BR Goyal Infrastructure Jumps 4% After Securing ₹31 Crore Order from Bhavnagar Municipal Corporation
BR Goyal Infrastructure Ltd, a key player in India’s infrastructure sector, saw its stock surge up to 4% following the announcement of a significant work order worth ₹30.71 crore from Bhavnagar Municipal Corporation. This new contract, aimed at enhancing road infrastructure in Bhavnagar, underscores the company’s strong project execution capabilities and growing presence in the industry.
Stock Price Movement
Despite the initial surge, the stock of B.R. Goyal Infrastructure Ltd was trading at ₹105.15 per share, marking a slight decline of 1.87% from its previous closing price of ₹107.15. The company currently holds a market capitalization of ₹250.52 crore, reflecting its steady standing in the infrastructure sector.
Project Details & Impact
According to an exchange filing, the company has secured an order from Bhavnagar Municipal Corporation for the construction of a White Topping Road and other infrastructure enhancements between Mahila College Circle and Bhavnagar Airport. This ₹30.71 crore project is expected to bolster the company’s revenue streams while reinforcing its reputation as a reliable infrastructure developer.
This development aligns with India’s broader infrastructure growth plan, where urban centers are undergoing significant modernization to improve connectivity and sustainability. White Topping Roads, known for their durability and low maintenance, have become a preferred choice for urban road networks, further strengthening the company’s portfolio.
Financial Performance & Growth Prospects
B.R. Goyal Infrastructure has exhibited mixed financial performance over the past year:
- Revenue Decline: The company’s revenue dropped 9% from ₹226 crore in H1FY23 to ₹205 crore in H1FY24.
- Profit Growth: Despite the revenue dip, net profit surged by 50%, rising from ₹4 crore to ₹6 crore during the same period.
The company’s revenue distribution in FY24 highlights its diverse operational segments:
- EPC Services: 68.18%
- Toll Collection: 26.53%
- Sale of Products: 3.27%
- Plot Sales: 0.91%
- Business Auxiliary Services: 0.67%
- Machine Hire & Transportation: 0.36%
- Wind Power Generation: 0.09%
The increase in profit margins despite a fall in revenue suggests improved operational efficiency and cost control measures implemented by the company.
Strong Order Book Strengthens Future Prospects
As of September 30, 2024, the company is engaged in 26 projects across roads, bridges, buildings, and toll collection, with an unexecuted order book worth ₹873.39 crore. This includes:
- Roads & Highways: ₹667 crore (76.43%)
- Buildings: ₹173 crore (19.87%)
- Toll Projects: ₹32 crore (3.7%)
With a clear focus on infrastructure development, particularly in roads and highways, B.R. Goyal Infrastructure is well-positioned for sustained growth in the coming years.
Financial Ratios & Market Positioning
| Metric | Value |
|---|---|
| Market Cap | ₹257 Cr |
| Current Price | ₹108 |
| 52-Week High/Low | ₹153 / ₹95 |
| Stock P/E | 12.1 |
| Book Value | ₹ – |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 21.6% |
| ROE (Return on Equity) | 18.6% |
| Face Value | ₹10.0 |
| Promoter Holding | 73.0% |
| Price to Book Value | – |
| Debt to Equity | 0.53 |
| Pledged Percentage | 0.00% |
| Industry P/E | 17.8 |
| RSI (Relative Strength Index) | 44.2 |
| EPS (Earnings Per Share) | ₹25.2 |
| No. of Equity Shares | 2.38 Cr |
| PEG Ratio | 0.54 |
| 200-Day Moving Average (DMA 200) | ₹135 |
| Free Cash Flow (3-Year) | ₹43.1 Cr |
| Free Cash Flow (5-Year) | ₹45.7 Cr |
| Free Cash Flow (Latest) | ₹-0.13 Cr |
| Total Debt | ₹70.3 Cr |
| Return on Assets (ROA) | 9.86% |
These figures highlight the company’s solid financial health, with a robust return on capital employed (ROCE) of 21.6% and an ROE of 18.6%. The company’s strong promoter holding of 73% also indicates confidence in its long-term growth potential.
About B.R. Goyal Infrastructure Ltd
B.R. Goyal Infrastructure Ltd is a well-established construction company specializing in roads, highways, bridges, and building projects across India. With operations spanning Madhya Pradesh, Maharashtra, Gujarat, Haryana, Uttar Pradesh, Mizoram, and Manipur, the company has played a crucial role in India’s infrastructure expansion.
Future Outlook
With a strong order book, strategic focus on road infrastructure, and consistent profitability growth, B.R. Goyal Infrastructure is well-positioned to capitalize on India’s increasing investment in public infrastructure. The newly secured ₹30.71 crore order from Bhavnagar Municipal Corporation is expected to further solidify its market position.
Investors and stakeholders should keep an eye on how the company manages its debt, maintains profitability, and executes upcoming projects. With positive growth indicators, the stock remains an attractive proposition for long-term investors eyeing the infrastructure sector.
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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.