SRM Contractors Limited Sees 70% Stock Surge Amid Major Contract Wins and Strong Financial Performance

SRM Contractors Limited has recently seen a surge in its stock price, rising over 70% from its 52-week low of ₹148 per share. The company has secured a significant contract worth approximately ₹45.25 crore from Odisha Mining Corporation Ltd (OMC) for the construction of a Gabion Wall at the South Kaliapani Chromite Mine. This project involves building a Mechanically Stabilized Earth Wall with Gabion Facia, designed to enhance the holding capacity of the overburden dump, which is vital for operational efficiency and environmental safety at the mining site. The project is expected to be completed within 12 months.

In addition to this major contract, SRM Contractors has also been awarded multiple significant projects from the National Highway Authority of India (NHAI). These include:

1. EPC Projects:
   • A project worth ₹100.45 crore for slope protection along NH55 in Himachal Pradesh.
   • Another project valued at ₹278.48 crore for upgrading NH-244 in Jammu and Kashmir.
2. 5-Year PBMC Contract:
   • A contract valued at ₹171.23 crore for strengthening and maintenance works on the Jetpur-Somnath highway in Gujarat.

Company Overview

Founded in 2008, SRM Contractors is an engineering construction and development company specializing in the construction of roads, bridges, tunnels, and slope stabilization, primarily in the regions of Jammu & Kashmir and Ladakh. The company holds ISO 9001:2015 certification and a Class A contractor registration with the Public Works (R&B) Department in Jammu & Kashmir, enabling it to bid for substantial government-funded projects. It operates as an EPC contractor, on an item-rate basis, or through joint ventures with other construction firms. Additionally, SRM Contractors collaborates with major infrastructure companies like HCC Ltd, Gammon, and Patel Engineering Ltd as a subcontractor.

Financial Performance

• Market Capitalization: Over ₹500 crore
• Return on Equity (ROE): 28%
• Return on Capital Employed (ROCE): 28%

Investment Insight

Given its recent contract acquisitions and robust financial metrics, SRM Contractors is an attractive micro-cap stock with potential for future growth, making it a noteworthy consideration for investors interested in the infrastructure sector.

Disclaimer

This article is for informational purposes only and should not be considered investment advice. Always conduct thorough research before making any investment decisions.