Upper Circuit Alert: Infrastructure Company Bags New Order Worth Rs 414.16 Crore From Government of India
The stock is up by 68.33 per cent from its 52-week low of Rs 102 per share.
On Thursday, shares of VVIP Infratech Ltd hit a 5 per cent upper circuit to Rs 171.70 per share from its previous closing of Rs 163.55 per share. The stock’s 52-week high is Rs 314.40 per share and its 52-week low is Rs 102 per share.
VVIP Infratech Limited has secured significant infrastructure contracts, totalling Rs 414 crore, from various government departments. This includes a Letter of Acceptance (LOA) for a sewerage network project in Rishikesh, Uttarakhand, valued at Rs. 175.80 Crores. Funded by the German Financial Cooperation, this project aims to improve sanitation in the Ganga Basin. The scope encompasses the supply, laying, jointing, construction, testing, and commissioning of sewerage networks and house connections within Zone PSZ-6, with a construction period of 730 days.
Additionally, VVIP Infratech has received Letters of Intent (LOI) from Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) for electric distribution works in Uttar Pradesh, under the Government of India's Revamped Distribution Sector Scheme (RDSS). These LOIs cover four clusters: Bulandshahr, Saharanpur, Moradabad, and Meerut, collectively amounting to Rs 238.36 crore. The projects focus is on constructing new 11 kV feeders and associated LT lines to separate agricultural and rural loads, enhancing power distribution efficiency. Each cluster project has a construction period of 547 days, demonstrating a substantial expansion of VVIP Infratech's involvement in the state's electrical infrastructure.
About the Company
VVIP Infratech Limited, an Indian infrastructure company with over two decades of experience, operates as a Class "A" Civil and Electrical contractor, specializing in diverse projects including sewer and water treatment plants, sector development, electrical distribution, and Jal Jeevan Mission initiatives. Emphasizing quality, timely delivery, and competitive pricing, they employ experienced engineers and technicians, notably constructing large-scale Sewer Treatment Plants (STPs) utilizing Sequential Batch Reactor (SBR) technology. With a focus on projects in Uttar Pradesh, Uttarakhand, and other northern Indian regions, VVIP Infratech is a rapidly expanding company poised to significantly contribute to India's infrastructure development, particularly in the critical area of sewage treatment.
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During FY 2024, the company achieved the consolidated turnover of Rs 285.82 crore with EBIDTA of Rs 31.45 crore and PAT of Rs 20.71 crore. The company has a market cap of Rs 429 crore and including the above orders, the company’s order book stands at approx. Rs 1,000 crore. The stock is up by 68.33 per cent from its 52-week low of Rs 102 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.