Microcap stock in focus after receiving orders from Adani Total Gas, BPCL and MNGL

Synopsis: Desco Infratech has secured Rs. 5.37 crore worth of domestic orders from Adani Total Gas, BPCL, and MNGL for PNG pipeline, O&M, and support services, bringing the stock into action.

This is an infrastructure company focused on engineering, planning, & construction, particularly in city gas distribution, renewable energy, water, and power sectors is now in focus after securing orders from Adani Total Gas, BPCL, & MNGL

With a market capitalisation of Rs. 142 cr, the shares of Desco Infratech Ltd are currently trading at Rs. 185 per share, down by 2.5% in today’s market session, making a low of Rs. 185, down from its previous close of Rs. 190 per share. 

About the order

Desco Infratech Limited has that it has received purchase and service orders aggregating to Rs. 5.37 crore. The orders have been awarded by Adani Total Gas Limited (ATGL), Bharat Petroleum Corporation Limited (BPCL), and Maharashtra Natural Gas Limited (MNGL).

The scope of work includes PE PNG pipeline works at Faridabad and Palwal, operations and maintenance services for BPCL’s PNG network in Hanumangarh district of Rajasthan, and support services for PNG O&M in Wakad and Talegaon areas for MNGL’s CGD network in Pune. All contracts are domestic in nature and will be executed as per the respective contractual terms.

It has a robust order book of over Rs. 345 crore, primarily driven by EPC projects contributing ~94.5%, with additional revenues from O&M and Power & Transmission segments. 

The execution timeline ranges from 15 to 24 months, ensuring strong revenue visibility. With tenders bid worth Rs. 413.67 crore and an expected conversion ratio of 30 to 40%, the company maintains a healthy growth outlook supported by a diversified and executable project pipeline.

About the company 

Desco Infratech is a leading infrastructure development company in India, delivering innovative and reliable solutions across the City Gas Distribution, Renewable Energy, Water, and Power sectors. With strong expertise in MDPE and steel pipeline laying, water infrastructure development, and power distribution networks, the company is driven by a team of skilled engineers and innovators committed to quality, safety, and sustainable growth.

It demonstrates strong financial performance with a ROCE of 31.2% and ROE of 25.6%, reflecting efficient capital utilization and healthy profitability. The company maintains a low debt-to-equity ratio of 0.10, indicating a conservative and stable capital structure. With a PEG ratio of 0.10 and a solid 3-year average ROE of 28.2%, Desco Infratech has a consistent track record of generating value for shareholders.

Sales of the company increased from Rs. 37 cr in H2FY25 to Rs. 42 cr in H1FY26. Operating profit marginally rose from Rs. 8 to Rs. 9 cr. Net profit stands flat at Rs. 6 cr.

The post Microcap stock in focus after receiving orders from Adani Total Gas, BPCL and MNGL appeared first on Trade Brains.