Infra Stock Under ₹60 Surges 11% After Securing ₹260 Crore Order from BRO
IInfra Stock : n a significant development for investors, shares of Niraj Cement Structurals Limited, an infrastructure services company, soared nearly 11.6% on Thursday. The surge came after the company announced securing a massive work order worth ₹268.92 crores from the Border Roads Organization (BRO).
Stock Performance & Market Reaction
During the trading session, Niraj Cement’s stock saw a sharp upward movement, touching an intraday high of ₹51 before settling at ₹49 on the Bombay Stock Exchange (BSE). This marks a gain of 6.3% compared to its previous closing price of ₹46.1.
Over the past year, the stock has delivered an impressive 28% return, demonstrating strong investor confidence. However, in the last month, it has recorded a minor 2% decline. Despite this short-term dip, the recent contract win has renewed optimism among traders and investors alike.
The Big News: ₹268.92 Crore Project Win
According to a recent regulatory filing, Niraj Cement Structurals Limited announced that its Niraj-Satish Joint Venture (JV) has secured a major work order for constructing a 4-lane Greenfield bypass (Pattan Bypass) with paved shoulders. The project is located along the Srinagar-Baramulla-Uri (NH-01) route in Jammu & Kashmir.
Project Details:
- Awarding Authority: Border Roads Organization (BRO) under Project Beacon
- Project Scope: Construction from Existing Ch. Km 24.320 to Km 33.760 (Design Ch. Km 24.400 to Km 35.300)
- Total Length: 10.9 km
- Contract Value: ₹268.92 crore (excluding GST)
- Execution Mode: EPC (Engineering, Procurement, and Construction)
- Completion Timeline: 24 months
This order is expected to boost the company’s revenue stream, strengthen its order book, and enhance its credibility in infrastructure development.
Financial Performance: Mixed Signals with a Strong Profit Growth
Despite winning a massive contract, Niraj Cement has reported a slight decline in revenue in its latest quarterly results.
| Financial Metric | Q3 FY24 | Q3 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹126.6 Cr | ₹119.7 Cr | -5.5% |
| Net Profit | ₹1.3 Cr | ₹2.2 Cr | +68% |
While the revenue dipped by 5.5% year-on-year, the company’s net profit jumped by 68%, indicating improved cost management and operational efficiency.
Key Financial Ratios of Niraj Cement Structurals Limited
| Metric | Value |
|---|---|
| Market Cap | ₹251 Cr |
| Current Price | ₹49.2 |
| 52-Week High/Low | ₹75.0 / ₹36.2 |
| Stock P/E | 16.2 |
| Book Value | ₹36.5 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 12.4% |
| ROE (Return on Equity) | 9.97% |
| Face Value | ₹10.0 |
| Promoter Holding | 24.1% |
| Price to Book Value | 1.35 |
| Debt to Equity | 0.00 |
| Pledged Percentage | 0.00% |
| Industry PE | 18.1 |
| Graham Number | ₹54.2 |
| Intrinsic Value | ₹90.0 |
| RSI (Relative Strength Index) | 44.8 |
| EPS (Earnings Per Share) | ₹3.58 |
| Number of Equity Shares | 5.10 Cr |
| PEG Ratio | 0.21 |
| 200 DMA (Daily Moving Average) | ₹55.3 |
| Free Cash Flow (Last 3 Years) | ₹32.1 Cr |
| Free Cash Flow (Last 5 Years) | ₹8.87 Cr |
| Total Debt | ₹0.19 Cr |
| Return on Assets | 6.09% |
| Price to Sales Ratio | 0.53 |
Company Overview: Niraj Cement Structurals Ltd
Niraj Cement is a well-established player in the infrastructure and construction industry. The company specializes in developing highways, expressways, turnkey projects, roads, bridges, tunnels, and allied works.
With a strong track record in executing government contracts, the recent BRO order strengthens its position in the Indian road infrastructure sector.
Why This Order Matters for Investors?
- Strengthens Order Book – The ₹268.92 Cr contract adds significant revenue visibility.
- Improves Growth Prospects – Government-backed infrastructure projects provide long-term stability.
- EPC Mode Benefits – Ensures cost control and higher margins compared to traditional contracts.
- Boosts Investor Confidence – The stock’s rally indicates strong market optimism.
- Competitive Edge – Winning a major BRO contract enhances the company’s credibility in the sector.
Q&A Section: Key Takeaways at a Glance
Q1: Why did Niraj Cement Structurals Limited’s stock rise by 11%?
A: The stock surged due to the announcement of a ₹268.92 crore project awarded by the Border Roads Organization (BRO) for the construction of a Greenfield bypass in Jammu & Kashmir.
Q2: What is the value of the new contract awarded to the company?
A: The total contract value is ₹268.92 crore (excluding GST), and it will be executed in EPC mode within 24 months.
Q3: How has Niraj Cement performed financially?
A: The company’s revenue declined by 5.5% YoY, but net profit surged by 68%, indicating better cost efficiency.
Q4: What are some key financial metrics of Niraj Cement?
A: It has a market cap of ₹251 Cr, ROCE of 12.4%, ROE of 9.97%, and zero debt, making it a fundamentally strong stock.
Q5: What does the latest order mean for Niraj Cement’s growth?
A: The order strengthens the company’s order book, improves revenue visibility, and enhances its reputation in the infrastructure sector.
Q6: Is Niraj Cement Structurals a good investment?
A: With a strong order book, solid financials, and a zero-debt structure, the company looks promising for long-term investors. However, short-term fluctuations in revenue should be considered.
Final Thoughts
Niraj Cement Structurals Limited has made a strong statement in the infrastructure sector with this major order win. Despite minor revenue setbacks, its profitability, zero-debt status, and new project pipeline make it an interesting stock to watch in the infra sector under ₹60.
With strong government focus on infrastructure development, the company seems well-positioned for long-term growth. Investors should keep an eye on its execution capabilities and future order wins for sustained performance.
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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.