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Gabion Technologies Shares Jump 4% After Receiving Approval for Bullet Train Project

Alex Smith

Alex Smith

1 week ago

3 min read 👁 3 views
Gabion Technologies Shares Jump 4% After Receiving Approval for Bullet Train Project

Synopsis: Gabion Technologies India Ltd shares rose 4% upon receiving Vendor Approval/Notice of No Objection for its Rock Catch Fence/Barrier system for Package C3 of the Mumbai–Ahmedabad High-Speed Rail Project, awarded to Larsen & Toubro.

The shares of the Penny stock company specialising in the manufacturing, design, and installation of wire mesh gabions, rockfall protection netting, and geosynthetic materials, are in focus upon receiving Vendor Approval for L&T’s Bullet Train Project.

With a market capitalization of Rs. 95.71 Crores on Monday, the shares of Gabion Technologies India Ltd rose upto 3.59 percent, reaching a high of Rs. 73.00 from its opening price of Rs. 70.47. 

What Happened

Gabion Technologies India Ltd, engaged in the manufacturing, design, and installation of wire mesh gabions, rockfall protection netting, and geosynthetic materials, has received Vendor Approval / Notice of No Objection (NONO) for its Rock Catch Fence / Barrier system for use in Package C3 of the Mumbai–Ahmedabad High Speed Rail (Bullet Train) Project. 

The approval, granted by the Engineer, follows a satisfactory review of the Company’s design methodology, technical documentation, and test results, in line with approved project specifications and procedures. Package C3 has been awarded to Larsen & Toubro Construction and includes major civil and slope protection works.

This approval enables Gabion Technologies India Limited to participate in supplying Rock Catch Fence/Barrier systems for slope protection and safety works under the project. Additionally, the Union Budget’s announcement on expanding India’s high-speed rail network beyond the Mumbai–Ahmedabad corridor signals strong long-term growth opportunities for companies operating in specialised rail infrastructure and safety systems.

Management Comment: Management stated that the vendor approval for Rock Catch Fence/Barrier systems for the MAHSR Project reflects the Company’s engineering expertise and commitment to delivering high-quality safety and protection solutions for complex infrastructure projects. The evolving policy support for high-speed rail development further strengthens the long-term growth outlook for the Company. 

Financials & Others

The company’s revenue declined by 4.20 percent from Rs. 105 crore in March 2024 to Rs. 100 crore in March 2025. Meanwhile, the Net profit rose from  Rs. 6 crore to  Rs. 7 crore during the same period.

Gabion Technologies India Limited is engaged in the manufacturing, supply, and installation of steel gabions, rockfall protection systems, and geotechnical solutions for infrastructure projects across roads, railways, airports, mining, irrigation, defence, and urban development sectors.

They offer end-to-end engineering for slopes, roads, and mining, featuring products like Double Twisted Hexagonal Mesh and Defence Gabions. The company operates a manufacturing facility in Paonta Sahib, Himachal Pradesh, and serves projects globally.

The company demonstrates strong profitability, with a current ROE of 35.5% and a three-year average ROE of 38.8%, alongside a solid ROCE of 22.7%, reflecting efficient use of equity and capital.

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