructure services, jump 2 percent upon receiving a work order from the Varanasi Aurangabad NH-2 Tollway Pvt. Ltd.
With a market capitalization of Rs. 344.37 crores on Tuesday, the shares of Markolines Pavement Technologies Ltd jumped upto 2.3 percent, making a high of Rs. 158 per share compared to its previous closing price of Rs. 154.40 per share.
Markolines Pavement Technologies Ltd, engaged in highway operations and maintenance services, has received a new domestic work order from Varanasi Aurangabad NH-2 Tollway Pvt. Ltd order worth Rs. 24.75 crore
The order is for rehabilitation and overlay (DBM, BC & SMA) work as part of periodic maintenance between Km 825 and Km 843 in Uttar Pradesh, and the order is from a domestic company and is expected to be completed by June 30, 2025.
Financials & Others
The company’s revenue declined by 9.7 percent from Rs. 216 crore to Rs. 195 crore in H2FY24-25. Meanwhile, Net profit rose from Rs. 11 crore to Rs. 18 crore during the same period.
As of March 31, 2025, the company’s closing order book stands at Rs. 357 crore, with Rs. 70 crore in Major Maintenance and Rs. 287 crore in Specialized Construction Activities. Additionally, over Rs. 500 crore worth of orders are currently under discussion.
The company was founded in 2002 with a single road marking product, the company has grown into India’s largest highway maintenance firm. It is the country’s first listed highway O&M company on BSE, with a PAN-India presence and the only one with a dedicated Technology Centre for pavement preservation.
The company has a strong portfolio of marquee clients, including Cube Highways, ROADIS, L&T, NHAI, Surat Municipal Corporation, HCC, Ashoka Highway Concessions, Interise, and others.
The company has a P/E ratio of 15.06, well below the industry average of 40.52, and a PEG ratio of 0.14, indicating potential undervaluation. It maintains a low debt-to-equity ratio of 0.36 and has delivered a solid 3-year average growth of 23 percent in revenue and 19.63 percent in net profit.
Written by Sridhar J
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