Rs 9,470.80 crore order book & Rs 1,041.90 crore order bagged: Civil construction company reports PAT growth of 76.6 per cent in Q1FY25

The shares of the company have a PE of 23.3x, an ROE of 40 per cent and an ROCE of 30 per cent.

Ceigall India Limited is a rapidly expanding EPC company boasting an impressive three-year revenue CAGR as of Fiscal 2024, outpacing its peers with a remarkable 43.10 per cent year-on-year revenue growth in the same fiscal. The company has completed over 34 projects, including a diverse portfolio of EPC, HAM, O&M and Item Rate contracts, within the roads and highways sector. Currently, Ceigall is actively engaged in 18 projects, encompassing both EPC and HAM models, which span a range of complex infrastructure development, including elevated corridors, bridges, flyovers, rail over-bridges, tunnels, expressways, runways, metro projects and multi-lane highways.

Ceigall India Limited, a leading EPC company specializing in infrastructure projects, has announced its financial results for the first quarter of FY25. The company demonstrated strong growth in both revenue and profit, reflecting its robust execution capabilities and strategic focus.

In the quarter ending June 30, 2024, Ceigall India Limited achieved a record-high revenue of Rs 822.4 crore, representing a growth of 26.5 per cent compared to the same period last year. This growth was driven by the company's successful execution of large-scale infrastructure projects, including elevated roads, flyovers, bridges and tunnels. Additionally, Ceigall received a bonus of Rs 17.1 crore during the quarter, further contributing to its revenue growth.

The company's profitability also improved significantly. EBITDA for Q1FY25 stood at Rs 144.1 crore, up from Rs 87.3 crore in the previous year. This represents a growth of 65.1 per cent year-on-year. The EBITDA margin for the quarter was 17.5 per cent, compared to 13.4 per cent in the same period last year. Similarly, profit after tax (PAT) for Q1FY25 increased to Rs 77.9 crore from Rs 44.1 crore in Q1FY24, representing a growth of 76.5 per cent. The PAT margin for the quarter was 9.5 per cent, compared to 6.8 per cent in the previous year.

Ceigall India Limited's strong financial performance was underpinned by its healthy order book, which stood at Rs 9,470.80 crore as of June 30, 2024. This provides the company with a solid foundation for sustained revenue growth in the coming quarters. Furthermore, Ceigall has been actively reducing its debt levels. In August 2024, the company repaid Rs 413.4 crore of its existing debt, aligning with its commitments outlined in its Red Herring Prospectus (RHP).

Ceigall India Limited has secured two significant new contracts, further strengthening its position in the infrastructure sector. The company has been awarded the prestigious contract for the Bhuvaneshwar Metro Project, valued at Rs 898.9 crore. This contract involves the design and construction of elevated viaducts and stations for Bhubaneswar Metro Phase-1. Additionally, Ceigall has secured a Rs 143 crore project from the Uttar Pradesh State Road Transport Corporation for the development of the Kanpur Central Bus Terminal. This public-private partnership (PPP) project will involve the construction of a modern bus terminal and a commercial complex. The project has a lease period of 90 years, including a construction period of two years.

The company has a market cap of over Rs 6,900 crore. The shares of the company have a PE of 23.3x, an ROE of 40 per cent and an ROCE of 30 per cent. On Wednesday, shares of Ceigall India Ltd plunged 1.89 per cent to Rs 396.60 per share with an intraday high of Rs 409.85 and an intraday low of Rs 395. The stock’s 52-week high is Rs 425 and its 52-week low is Rs 368.30. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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