Microcap Stock Hits Upper Circuit After ₹24.77 Cr Contract Win for Udaipur Airport Project
🚨 Microcap Stock Hits Upper Circuit After ₹24.77 Cr Contract Win for Udaipur Airport Project 🚨
Microcap Stock: In a significant development that has grabbed the attention of retail and institutional investors alike, Power & Instrumentation (Gujarat) Ltd, a microcap stock in the electric equipment sector, surged to hit the 2% upper circuit in Wednesday’s trading session. The stock movement came on the heels of a major contract win worth ₹24.77 crore for electrical works at the Udaipur Air Terminal, Rajasthan.
🔔 Contract Details: Power Surge for the Microcap Player
The ₹24.77 crore order, inclusive of GST, was awarded to Power & Instrumentation (Gujarat) Ltd by Nyati Engineering & Construction Private Limited. The contract involves a comprehensive scope of work including design, supply, installation, testing, commissioning, and handover of a power supply and electrical infrastructure system for the Udaipur Air Terminal.
This isn’t just a small-scale assignment—this project covers end-to-end electrical work and must be delivered within a tight timeframe of six months from the contract’s effective date.
This contract strengthens the company’s credentials as a trusted player in large-scale infrastructure electrification projects, especially in high-profile government and aviation-related sectors.
📈 Stock Movement and Market Sentiment
The news of the contract win sparked immediate investor interest:
- Current Price (Wednesday): ₹160.88
- Previous Close: ₹157.73
- Day’s Low: ₹154.57
- Day’s Gain: ~4% from day’s low, and nearly 2% up overall
- Market Cap: ₹278.21 crore
The sharp upward move on the back of this news reflects strong investor confidence and the market’s recognition of growth visibility from such institutional projects.
🏢 About the Company: Power & Instrumentation (Gujarat) Ltd
Power & Instrumentation (Gujarat) Ltd is a well-established name in the electrical contracting and EPC (Engineering, Procurement & Construction) sector. With a legacy of executing large-scale power infrastructure projects, the company has:
- Electrified over 1 lakh BPL households
- Completed 35+ airport electrification projects
- Laid 20,000+ km of High Tension (HT) and Low Tension (LT) lines
- Built expertise in generation, transmission, and distribution sectors
Its strong technical capability and commitment to timely execution make it a preferred partner in both government and private sector projects.
📊 Key Financial Ratios
| Metric | Value |
|---|---|
| Market Capitalization | ₹278.21 Cr |
| Current Market Price | ₹160 |
| 52-Week High / Low | ₹417 / ₹65.2 |
| Stock P/E Ratio | 22.8 |
| Book Value | ₹59.9 |
| Dividend Yield | 0.12% |
| Return on Capital Employed (ROCE) | 17.0% |
| Return on Equity (ROE) | 12.2% |
| Face Value | ₹10.0 |
📌 Why This Matters for Investors
This project win is a clear revenue booster and could reflect positively in the company’s upcoming quarterly results. Moreover, Power & Instrumentation’s consistent track record, focus on critical infrastructure, and niche market position in electrical EPC services could offer long-term value to investors looking at small-cap opportunities with growth potential.
With rising government expenditure on infrastructure, particularly airports and urban electrification, the company stands to benefit from a pipeline of potential orders.
❓ Frequently Asked Questions (FAQs)
Q1. Why did Power & Instrumentation (Gujarat) Ltd hit the upper circuit?
The stock hit the upper circuit after it secured a ₹24.77 crore contract for electrical work at the Udaipur Air Terminal, sparking investor enthusiasm.
Q2. Who awarded the contract to Power & Instrumentation?
The contract was awarded by Nyati Engineering & Construction Private Limited.
Q3. What does the contract involve?
The project includes design, supply, installation, testing, commissioning, and handover of electrical systems at the Udaipur airport terminal.
Q4. What is the timeline for project completion?
The project is to be completed within 6 months from the date of the contract award.
Q5. How has the stock performed recently?
The stock rose nearly 2% on Wednesday and is up 4% from the day’s low, indicating positive market sentiment following the news.
Q6. What are the financial highlights of Power & Instrumentation (Gujarat) Ltd?
It has a market cap of ₹278.21 Cr, a P/E of 22.8, ROCE of 17%, and a book value of ₹59.9, suggesting it is fairly valued among small-cap peers.
Q7. Is the company involved in any other large-scale projects?
Yes, the company has completed 35+ airport projects and laid over 20,000 km of transmission lines, highlighting its vast experience and capabilities.
🔍 Conclusion
With this new order in its bag, Power & Instrumentation (Gujarat) Ltd continues to cement its reputation as a reliable player in India’s power infrastructure space. The latest project win not only enhances its order book but also signals a strong growth trajectory ahead. For investors scouting the next multibagger in the microcap space, this stock deserves a close look.
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