The shares of a microcap company, which operates as an engineering, procurement, and construction (EPC) contractor for electro-mechanical and instrumentation projects, offering services for transmission and substation projects, water management systems, solar rooftops, power plants, etc are in focus after the company secured a contract for the supply of a 66 KV substation.
Price Action
The shares of HEC Infraprojects Ltd, with a total market capitalization of Rs 105.08 Crore, reached an Intraday high of Rs 103.87 per share on Monday, gaining around 1.3 percent. As of noon, the shares were trading at Rs 103.6 per share, which was 1 percent higher than the previous closing price of Rs 102.58.
The shares generated impressive returns of 166 percent in the past three years and 361 percent return in the past five years.
What Happened
As per a press release dated March 7, 2025, the company received a work order from Agrawal Metal Works Limited, for the supply, installation, testing, and commissioning of the 66 KV substation for the feeder bay and client bay.
The total value of the order is Rs.6.07 crore, and the period by which the order is to be executed is 12 months.
The company is planning to bid for similar kinds of projects in the future with private and government departments in other states.
A 66 kV substation is a part of an electrical transmission and distribution system designed to transform high-voltage electricity from 66 kilovolts (kV) to lower voltages for distribution to consumers. These substations are crucial for efficient power transmission and distribution.
Financials
The company reported an increase of 61 percent YoY in revenue from operations from Rs 17.09 Crores in Q3FY24 to Rs 27.54 Crores in Q3FY25. However, their Net Profits declined by 62 percent from Rs 3.78 Crores to Rs 1.43 Crores over the same period.
Indian Engineering Industry
India’s engineering sector is growing rapidly, with the Engineering Export Promotion Council (EEPC) leading the promotion of engineering goods and services. The electrical equipment market, the largest sub-sector, is expected to grow from USD 52.98 billion in 2022 to USD 125 billion by 2027, at a CAGR of 11.68 percent. Additionally, R&D investment in engineering is projected to reach USD 63 billion by 2025.
About HEC Infraprojects Ltd
The company is a leading EPC Contractor firm for electro-mechanical & Instrumentation projects. The firm is in the field of execution for all kinds of electro–mechanical contracting work. It offers services for various sectors, including transmission and substation projects, solar systems, and industrial electrification. Some of their well-known clients include Reliance Industries, Hindalco, General Motors, ELGi, and Mother Diary.
Written By Adhvaitha Nayani
