Infra Stock Drops Nearly 50 Per Cent in Just 62 Days, But Bags New Railways Order Worth Rs 269.68 Crore

Infra development company secures Fresh Orders, As of December 2024, Order Book stood at Rs 5,125 Crore, A Mix of Water Supply and Railway Projects

The infrastructure sector has been buzzing with activity, and one company, Vishnu Prakash R Punglia Limited, has been securing multiple orders. Despite a nearly 50 per cent correction in just 62 days, the company remains a strong player in the infrastructure space. In a recent exchange filing, the company announced securing a significant order worth Rs 269.68 crore from the North Western Railway. This comes as a major boost to its already robust order book, which stood at Rs 5,125 crore by December 2024, over 2.5 times its current market capitalization.

According to the official filing, the company, through its joint venture M/S VPRPL-SBEL JV, has been awarded a contract for extensive railway infrastructure development work. The scope of the project includes crucial tasks such as earthwork, bridge construction, road underpasses, foot overbridges, station building construction, and track laying for the Ajmer-Chanderiya doubling project of the North Western Railway.

The contract is valued at Rs 269.68 crore and is expected to be executed over the next couple of years. This project marks yet another milestone in the company’s growing presence in the railway infrastructure sector.

As of December 2024, the company’s total order book stood at Rs 5,125 crore. During the same period, it secured additional new orders worth Rs 1,333 crore, which will be implemented over the next 24-25 months. Of these, water supply projects accounted for Rs 343 crore, while railway projects contributed Rs 864 crore.

Earlier in February 2025, the company also received a Letter of Award from Bharat Heavy Electricals Limited (BHEL) for a tender valued at Rs 247.55 crore. This further strengthens its position in the infrastructure sector, making it a key player in the ongoing development of the country's transport and utility networks.

Despite the strong order book, the company’s financial performance in Q3 FY25 showed some weaknesses. It reported a revenue of Rs 241 crore, marking a slight decline of 0.5 per cent year-on-year. EBITDA for the quarter stood at Rs 28 crore, down 19 per cent year-on-year, with an EBITDA margin of 11.42 per cent.

The company’s net profit for the quarter was Rs 4 crore, a sharp drop of 78 per cent compared to the same period last year, resulting in a PAT margin of just 1.62 per cent. Despite the latest order, its stock has faced significant pressure. As of March 3, 2025, shares of Vishnu Prakash R Punglia Limited were trading at Rs 157, down 1.88 per cent for the day. The stock has seen a steep decline, falling by 47.26 per cent on a year-to-date basis, raising concerns among investors. 

Founded in 1986, Vishnu Prakash R Punglia Limited is one of India's fastest-growing infrastructure development companies. It specializes in designing and constructing large-scale infrastructure projects for both the Central and State Governments and private entities. With a strong track record and a growing portfolio of projects, the company remains a key player in India’s expanding infrastructure landscape.

Disclaimer: This article is purely for informational purposes and should not be considered as investment advice.