Micro Cap Stock Below ₹60 Soars 14% After Securing ₹91 Cr Govt. Order in Arunachal Pradesh
A micro cap stock, Brahmaputra Infrastructure Ltd, made headlines this week as it witnessed a sharp 13.6% intraday surge, following the announcement of a massive ₹91.5 crore EPC order from a government entity for key construction projects in Arunachal Pradesh. This development has sparked renewed investor interest and positioned the company as a rising star in the infrastructure sector, especially in India’s northeastern region.
📈 Stock Performance Highlights
On Thursday, shares of Brahmaputra Infrastructure jumped from ₹51.07 to an intraday high of ₹58.01, before settling at ₹55.55 by the end of the session. This marks a significant upward move of nearly 14%, highlighting the strong market sentiment surrounding the stock.
Over the last five years, Brahmaputra Infrastructure has rewarded its long-term investors with a remarkable return of over 160%, cementing its position among promising micro-cap infrastructure companies in India.
🏗️ Big Win: ₹91.5 Cr EPC Government Order
The latest boost comes as the company, under its joint venture Brahmaputra–PKV JV, secured a ₹91.49 crore Engineering, Procurement, and Construction (EPC) contract from Telecommunication Consultants India Ltd (TCIL), a Government of India enterprise. The scope of the work includes the construction of Eklavya Model Residential Schools (EMRS) in two tribal regions of Arunachal Pradesh — Aalo Village (West Siang district) and Ziro II Village (Lower Subansiri district).
This project is expected to be completed in 24 months and aligns with the Indian government’s efforts to uplift tribal education infrastructure under the EMRS scheme.
The deal represents a strategic milestone for the company, strengthening its footprint in the northeastern infrastructure landscape and showcasing its ability to deliver large-scale government-backed projects.
🛠️ Ongoing Key Projects Across India
Apart from the Arunachal project, Brahmaputra Infrastructure is involved in several critical infrastructure developments across the country:
- Assam: Construction of Assam Hills Medical College & Research Institute in Diphu, Karbi Anglong.
- Railways: Execution of the KYQ station project, which includes platforms, shelters, foot-over bridges, RCC tanks, and approach roads as part of the NBQ-GLPT-KYQ Doubling Project.
- Rajasthan: Multiple projects at JLN Hospital, Ajmer, including a Pediatrics Block with multi-level parking, Medicine Block, and Surgical Block. The company is also constructing the ASU Campus and associated facilities.
These ongoing projects highlight the company’s diversified project pipeline across healthcare, education, and transport infrastructure.
📊 Financial Snapshot
While the new order is a positive development, the company’s recent financial results indicate room for improvement:
- In Q3 FY25, the company reported:
- Revenue: ₹32.44 Cr (↓ 38.68% YoY)
- Net Profit: ₹0.32 Cr (↓ 93.93% YoY)
Despite the drop, Brahmaputra Infrastructure remains fundamentally strong in terms of liquidity and valuation.
📋 Key Financial Ratios:
| Metric | Value |
|---|---|
| Market Cap | ₹161 Cr |
| Current Price | ₹55.5 |
| 52-Week High / Low | ₹114 / ₹36.2 |
| Stock P/E | 13.4 |
| Book Value | ₹62.1 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 8.52% |
| ROE (Return on Equity) | 8.31% |
| Face Value | ₹10 |
| Debt-to-Equity Ratio | 1.02 |
| EPS (Earnings per Share) | ₹4.13 |
| Current Ratio | 3.41 |
💡 Analyst Take
The recent government order has elevated market sentiment, but the company’s decline in earnings over the past quarter is something investors should monitor. However, with a healthy order book, increasing presence in key infrastructure verticals, and strong liquidity ratios, Brahmaputra Infrastructure Ltd could be on a long-term growth trajectory if it continues executing its projects efficiently.
🔍 Frequently Asked Questions (FAQs)
Q1: Why did Brahmaputra Infrastructure stock jump 14% recently?
A: The stock surged after the company announced a ₹91.5 crore EPC contract with a government entity for constructing Eklavya Model Residential Schools in Arunachal Pradesh.
Q2: What is the significance of the new ₹91.5 Cr project?
A: It is a major government-backed project under the EMRS scheme aimed at enhancing tribal education infrastructure, boosting the company’s profile in public sector projects.
Q3: What kind of projects does the company currently handle?
A: Brahmaputra Infrastructure is engaged in medical college construction in Assam, railway station projects in the northeast, and hospital development in Rajasthan.
Q4: Is the company financially sound?
A: The company has a good current ratio of 3.41 and moderate leverage with a debt-to-equity ratio of 1.02. However, recent profits have declined, which needs close observation.
Q5: Is it a good investment at ₹55.5?
A: While short-term gains have been strong, long-term investment depends on future earnings recovery and project execution. Investors should watch the next earnings cycle for more clarity.
This news development is certainly one to watch, especially for investors looking at value picks in the infrastructure space under ₹100. With a large government contract in hand and a growing project portfolio, Brahmaputra Infrastructure Ltd is building momentum — both literally and figuratively.
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