Rs 3,800 crore order book: This multibagger infrastructure company bags 2 new order worth Rs 900 crore for water supply systems!

Company has 51 ongoing projects with total work awarded amounting to Rs 6,183.58 crore, of which Rs 2,384.05 crore worth of work has been executed.

Vishnu Prakash R Punglia Limited soared more than 11 per cent in morning trade as it witnessed the following development. The stock price zoomed to its all-time high of Rs 242.

In a significant development for Vishnu Prakash R Punglia Limited, the company has successfully clinched a Letter of Award from the Office of the Program Director, Uttarakhand Urban Sector Development Agency, under the Urban Development Department of the Government of Uttarakhand. The awarded contracts pertain to the execution of key water supply projects, aligning with the company's commitment to infrastructural development.

The awarded projects include:

WS-HDW-03: Development of Water Supply System with 18 years O&M, in Haldwani, Uttarakhand (Package 3)

Project Cost: Rs 525.49 crore

Development of Water Supply System with 18 years O&M, at Kotdwar (Zone 2), Uttarakhand

Project Cost: Rs 373.21 crore

The substantial project costs involved underscore the magnitude of these ventures, signalling a promising revenue stream for Vishnu Prakash R Punglia Limited. The awarded contracts are expected to contribute significantly to the company's top-line and bottom-line figures over the stipulated 18-year Operation and Maintenance (O&M) period.

Following table shows the Year wise Order Book of Vishnu Prakash R Punglia Limited

As of July 15, 2023, VPRPL has 51 ongoing projects with total work awarded amounting to Rs 6,183.58 crore, of which Rs 2,384.05 crore worth of work has been executed and the remaining work amounting to Rs 3,799.53 crore constitutes the Order Book.

About 61.54 per cent of the order backlog is from Rajasthan, 16.18 per cent from UP, 9.46 per cent from Manipur, 5.59 per cent from Uttarakhand, 5.54 per cent from Assam and balance from other states. Similarly, about 80.92 per cent of the revenue comes from the top 5 clients. Of the order backlog, about 77.89 per cent is WSPs, 10.05 per cent is railways, 7.93 per cent is roadways, and 4.13 per cent is sewerage and others.

This is a SME IPO listed in September 2023 at Rs 165 with a premium of 67 per cent.

This is a Infrastructure Development Small-Cap company poised for growth with the market capitalization of Rs 2,805 crore, currently trading at Rs 225, and has delivered multibagger returns of 54 per cent in 3 months. The company has delivered good profit growth of 51.6 per cent CAGR over the last 5 years and has a good return on equity (ROE) track record where 3 Years ROE is 32.4 per cent.

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