Penny stock under Rs 25: This civil construction company bags new order worth Rs 10,03,84,892

The stock is up by 42.6 per cent from its 52-week low of Rs 17.35 per share.

ARSS Infrastructure Projects Limited has been awarded a significant work order valued at Rs 10,03,84,892.00 for the execution of various infrastructure projects. The client for this project is a domestic joint venture, M/s ABCISCPL-SIPS JV, with ARSS Infrastructure Projects Limited being awarded the contract under Work Order No. ABCI-SCPLSIPS JV/ARSS/24-25/01.

The contract entails a broad range of civil engineering tasks including bridge works (Schedule A3), earthwork and formation rehabilitation (Schedule B1), and Bridge works encompassing substructure, superstructure (RCC & Steel), and miscellaneous works (Schedule B2). The project is expected to be completed within a mutually agreed timeframe of 18 months. It's important to note that one of ARSS Infrastructure Projects Limited's related parties is a member of the client joint venture, holding a 25 per cent stake. However, the contract has been awarded at arm's length, ensuring fair market value and avoiding any potential conflict of interest.

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ARSS Infrastructure Projects Ltd, founded in 2000, specializes in executing various civil and infrastructure projects across India. Their expertise includes railway construction (earthworks, bridges, track laying etc.), road and highway building, irrigation systems, and development of power, marine, and urban infrastructure. With a successful track record of completing over 200 kilometres of railways and 300 kilometres of roads, their clientele boasts prestigious names like the Ministry of Railways, the State Government of Orissa and the National Highway Authority of India.

Currently, the stock is not trading on both exchanges as it is Trading Restricted - On account of IBC/ Recommencement post-IBC. On June 03, 2024, the stock was last traded, on that day, the stock plunged 5 per cent to Rs 24.74 per share from its previous closing of Rs 26.04. The company has a market cap of Rs 56.25 crore and working capital requirements have been reduced from 182 days to 136 days. The stock is up by 42.6 per cent from its 52-week low of Rs 17.35 per share.

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