Penny stock in focus after receiving ₹18.35 Cr order for power distribution infrastructure

Synopsis: Konstelec Engineers Limited has informed the stock exchanges that it has received a new work order from Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited, for power distribution infrastructure works in Madhya Pradesh. 

The shares of this penny cap stock majorly engaged in business of  EPC contracts  and specialized in delivering full-scale project management, procurement support, and detailed engineering services, were in focus after receiving work orders worth Rs. 18.35 Crores.

With the market capitalization of Rs. 70 Crores, the shares of Konstelec Engineers Limited were trading at around Rs. 46.5 per share which is 62.5  percent discount from its 52 week high of Rs. 124 per share and is trading at a P/E of 27.2 whereas industry P/E stands at 18.8. 

What is the News

Konstelec Engineers Limited has been awarded a work order by Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited for supply, installation, testing and commissioning of new 11 KV lines,  LT lines on AB cable, conversion of bare conductors into LT AB cable, setting up distribution transformer substations, and other supporting works like DPs, TPs, crossing etc. 

The total value of the order is Rs. 18.35 crore, including taxes, and the work is expected to be completed within 18 months from the date of the award notification. The order has been given by a domestic entity, and there is no promoter interest or related party involvement in the contract. 

About the Company and Financials

Konstelec Engineers Limited is majorly engaged in business of  EPC contracts  and specialized in delivering full-scale project management, procurement support, and detailed engineering services whose presence is across multiple sectors which includes Hydrocarbon Oil & Gas, Power, Ports and Shipyards etc. The company has an order book of Rs. 650 Crore as of Q2FY26,delivering over 200 projects where  95 percent of the revenue is contributed by the domestic industry. 

Year on Year analysis: Revenue from operations has increased from Rs. 84 Crores to Rs. 105 Crores, up 25 percent. Operating profit has decreased  from Rs. 8 Crores to 7 Crores, down 12.5 percent and Net profit has decreased from Rs. 4 Crores to Rs. 2 Crores, down 50 percent. 

Half yearly analysis: Revenue from operations has decreased  from Rs. 109 Crores to Rs. 105 Crores, down 3.6 percent. Operating profit has increased from Rs. 5 Crores to Rs. 7 Crores, up 40 percent and net profit has increased from Rs. 1 Crore to Rs. 2 Crore, up 100 percent. 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

. 

The post Penny stock in focus after receiving ₹18.35 Cr order for power distribution infrastructure appeared first on Trade Brains.