SRM Contractors stock jumps 5% after order win worth Rs 106 from NHAI

Shares of SRM Contractors gained up to 4.80 per cent at Rs 390.45 per share on the BSE in Monday’s intraday trade. SRM Contractors share price surged after the company secured an order worth Rs  106 crore from National Highway Authority of India (NHAI). 

 

The order entails long-term rectification of blackspots on the Jetpur-Somnath section of NH 15, including the construction of a vehicular underpass at Sornath Junction, a flyover at Keshod Junction, a Flyover and light vehicular underpass at Gadu Location, and a Service Road at Santipara Patiya.

 

In an exchange filing on Friday, the company stated that the order will be executed within 18 months. 

 

In the second quarter of financial year 2024-25 (Q2FY25), SRM Contractors reported a net sales at Rs 95.25 crore, reflecting an 11.7 per cent decline from Rs 107.87 crore in September 2023. Quarterly net profit increased by 8 per cent to Rs 8.90 crore compared to Rs 8.24 crore in the same period last year. 

 

Ebitda for September 2024 rose by 2.03 per cent, reaching Rs 16.07 crore, up from Rs 15.75 crore in September 2023.

 

Meanwhile, on the equities side, SRM Contractors’s stock has outperformed the market, as in the last six months it has gained 112 per cent . In comparison, the BSE Sensex has risen 2 per cent in the last six months.

 

The company has a total market capitalisation of Rs 878.53 crore. At 10:07 AM; the shares of the company were up 2.78 per cent at Rs 382.90 a piece. By comparison, the BSE Sensex was trading 0.83 per cent lower at 78,692.28 level. 

 

SRM Contractors is an Engineering Construction and Development (ECD) company specializing in road construction, including bridges, tunnels, slope stabilization, and other civil infrastructure projects. Operating primarily in the Union Territories of Jammu & Kashmir and Ladakh, the company executes projects as an EPC contractor and also undertakes sub-contracting assignments for infrastructure construction.