Rs 9,300 crore order book: This civil construction company bags new orders worth Rs 131.19 crore from PowerGrid Energy Services Limited

The shares of the company have a PE of 11x and an ROE of 29 per cent.

Ramky Infrastructure Limited has been awarded two contracts by PowerGrid Energy Services Limited, a subsidiary of Power Grid Corporation of India Limited. These contracts are related to a project aimed at reducing electricity losses in the Leh district of Ladakh, India.

The first contract, named "Supply of Plant Contract", involves supplying equipment for the project. The second contract, named "Supply of Installation Services Contract", involves providing the labour and expertise to install the equipment. Both contracts are part of the Results-linked, Distribution Sector Scheme (RDSS) implemented by the Ladakh Power Development Department (LPDD). The total value of the contracts is approximately Rs 131.19 crore (excluding GST), with Rs 107.39 crore for the plant supply and Rs 23.80 crore for the installation services. The project has a deadline of 30 months for completion.

It's important to note that these contracts are domestic and weren't awarded to any entities with connections to Ramky Infrastructure's promoters or group companies. The contracts won't be considered related party transactions either.

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About the Company

Ramky Infrastructure Ltd., a leading company within the Ramky Group, tackles a wide range of construction, infrastructure development, and management projects. Their core business lies in Engineering, Procurement, and Construction (EPC) services, focusing on sectors like water and wastewater management, irrigation systems, industrial construction, transportation networks, various building types, and power transmission and distribution. Additionally, Ramky Infrastructure ventures into property development, primarily through Public-Private Partnership (PPP) projects with the government. These development ventures, typically awarded through competitive bidding, encompass areas like industrial parks, transportation infrastructure, integrated townships, and the energy sector. The company has a market cap of over Rs 4,000 crore whereas the company’s order book stands at Rs 9,300 crore as of March 31, 2024 (Capex is 60 per cent and Opex is 40 per cent).

Share Performance

Today, shares of Ramky Infrastructure Ltd gained 7.41 per cent to an intraday high of Rs 604.85 per share from its previous closing of Rs 563.10 per share. The stock is up by 70 per cent from its 52-week low of Rs 357.10 per share. The shares of the company have a PE of 11x and an ROE of 29 per cent. Investors should keep an eye on this Small-Cap stock.

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