Penny stock under Rs 50 & Rs 3,179 crore order book: Civil construction company bags new orders worth Rs 310.89 crore from Royal Rides Pvt Ltd & Yucca Promoters LLP
The stock is up by 41.3 per cent from its 52-week low of Rs 32 per share and a whopping 440 per cent in 5 years.
Vascon Engineers Limited has secured two significant domestic contracts totalling Rs 310.89 crore. The first order, valued at Rs 225.46 crore (excluding GST and labour cess), comes from Royal Rides Pvt Ltd in Goa. This "Design and Build" project entails the construction of two terminal buildings along with ropeway tower works in Panaji and Reis Magos and is expected to be completed within 36 months from the Letter of Intent.
The second order, awarded by Yucca Promoters LLP in Pune, is for the construction of a commercial building, including excavation and backfilling, in Kalyani Nagar. This Rs s85.43 crore (including GST) project, secured on a "lumpsum basis," has a completion timeline of 3 years. Both these new acquisitions underscore Vascon Engineers' continued growth in the domestic construction sector.
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Order book: As of December 31, 2023, the company's order book stands at Rs 3,179 crore (Forming a healthy order book of 4x FY24 EPC revenues).
Today, shares of Vascon Engineers Ltd gained 9.13 per cent to Rs 45.20 per share from its previous closing of Rs 41.42 per share with a spurt in volume by more than 4 times on BSE. The stock’s 52-week high is Rs 83.75 per share and its 52-week low is Rs 32 per share.
Vascon Engineers Ltd., established in 1986, is a construction engineering company in India with a presence in the real estate business, having an asset-light model and clean room partition manufacturing business. Talking about the financials, Vascon Engineers has a market cap of over Rs 900 crore. The shares of the company have a PE of 21x whereas the industry PE is 32x. The stock is up by 41.3 per cent from its 52-week low of Rs 32 per share and a whopping 440 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.