An engineering stock hit a 2 percent upper circuit after securing a Rs.1.57 crore order for the development of a jetty at Dhabol. This order marks a significant step in the company’s growth, bolstering its presence in infrastructure development.
Price Movement
During Wednesday’s trading session, Modern Engineering and Projects Ltd’s share price reached an intra-day high of Rs.40.65 per share, hitting a 2 percent upper circuit from its previous close of Rs.39.86 each. Over the past five years, the stock has delivered over 700 percent returns.
What Happened
Modern Engineering and Projects Ltd has been awarded a contract by Square Port Shipyard Private Limited for the construction of a slipway, transfer bay, repair bay, and extension of the jetty at Dhabol.
The contract, valued at Rs.157.46 crore excluding GST, is to be completed within nine months from the work order date.
Services Offered
Modern Engineering and Projects Ltd (MEPL) offers a broad range of services, including civil construction, transportation engineering, engineering design, project planning, feasibility studies, and project commissioning.
The company operates under various models such as Build, Operate, Transfer (BOT), Hybrid Annuity Model (HAM), and Engineering, Procurement, and Construction (EPC), catering to diverse infrastructure needs.
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Financial Overview
In its latest financial update, the company reported net sales of Rs.16.25 crore in Q2 FY25, reflecting a 2 percent decrease from Rs.16.61 crore in Q2 FY24. Moreover, net profits decreased 42 percent to Rs.0.42 crore, compared to Rs.0.72 crore in the same period.
Important Financial Ratios
The Return on Capital Employed (ROCE) of the company stands at 8.28 percent, while the Return on Equity (ROE) is 6.31 percent.
The company’s Price-to-Earnings (P/E) ratio is 19.44, which is lower than the industry average of 24.09. Additionally, the company maintains a stable current ratio of 1.84 and an Earnings Per Share (EPS) of Rs.2.05.
Company Profile
Founded in 1946, Modern Engineering and Projects Ltd (MEPL) is a key player in India’s infrastructure sector, specializing in a wide range of infrastructure development, including construction and engineering services.
Written by – Siddesh S Raskar
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