B R Goyal Infra in Focus After Securing ₹38 Crore Order from Liugong India
Introduction
B R Goyal Infra : Infrastructure stocks are back in the spotlight, and B.R. Goyal Infrastructure Ltd (BRG Infra) is no exception. The company recently bagged a significant work order worth ₹37.99 crore from Liugong India Pvt Ltd under the Liugong Project Construction Agreement. This contract underscores BRG Infra’s expanding project portfolio and reinforces its stronghold in India’s infrastructure sector.
The Liugong Project Order
B.R. Goyal Infrastructure has been entrusted with a comprehensive civil works project by Liugong India. The contract encompasses a broad spectrum of construction activities, including:
- Excavation and grading to prepare the site for further development.
- RCC foundation and plinth beam construction for a robust structural base.
- Factory and workshop construction, covering both equipment foundations and auxiliary structures.
- Road and pipeline development within the factory premises.
- Land development for open storage areas.
- Mechanical, Electrical, and Plumbing (MEP) works to ensure seamless operations.
As per the agreement, the project is slated for completion within eight months, emphasizing the company’s commitment to timely execution.
Price Action and Market Performance
On Friday, BRG Infra’s shares reached an intraday high of ₹105.60 per share, reflecting a slight dip from the previous close of ₹106.00 per share. Despite this minor decline, investor sentiment remains positive, fueled by the company’s expanding order book and steady growth trajectory.
B.R. Goyal Infra’s Business Divisions
B.R. Goyal Infrastructure operates across multiple business verticals, ensuring diversification and stability in revenue generation. These include:
- Civil Construction Services (EPC): The core segment involving infrastructure and real estate development.
- Ready-Mix Concrete (RMC) Manufacturing: Operating a high-capacity RMC unit in Indore with an annual production capacity of 1.80 lakh cubic meters.
- Wind Power Generation: A strategic foray into renewable energy with a 1.25 MW wind turbine installed in Jaisalmer, Rajasthan.
- Toll Collection Contracts (TCCs): Revenue generation from managing toll plazas across various states.
- Residential Plotting Projects: Expanding its footprint in real estate development.
Operations and Network Expansion
BRG Infra has successfully established its presence across multiple states, executing infrastructure projects in Madhya Pradesh, Maharashtra, Gujarat, Mizoram, Manipur, and Uttar Pradesh.
The company boasts a well-equipped fleet of over 199 construction vehicles and machinery, ensuring efficient execution of large-scale projects. As of September 30, 2024, BRG Infra employs 402 permanent workers and an additional 212 personnel dedicated to toll collection operations.
Financial Performance Overview
Despite a 9% drop in revenue in Q3 FY25, declining from ₹226 crore to ₹205 crore, the company showcased remarkable profitability growth. Its Profit After Tax (PAT) surged by 50%, climbing from ₹4 crore to ₹6 crore year-on-year.
This demonstrates BRG Infra’s ability to sustain profitability even amidst fluctuating revenues, reflecting strong cost management and operational efficiency.
Key Financial Ratios
To provide a clearer financial snapshot, here are some essential ratios and figures:
| Metric | Value |
|---|---|
| Market Cap | ₹250 Cr. |
| Current Price | ₹105 |
| 52-Week High/Low | ₹153 / ₹98.6 |
| Stock P/E | 11.8 |
| Industry P/E | 21.2 |
| ROCE (Return on Capital Employed) | 21.6% |
| ROE (Return on Equity) | 18.6% |
| Debt to Equity Ratio | 0.53 |
| Total Debt | ₹70.3 Cr. |
| ROIC (Return on Invested Capital) | 14.4% |
| PEG Ratio | 0.53 |
| Piotroski Score | 6.00 |
| Dividend Yield | 0.00% |
| Face Value | ₹10.0 |
What Lies Ahead for BRG Infra?
With a diversified portfolio and a growing pipeline of infrastructure projects, B.R. Goyal Infrastructure is well-positioned for future growth. The recent order from Liugong India not only strengthens its financial standing but also enhances its reputation in the sector.
The company’s focus on timely project execution, cost efficiency, and operational excellence will play a crucial role in sustaining investor confidence and securing further contracts.
Conclusion
The recent ₹38 crore contract win from Liugong India is a testament to BRG Infra’s expertise in infrastructure development. With a strong business model, strategic diversification, and a commitment to quality execution, the company continues to make significant strides in the industry.
For investors eyeing promising infrastructure stocks, B.R. Goyal Infrastructure remains a key player to watch, poised for steady growth in the coming years.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.