Synopsis:
Konstelec Engineers jumped sharply after securing an order worth Rs 13 crore from Reliance Industries Limited for the execution of Electrical & Instrumentation works of Wafer Main Plant at Jamnagar, Gujarat.
The shares of this leading EPC service provider are in focus after securing a key contract from one of the largest companies in India. In this article, we will dive more into the details.
With a market capitalization of Rs 93.6 crore, the shares of Konstelec Engineers Ltd made a day high of Rs 62.20 per share, up by 5 percent from its previous day closing price of Rs 59.50 per share. In the last one year, the stock has corrected by over 65 percent, as compared to NIFTY 50’s positive return of 0.74 percent.
About the order
Konstelec Engineers, through a stock exchange filing, announced that it has obtained a new work order from Reliance Industries Limited valued at Rs. 13.31 crore (basic price).
The contract is about the implementation of Electrical and Instrumentation (E&I) works for the Wafer Main Plant at Jamnagar, Gujarat, one of the major industrial hubs of Reliance. The firm aims to accomplish this project by December 31, 2025, showing the company’s capacity to provide a complete solution of specialized engineering and EPC services in a short period of time.
This new contract win for Konstelec Engineers extends the company’s engagement with Reliance Industries and consolidates its position as a dependable EPC partner for heavy industrial and infrastructure projects.
Konstelec Engineers Limited is presently holding a portfolio of projects with a total value of Rs. 720 crores. Of these, works valued at Rs 331 crore have been completed, and projects worth Rs 389 crore are still ongoing. Besides, the company has secured new orders worth Rs 231 crore to date in FY25, which is indicative of a consistent business trend and a robust project pipeline.
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Financial Highlights
The company’s revenue for H2 FY25 came in at Rs 109 crore, up by 30 percent from Rs 84 crore in H1 FY25. Regarding its profitability, the company reported a net profit decline of 75 percent to just Rs 1 crore in H2 FY25 as compared to Rs 4 crore in H1 FY25.
It is to be noted that the company is not able to maintain consistency across the quarters, which is visible in the company’s topline and the bottom line, signaling operational inefficiencies.
The company has delivered a poor ROE and ROCE of 4.74 percent and 9.24 percent respectively, and is currently trading at a P/E of 20.31x as compared to its industry average of 21.26x.
Konstelec Engineers Limited is a top EPC (Engineering, Procurement, and Construction) service company with a rich experience of almost 30 years in implementing electrical, instrumentation, and automation solutions. Essentially, the company is a one-stop shop for any project, most efficiently and on time a strong focus on quality and reliability, from planning and design to installation and commissioning.
By far, the core of the company’s services revolves around the engineering design, procurement of materials, project management, operations and maintenance, and commissioning. Konstelec serves the following district industries: petrochemicals, chemicals, cement, textiles, and commercial infrastructure, as the company is committed to providing end-to-end solutions that facilitate operations and ensure lasting performance.
Written by Satyajeet Mukherjee
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