Introduction:
Shares of SRM Contractors soared by almost 5% on Monday, accomplishing Rs 390.Forty five on the BSE, after the corporation announced a huge order win from the National Highway Authority of India (NHAI). The order, worth Rs 106 crore, includes vital infrastructure works at the Jetpur-Somnath stretch of National Highway 15. Notable factors of the assignment consist of the development of several flyovers, underpasses, and a carrier road, designed to decorate site visitors go with the flow and safety in the area.
The scope of work includes long-term rectification of identified black spots along the highway, with a focus on key junctions such as Sornath and Keshod. Additionally, the project will feature infrastructure enhancements at Gadu Location and Santipara Patiya.
The company has committed to completing the project within 18 months.
This news has sparked a positive response from investors, driving SRM Contractors’ stock price up by 4.80% during Monday’s intraday trade. The market is clearly reacting favorably to this fresh injection of revenue, which is expected to boost the company’s financial performance in the coming quarters.
SRM Contractors’ Stock Soars 5% Following Rs 106 Crore NHAI Order Win:
In its latest financial results, SRM Contractors reported an 11.7% drop in net sales for Q2FY25, totaling Rs 95.25 crore, compared to Rs 107.87 crore in the same period last year. However, the company saw an 8% increase in net profit, which rose to Rs 8.90 crore, up from Rs 8.24 crore in Q2FY24. EBITDA also saw a modest increase, climbing 2.03% to Rs 16.07 crore.
SRM Contractors has seen a remarkable surge in its stock price over the last six months, with shares gaining 112% compared to a modest 2% increase in the BSE Sensex over the same period. This impressive stock performance is a testament to the company’s strong growth prospects,
fueled by strategic project wins like the NHAI order.
The company specializes in road construction and civil infrastructure projects, including bridges, tunnels, and slope stabilization. It operates primarily in the Union Territories of Jammu & Kashmir and Ladakh, where it executes projects both as an EPC contractor and through sub-contracting agreements.
Conclusion:
With a market capitalization of Rs 878.53 crore, SRM Contractors appears well-positioned for further growth, especially given its expanding project portfolio and the increasing demand for infrastructure development in India.
FAQ:
1. What caused the surge in SRM Contractors’ stock price?
SRM Contractors’ stock price surged by nearly 5% after the company secured a major order worth Rs 106 crore from the National Highway Authority of India (NHAI). The project involves key infrastructure works on the Jetpur-Somnath section of NH 15, including flyovers, underpasses, and a service road, which has driven investor optimism.
2. What is the value of the new order secured by SRM Contractors?
The order is valued at Rs 106 crore and will involve long-term rectification work on black spots along the Jetpur-Somnath stretch of NH 15. This project is expected to improve safety and traffic flow in the region.
3. What does the NHAI order entail?
The NHAI order includes the construction of a vehicular underpass at Sornath Junction, a flyover at Keshod Junction, a flyover and light vehicular underpass at Gadu Location, and a service road at Santipara Patiya. The project aims to address traffic bottlenecks and improve road safety.
4. How long will SRM Contractors take to complete the project?
SRM Contractors is expected to complete the project within 18 months, according to an exchange filing made by the company.
5. How did SRM Contractors perform financially in the recent quarter?
For the second quarter of FY25, SRM Contractors reported net sales of Rs 95.25 crore, reflecting an 11.7% decline from the previous quarter. However, the company’s net profit increased by 8%, reaching Rs 8.90 crore, compared to Rs 8.24 crore in the same period last year.
6. Has SRM Contractors seen growth in its stock price recently?
Yes, SRM Contractors has seen impressive growth in its stock price, gaining 112% over the past six months. In comparison, the BSE Sensex has risen by just 2% during the same period, highlighting the strong performance of SRM Contractors’ stock.
7. What is SRM Contractors’ area of expertise?
SRM Contractors is an Engineering, Procurement, and Construction (EPC) company specializing in road construction, bridges, tunnels, slope stabilization, and other civil infrastructure projects. The company primarily operates in the Union Territories of Jammu & Kashmir and Ladakh.
8. How does the NHAI order impact SRM Contractors’ future growth?
The NHAI order is expected to contribute significantly to SRM Contractors’ future growth by providing a steady stream of revenue over the next 18 months. It highlights the company’s strong position in India’s infrastructure development sector, which is poised for further expansion.
9. What is SRM Contractors’ market capitalization?
As of the latest data, SRM Contractors has a market capitalization of Rs 878.53 crore, reflecting its growing presence and strong investor confidence in the company’s future prospects.
10. Where does SRM Contractors operate?
SRM Contractors primarily operates in the Union Territories of Jammu & Kashmir and Ladakh, executing both EPC projects and sub-contracting assignments for infrastructure construction. The company is known for its expertise in road construction and civil infrastructure projects.
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