Madhav Infra: Receives order of Rs 324 crore; stock shows good sign
After construction company, Madhav Infra Projects Limited, announced on Thursday that it received a work order of Rs 324 crore, its shares were seen locked in the upper circuit of 5 per cent on BSE.
In a press release issued to the markets, the company stated that the work order comprised a two-way split of Rs 154.26 crore and Rs 170.56 crore. One part of the order involves work on the 63 kilometre road stretch between Raghogarh & Ashoknagar Aaron Road within a 24-month time frame. The other tranche of the order includes work on a 90 kilometre road stretch for four different road segments. The company received a Letter of Award (LOA) from M.P. Road Development Corporation, an undertaking of Government of Madhya Pradesh.
Such high-value work orders and state government entities play the role of key revenue triggers for small companies. Due to small business spreads, these companies are highly reliant on normal economic activities and state governments for their order inflows. Additionally, it can also be inferred from such order inflow from local authorities that the economic activity in India is regaining its footing after the nationwide lockdown of over 45 days.
Madhav Infra Projects' most recent market value was reflected at Rs 154 crore while the value of the order it received is almost double that, giving a positive boost to the investor sentiments in the current fiscal year.