Under Rs 110: Multibagger civil construction stock to keep under the radar with a strong book of Rs 1,200 crore!

The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 460 per cent in 3 years.

Brahmaputra Infrastructure Limited (BIL) along with its joint venture partners has a strong order book of approximately Rs 1200 crore as of June 30, 2024. They are actively pursuing new contracts from the government and private sectors. Good progress is being made on ongoing projects and BIL is confident of meeting all targets. Financial results for the first quarter of the current fiscal year will be released soon.

BIL is working on finalizing bills with clients to recover pending bank guarantees. These guarantees will be used for new projects, resolving arbitration claims, and potentially repaying debt. The company has successfully restructured its credit facilities and is meeting all its financial obligations.

BIL holds arbitration awards totalling Rs. 71.51 crore, with some amount already received. They are working on securing bank guarantees to recover the remaining balance. Additionally, BIL has ongoing arbitration and other claims worth approximately Rs. 250 crore, with decisions expected within the next 18 to 24 months. Recovered funds from these awards will be used to improve working capital and potentially repay debt.

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Earlier, Brahmaputra Infrastructure Ltd secured two major highway construction projects in Northeast India. The first involves rehabilitating and upgrading an 11.21 km stretch of road from Kailashahar to Kurti Bridge on NH-208A in Tripura for Rs 59.84 crore. This project, awarded by the National Highway & Infrastructure Development Corporation of India (NHIDCL), will follow an EPC (Engineering, Procurement & Construction) model, meaning Brahmaputra will be responsible for design, material procurement, and construction, ultimately transforming the existing road into a two-lane highway with paved shoulders. Additionally, Brahmaputra was previously awarded a separate contract worth Rs 50.80 crore by the National Highway Authority of India (NHAI) to construct a four-lane divided carriageway with paved shoulders in Assam. This project encompasses two sections: one on NH-36 (km 5.50 to km 35.86) and another on NH-54 (km 0.00 to km 22.00), including a 2.11 km Doboka Bypass. Similar to the NHIDCL project, this NHAI contract also utilizes the EPC mode, solidifying Brahmaputra's role in designing, procuring materials, and constructing the entire highway project.

Founded in 1998, Brahmaputra Infrastructure Ltd. (BIL) is a versatile construction company with a strong foothold in diverse infrastructure sectors. BIL thrives in the EPC & Real Estate Development Business, undertaking projects ranging from the construction of bridges, flyovers, and highways to airports, buildings, tunnels, and even mining projects. They have successfully developed and managed the largest shopping mall in Northeast India, showcasing their expertise in large-scale infrastructure projects.

The company has a market cap of over Rs 280 crore and has an order book of Rs 1,200 crore along with its Joint operations as of June 30, 2024. The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 460 per cent in 3 years. Investors should keep an eye on this micro-cap civil construction stock.

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