Infra stock jumps 4% after receiving ₹31 Cr order from Bhavnagar Municipal Corp

The shares of a prominent infrastructure company gained up to 4 percent after the company secured a significant work order from Bhavnagar Municipal Corporation for Rs 30.71 crore.

Price movement

With a market capitalization of Rs 250.52 crore, the shares of B.R.Goyal Infrastructure Ltd were trading at Rs 105.15 per share, decreasing around 1.87 percent as compared to the previous closing price of Rs 107.15 apiece.

Reason for Rise

According to the exchange filing, B.R.Goyal Infrastructure Ltd secured a significant work order from Bhavnagar Municipal Corporation for the construction of White Topping Road, and other works from Mahila College Circle to Bhavnagar Airport. This order is valued at Rs 30.71 crore.

Financial performance

Looking into the company’s financial condition, revenue fell by 9 percent from Rs 226 crore in H1FY23 to Rs 205 crore in H1FY24. During the same time frame, net profits magnified by 50 percent from Rs 4 crore to Rs 6 crore.

In FY24, the company’s revenue was primarily from EPC Services (68.18 percent) and Toll Collection (26.53 percent), with smaller contributions from Sale of Products (3.27 percent), Plot Sales (0.91 percent), Business Auxiliary Services (0.67 percent), Machine Hire & Transportation (0.36 percent), and Wind Power Generation (0.09 percent).

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Order Book

As of September 30, 2024, the company has 26 ongoing projects in roads, bridges, buildings, and TCC sectors, covering construction, widening, strengthening, and rehabilitation of highways and bridges. Its unexecuted order book stands at Rs 87,339.70 lakh, including 24 EPC (road & building) projects and two toll projects.

The company’s order book is dominated by Roads & Highways projects at Rs 667 crore (76.43 percent), followed by Building projects at Rs 173 crore (19.87 percent) and Toll projects at Rs 32 crore (3.7 percent), reflecting a strong focus on infrastructure development.

Ratio analysis

The company’s critical ratios show that the return on equity increased from 15.61 percent in FY22-23 to 17.42 percent in FY23-24, while the return on capital employed increased from 19 percent to 20 percent. The net profit margin (NPM) for fiscal year 23-24 is 3.77 percent.

About Company

B.R. Goyal Infrastructure is involved in the construction and development of infrastructure projects, including roads, highways, bridges, and buildings. The company operates in several states, including Madhya Pradesh, Maharashtra, Gujarat, Haryana, Uttar Pradesh, Mizoram, and Manipur.

Written by Abhishek Singh

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