Capacite Infra surges 21% in three days on winning Rs 224 cr Raymond order

Last month, the company had received order worth Rs 478.08 crore from Godrej Residency for construction of residential towers in Mumbai.

Shares of Capacite Infraprojects (CIL) moved higher by 11 per cent to Rs 155.30 on the BSE in Wednesday’s intra-day trade on the back of heavy volumes.

In past three trading sessions, , the stock of civil construction company has rallied 21 per cent after winning order worth Rs 224 crore from Raymond (realty division) for residential project- TenX Era at Thane.

At 12:26 PM; CIL quoted 10.5 per cent higher at Rs 154.70, as compared to 0.11 per cent rise in the S&P BSE Sensex. The average trading volumes at on the counter jumped five-fold. A combined 1.3 million equity shares representing 1.9 per cent of total equity of the company had changed hands on the NSE and BSE.
 

The management said the company remains confident of delivering the project within the stipulated timelines and to client satisfaction.

Last month, CIL had received order worth Rs 478.08 crore from Godrej Residency Private Limited (Godrej Group) for construction of residential towers at Mahalaxmi, Mumbai.

CIL provides engineering, procurement and construction/turnkey solutions for housing, high rises, super high rises, speciality buildings and urban infrastructure. The company recently forayed into development of projects for the public sector.

Meanwhile, between September 13, 2022 and March 28, 2023, the stock had tanked 42 per cent after the rating agency India Ratings and Research (Ind-Ra) downgraded CIL’s Long-Term Issuer Rating to 'IND BB+’ from ‘IND BBB+' and placed it on Rating Watch with Negative Implications.

The downgrade reflects CIL’s inability to tie up enhanced working capital limits, continued blockage of working capital and a delay in recovering its pending receivables, resulting in a further stretch in its working capital, Ind-Ra said in rating rationale on February 22, 2023.

The company targets to maintain its order book from the public sector at the similar levels (70 per cent) over the near- to medium-term. However, the order book is highly concentrated in terms of geography as most of the projects to be executed are in the Mumbai Metropolitan Region. Also, the top 10 projects of the company comprised around 84 per cent of the total order book. City and Industrial Development Corporation of Maharashtra contributed around 50 per cent to the overall order book.

Ind-Ra expects the order book to remain strong over the medium term, considering the government’s focus on infrastructure development and the company’s ability to execute projects in a timely manner.