Dhruv Consultancy Stock Surges 5% After Securing ₹10.87 Cr Order from NHAI
Dhruv Consultancy Stock Surges : Mumbai-based infrastructure consultancy firm Dhruv Consultancy Services Ltd saw its shares jump nearly 5% intraday on Thursday after announcing new contract wins worth ₹10.87 crore from the National Highways Authority of India (NHAI). The stock, which has been trading under ₹100, experienced a surge in buying interest following the announcement.
Stock Performance & Market Reaction
The stock hit an intraday high of ₹92.3, reflecting a 4.9% gain in early trade before retreating to ₹90.85 at 11:00 AM, still 3.25% higher than the previous close of ₹87.99.
Dhruv Consultancy has delivered a 72.5% return in the past three years and a 32% return since its listing in November 2021.
The company’s total market capitalization currently stands at ₹174 crore, making it a microcap stock in the infrastructure consulting sector.
Details of the NHAI Orders
Dhruv Consultancy, in partnership with Kaius Consulting Pvt Ltd, secured two key contracts from NHAI:
- Independent Engineering Consultancy for Economic Corridor (West Bengal)
- Project: Development of a 4-lane corridor from Mayurakshi Bridge to Moregram (NH-116A)
- Contract Value: ₹4.5 crore
- Duration: 24 months
- Supervision Consultancy for NH-46 (Madhya Pradesh)
- Project: Operation & Maintenance (O&M) of Obedullganj-Itarsi Section
- Contract Value: ₹6.37 crore
- Duration: 60 months
These contracts reaffirm Dhruv Consultancy’s expertise in infrastructure planning and supervision and strengthen its order book for the upcoming quarters.
Financial Performance
Despite the positive order inflow, Dhruv Consultancy reported a decline in both revenue and net profit in Q3FY25:
| Financial Metric | Q3FY24 | Q3FY25 | % Change |
|---|---|---|---|
| Revenue from Operations | ₹22.6 Cr | ₹21.99 Cr | -2.7% |
| Net Profit | ₹2.7 Cr | ₹2.15 Cr | -20.7% |
The decline in revenue and profitability suggests short-term challenges, but the new NHAI contracts could provide a boost to earnings in the coming quarters.
Company Overview: Dhruv Consultancy Services Ltd
Dhruv Consultancy is a leading infrastructure consulting firm engaged in:
✔️ Planning, design, and supervision of highways, tunnels, bridges, and ports
✔️ Smart city planning, including residential and sewage treatment projects
✔️ Project management for large-scale infrastructure projects
The company’s expertise in highway infrastructure makes it a key player in India’s rapidly growing infrastructure development sector.
Key Financial Ratios & Stock Valuation
| Metric | Value |
|---|---|
| Market Cap | ₹174 Cr |
| Current Price | ₹90.0 |
| 52-Week High / Low | ₹168 / ₹84 |
| Stock P/E | 32.5 |
| Book Value | ₹52.7 |
| Dividend Yield | 0.56% |
| ROCE | 12.1% |
| ROE | 9.57% |
| Debt to Equity | 0.23 |
| Industry P/E | 26.2 |
| EPS | ₹2.95 |
| Promoter Holding | 49.4% |
| Pledged Percentage | 0.00% |
| RSI | 31.2 (Oversold) |
| Debt | ₹23.0 Cr |
The stock’s Price-to-Earnings (P/E) ratio of 32.5 is slightly above the industry average of 26.2, indicating that the stock may be trading at a premium. However, its low debt-to-equity ratio (0.23) and strong promoter holding (49.4%) suggest financial stability.
Growth Potential & Investment Outlook
- The infrastructure sector in India is booming, with the government investing heavily in roads, highways, and smart cities.
- Dhruv Consultancy’s new orders from NHAI strengthen its project pipeline, which could drive revenue growth in upcoming quarters.
- With the stock trading near its 52-week low, investors might see an opportunity for long-term gains if financial performance improves.
While the company faces short-term profit declines, its low debt, strong project wins, and niche expertise in infrastructure consultancy position it well for future growth.
Final Thoughts
Dhruv Consultancy’s latest contract wins from NHAI have brought positive momentum to its stock price, with a 5% intraday jump reflecting investor confidence. While short-term financials show a dip, the company’s expanding order book and strong promoter backing make it a stock to watch in India’s growing infrastructure sector.
Investors should track upcoming earnings reports and new order wins to gauge long-term growth potential.
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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.