Looking at the long-term performance, the stock generated a multi-bagger return of 676% over the last three years.
B L Kashyap & Sons, one of the leading civil engineering and construction companies, witnessed a robust performance in Wednesday’s early trading session. The company’s shares surged by nearly 7.65% to reach a fresh 52-week high of ₹57.75 apiece. This surge was triggered by an announcement made by the company in an exchange filing on Monday regarding a new contract secured from Delhi International Airport.
The contract is valued at ₹167 crore and involves the construction of structural works and other finishing tasks. With this, the company’s order book as of date stands at ₹3,005 crore.
Earlier in July, the company won an order worth ₹369 crore from DLF Home Developers Limited for the civil structure and waterproofing works of DLF. The order also includes a free supply of steel from DLF.
Also in June, the company secured an order aggregating ₹147 crore from Nzuri Pune Knowledge Park Private Limited for civil and structural work and all associated work. In May, it secured two significant contracts, one worth ₹132 crore from the Indian School of Business and another worth ₹238 crore from Embassy Construction Pvt. Ltd.
Investors have responded positively to these impressive order wins, driving the stock to rally by 73% in the current year. Looking at the long-term performance, the stock generated a multi-bagger return of 676% over the last three years.
B L Kashyap & Sons Ltd. (BLK) is one of the leading engineering, procurement, and construction (EPC) companies. The company has a presence in 12 cities across eight states in India. With three decades of expertise, BLK has completed over 250 projects and more than 125 million square feet.
The company’s portfolio spread includes IT campuses, commercial spaces, malls, hotels, residential complexes, institutions, factories and manufacturing facilities, healthcare, and transportation.
“The company has moved into FY2023–24 with a strong order book. Efficient execution will continue to be a primary focus area for the company. Given the order book and execution plans in place, B L Kashyap is expected to register good double-digit growth in revenues in FY2023–24. There is a strong emphasis on continuing to focus on efficiency and better utilization of capital to improve profitability and enhance cash flows in operations,” the company said in its FY23 annual report.
Given the improvements in the balance sheet, the company expects to secure larger-size projects in 2023–24 that will have better profit margins. The order book is also expected to grow well during 2023–24.
Essentially, the company is well poised for strong profitable growth in the next financial year, but the focus is on embarking on this growth journey with minimal external debt, it added.
In terms of financial performance, the company reported a consolidated net profit of ₹9.96 crore in Q1 FY24, down from ₹11.73 crore recorded in the same period the previous year. However, there was a sequential improvement in net profit, as in the preceding March quarter, the company had reported a net loss of ₹31.93 crore.
Furthermore, the consolidated revenue from operations during the June quarter came in at ₹252 crore, showing a decline from the ₹288.59 crore reported in Q1FY23.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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