Penny stock jumps 5% after receiving ₹29 Cr order for transmission project in Gurugram

Synopsis:
K2 InfraGen received a ₹28.50 crore order for a GIS substation project in Gurugram, boosting its portfolio and supporting future growth within 15 months.

This Penny stock, engaged in engineering, procurement, construction, and turnkey services for infrastructure projects, including roads, railways, power transmission, renewable energy, and water supply, hit a 5 percent upper circuit after receiving an order worth Rs. 29 crore for a transmission project in Gurugram.

With a market capitalization of Rs. 82.65 crores, the shares of K2 Infragen Limited hit a 5 percent upper circuit of Rs. 65.50 per share on Thursday, up from its previous closing price of Rs. 62.40 per share.

K2 InfraGen Limited has received a new work order worth Rs. 28.50 crores for a project in Manesar, Gurugram. The order includes the design, manufacturing, supply, erection, testing, and commissioning of a 66/11 KV GIS substation with SAS, along with a 66 KV underground transmission line. 

The project is expected to be completed within 15 months. This order was given by a domestic entity and adds to the company’s project portfolio and is expected to support its overall growth.

K2 Infragen Limited (K2IL) was established in 2015 and is headquartered in Gurugram, Haryana. The company is an engineering and core infrastructure company based in India, and it is the flagship company of the K2 Group. 

The company provides end-to-end engineering, procurement, construction, and turnkey services. Its business domains include roads, railways, bridges, water supply, power transmission and distribution, renewable energy (including solar projects), and other civil infrastructure projects. 

The company operates in the EPC (Engineering, Procurement, Construction) space, focusing on power and infrastructure projects, and is known as one of the fastest-growing companies in this sector in India. Its workforce has decades of experience handling complex projects, including those in challenging geographies. 

K2 Infragen Limited is also involved in setting up renewable energy projects, such as a 2 MW power plant in Haryana. Coming into financial highlights, K2 Infragen Limited’s revenue has increased from Rs. 49 crore in H2 FY24 to Rs. 95 crore in H2 FY25, which has grown by 93.88 percent. The net profit has also grown by 16.67 percent from Rs. 6 crore in H2 FY24 to Rs. 7 crore in H2 FY25.

K2 Infragen Limited’s revenue has grown at a CAGR of 57.85 percent over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 17.9 percent and 19.2 percent, respectively. K2 Infragen Limited has an earnings per share (EPS) of Rs. 9.23, and its debt-to-equity ratio is 0.74x.

Written By – Nikhil Naik

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