Under Rs 150: Defence Construction Stock Hits Upper Circuit After Securing Order Worth Rs 186.68 Crore from Maharashtra Maritime Board!
The company’s shares have delivered an impressive return of over 175 per cent in the past 2 years.
Incorporated in 2005, RKEC Projects Ltd is a Small-Cap company that operates in the civil and defence construction sector. The company's stock has rallied 5 per cent in today's trading session and hit the upper circuit. The reason for this price surge could be the recent work order received by the company.
On Saturday, the company has been awarded a work order for the construction of Passenger Jetty and Terminal Facilities at Radio Jetty near Gateway of India, Mumbai, on an EPC (Engineering, Procurement, and Construction) basis. The contract, floated by the Maharashtra Maritime Board, is valued at Rs 186.68 crore (Rupees One Hundred Eighty-Six Crore Sixty-Seven Lakh Seventy-Seven Thousand Seven Hundred and Six), excluding GST.
Currently, the company’s shares are at around Rs 132.39 and the current market capitalization stands at Rs 317.61 crore. Additionally, the shares have delivered an impressive return of over 175 per cent in the past 2 years.
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As per the Quarterly Results, in the Q1 FY25, RKEC Projects Ltd recorded a revenue of Rs 84.67 crore compared to Rs 38.47 crore. It reported an operating profit of Rs 13.43 crore. The net profit stood at Rs 5.31 crore. Looking at the annual performance, the company generated a revenue of Rs 341 crore in FY24 compared to Rs 300 crore. The operating profit for FY24 was Rs 51 crore with a net profit of Rs 20 crore compared to a profit of Rs 12 crore in FY23.
RKEC is a construction company specializing in civil and defence construction, including the development of buildings, highways, marine works, and bridges. The company holds a "Super Special Class" contractor designation with the Ministry of Defence, qualifying it to design and execute onshore marine works and infrastructure projects. RKEC is also registered as a "Special Class Civil" contractor with the Roads & Bridges Government of the Government of Andhra Pradesh and as a "Super Class" civil contractor with the Public Works Department of the Government of Odisha.
Disclaimer: The article is for informational purposes only and not investment advice.