Rs 51,753 crore order book: This multibagger civil construction company is selected for EPC contracts by Saudi Arabia’s energy major for MGS‐3 project; know more here!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 485 per share.

Kalpataru Projects International Limited (KPIL), formerly Kalpataru Power Transmission Limited, one of the largest Engineering, Procurement and Construction (EPC) companies listed in India, has announced that it has received Letter of Intent (LoI) from Saudi Arabia’s energy major, Aramco, for carrying out EPC work for three packages of the third expansion phase of the Master Gas System Network (MGS‐3) in Saudi Arabia. The EPC scope covers the laying of over 800 km of lateral gas pipeline. The exact contract value of the three packages will be confirmed upon contract execution.  

The MGS‐3 aims to expand the existing gas network to provide gas supply to various industrial consumers in the region. This expansion of the gas network is expected to enhance the ability to meet the growing energy demand in Saudi Arabia and replace liquid fuel burning, contributing to Saudi Arabia’s drive towards a diverse energy mix. KPIL is delighted to be collaborating with Aramco towards supporting energy security and reliability.  

With roughly two decades of experience in cross‐country pipelines, processing facilities, refineries and fertilizer plants, KPIL has successfully commissioned over 10,000 km of oil and gas and water pipelines and embraces best global practices in areas like project management, quality and health safety environment (HSE).    

Manish Mohnot, MD & CEO of Kalpataru Projects International Limited, said, “We are delighted and truly proud to be entrusted by Aramco to undertake EPC work for the MGS‐3 project. This is a sizable EPC order, representing a significant milestone and reaffirmation of global acknowledgement of our capabilities. KPIL is focused on strengthening its presence in the oil and gas market in the Middle East region over the past few years. This order serves as a resounding testament to our commitment to strengthening our presence across the value chain in the global oil and gas EPC business. Moreover, this large order will strengthen our order book profile and put our oil and gas business on a robust growth trajectory going forward. We are confident that once the project is completed, it will help support the energy transition in Saudi Arabia.”  

Order Book: The company’s order book stands at Rs 51,753 crore (USD 6.2 billion) as of December 31, 2023, an increase of 25 per cent YoY with 61 per cent with domestic orders and 39 per cent international orders. Year to date FY24, order inflow was worth Rs 18,065 crore with 68 per cent domestic orders and 32 per cent international orders.

Today, shares of KPIL surged 0.68 per cent to Rs 1,005.65 per share from its previous closing of Rs 998.90 with an intraday high of Rs 1,043.25 and an intraday low of Rs 995.75. The stock also made a fresh 52-week high of Rs 1,043.45 while its 52-week low is Rs 485. The company has a market cap of over Rs 16,000 crore.

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 485 per share. Investors should keep an eye on this Mid-Cap stock.

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