A leading infrastructure development company has secured a major Rs. 52.2 crore project to establish sewerage networks and pumping stations in Bhubaneswar’s historic areas. The comprehensive project, spanning 24 months of construction followed by 60 months of maintenance, demonstrates the firm’s growing prominence in executing large-scale urban infrastructure initiatives.
Share Price Movement
The share price of Ganesh Infraworld Limited went up 4.6 percent to Rs. 139.6 per share on Tuesday, an increase from its previous close of Rs. 133.5 per share. The market capitalisation now stands at approximately Rs. 593.6 crore as of January 13, 2025.
What driving price?
Ganesh Infraworld Ltd. has received a Rs. 52.20 crore project for the sewerage network and pumping stations in Bhubaneswar. The project involves 24 months of construction and 60 months of operation and maintenance in areas like Mahaveer Nagar and Lingaraj Temple Area.
Financial Highlights
Revenue and profitability show a strong upward trajectory: revenue grew 117 percent from Rs. 13.34 crore in FY22 to Rs. 29.03 crore in FY24, while PAT margins improved from 2.33% to 5.33%. The company’s financial position strengthened with net worth rising to Rs. 6.61 crore and cash reserves increasing to Rs. 1.87 crore.
Borrowings increased to Rs. 3.07 crore to support growth, but improved EPS from Rs. 1.38 to Rs. 5.66 and rising NAV from Rs. 5.52 to Rs. 13.55 indicate effective utilisation of debt for business expansion and value creation.
The average price-to-earnings (P/E) ratio in the construction industry is 35.9, which is less than Ganesh Infraworld’s current P/E ratio of 147.
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Market Outlook
India’s infrastructure sector is set for robust growth, driven by a projected 11.4% CAGR in capital investment (2021-26) and strong FDI inflows of $33.91 billion. Population growth and economic targets necessitate significant investment in transport and real estate. REITs and InvITs have raised $15.6 billion, highlighting increased investor confidence.
Real estate investments surged to $2.77 billion in Q2 2024, reflecting sustained momentum. This underscores India’s commitment to enhancing infrastructure for its $5 trillion economy goal by 2025.
Shareholding Pattern
As of the September 2024 shareholding pattern, Ganesh Infraworld Limited is primarily held by the promoters at 59.09 percent, foreign institutional investors hold 2.24 percent, and the public with 37.89 percent.
About Company
Incorporated in 2017, Ganesh Infraworld Limited is a premier construction company in India, specialising in industrial, civil, residential, and commercial buildings, as well as road, railway, power, and water distribution projects. They offer comprehensive EPC services. Operating in 13 states, they have 41 active projects worth Rs. 57,485.53 crores as of August 2024, with major clients like Magnum Ventures and Raikela Iron Ore Mines.
Written By Fazal Ul Vahab C H
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