A micro-cap company came into focus after it announced the receipt of a mechanized cleaning contract worth Rs.20.27 crores from the Ministry of Railways. The development sparked positive investor sentiment, pushing the stock up by nearly 3 percent in today’s trading session.
During Thursday’s trading session, shares of Dynamic Services & Security Ltd reached an intra-day high of Rs.167.00 apiece, rising 3.4 percent from its previous closing price of Rs.161.45 apiece. However, the stock retreated later and is trading at Rs.164.00 apiece.
Contract Details
The Ministry of Railways, North East Frontier Railway, has awarded a mechanized cleaning contract to Dynamic Services & Security Ltd. The contract involves cleaning operations at Guwahati Railway Station and its surrounding circulating areas.
This domestic contract will be executed over three years, starting from July 1, 2025, and concluding on July 1, 2028, covering a total of 1,096 days. The total value of the contract stands at Rs. 20.27 Crores, and the agreement is governed by general terms and conditions set by the Ministry.
Services Offered
Dynamic Services & Security Ltd provides a broad range of services across various sectors. Its security services include guarding, custodial duties, risk analysis, fire control, evacuation, and consultancy for corporate and industrial clients. The company also offers integrated facilities management such as mechanized cleaning, housekeeping, electrical and mechanical maintenance, guest house, and pantry management. It supplies skilled and unskilled manpower to both government and corporate clients.
In addition, the firm offers catering and conservancy services, including food supply, sanitation, and housekeeping for institutions. Other offerings include logistics, IT-enabled services, digitalization, web development, and renewable energy projects, including a 720KW solar project in West Bengal.
The company’s clientele includes various government agencies such as the Indian Army, Navy, Air Force, Indian Railways, and Webel Technology Limited. It also serves clients from the corporate sector, retail industry, educational institutions, banks, ATM centers, and small to medium-sized industries.
Financial Performance
According to its recent financial updates, Dynamic Services & Security Ltd reported consolidated revenue of Rs.201 crores in H2 FY25, marking a 209.23 percent increase from Rs.65 crores in H2 FY24 and a 175.34 percent rise from Rs.73 crores in H1 FY25.
The company’s net profit rose to Rs.14 crores in H2 FY25, reflecting a 180 percent jump from Rs.5 crores in H2 FY24 and a 100 percent increase over Rs.7 crores reported in H1 FY25.
The company has a Return on Capital Employed (ROCE) of 12.25 percent and a Return on Equity (ROE) of 9.14 percent. Its Price-to-Earnings (P/E) ratio stands at 13.08, lower than the industry average of 41.59. Furthermore, the company maintains a current ratio of 7.35, a debt-to-equity ratio of 0.64, and an Earnings Per Share (EPS) of Rs.12.34.
Written by – Siddesh S Raskar
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