High ROE & High ROCE stock in green as construction company receives order worth Rs 107.49 crore from Maharashtra State Infrastructure Development Corporation Ltd
The shares of the company have an ROE of 21 per cent and an ROCE of 27 per cent.
Markolines Pavement Technologies Limited, formerly known as Markolines Traffic Controls Limited, has announced a significant contract win. In a joint venture with OJSC Euro-Asian Construction Corporation, the company has secured a Letter of Acceptance (LOA) for the improvement and widening of State Highway SH-158. The 27-kilometer stretch of the highway will be upgraded at a total cost of Rs 107.49 crore, funded by the Maharashtra State Infrastructure Development Corporation Limited, a government undertaking. The company has confirmed that no directors, promoters, promoter groups, or group companies have any financial interest in the entities involved in the project. Additionally, the contract is entirely domestic, with all work orders and contracts originating from domestic entities, ensuring that the award of the contract does not fall under the category of related party transactions.
On Thursday, shares of Markolines Pavement Technologies Ltd zoomed 7.48 per cent to an intraday high of Rs 231.30 per share from its previous closing of Rs 215. At the closing bell, shares of the company were trading at Rs 220.55 per share, up 2.58 per cent with a spurt in volume by more than 3.50 times on BSE.
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Markolines Pavement Technologies Ltd (MPTL), a company established in 2002, specializes in providing comprehensive highway operations and maintenance services. With a focus on road marking, MPTL has successfully managed over 20,000 lane kilometres of National Highways in India. The company offers a wide range of services, including preventive maintenance, major maintenance and repairs, specialized maintenance techniques like micro surfacing and cold in-place recycling, and specialized construction projects such as soil stabilization and tunnelling. MPTL has a strong client base, collaborating with prominent companies like Cube Highways, MMRDA, Larson & Toubro, Safeway Concessions, Ashoka, Actis, Highway Concessions, Tata Realty, Gammon, EIL and more.
The company has a market cap of over Rs 400 crore and has delivered good profit growth of 46 per cent CAGR over the last 5 years. The shares of the company have an ROE of 21 per cent and an ROCE of 27 per cent. The stock is up by 86 per cent from its 52-week low of Rs 124 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.