What Is the Order?
Deepak Builders & Engineers India Limited has successfully secured the L1 bidder position for an infrastructure development project in Kurukshetra, Haryana. The mandate involves the planning, design, engineering, procurement, and construction of building infrastructure facilities for Shri Krishna AYUSH University. This comprehensive contract also covers allied estate services.
The total bid project cost is pegged at approximately ₹559.50 crore, a figure that includes Goods and Services Tax. The project will be executed under the EPC model, ensuring a turnkey delivery for the client, the Haryana State Industrial & Infrastructure Development Corporation Limited.
Client Profile
- Haryana State Industrial & Infrastructure Development Corporation Limited (HSIIDC) is the nodal agency for industrial development in Haryana
- HSIIDC operates under the Department of Industries and Commerce, Government of Haryana
- The corporation is responsible for developing industrial estates and infrastructure facilities across the state
- Shri Krishna AYUSH University is a state-funded institution dedicated to alternative medicine systems
- The project is managed via the HSIIDC Industrial Estate office located in Karnal, Haryana
Business Impact
This project represents a significant addition to the company's order book, particularly as the contract value of ₹559.50 crore exceeds the company's current market capitalization of ₹363.28 crore. Securing an L1 position for a high-value state government project reinforces the company's competitive standing in the Engineering, Procurement, and Construction segment. This win provides revenue visibility for the coming years and strengthens the firm's portfolio in the institutional and educational infrastructure space.
The scale of this project suggests a substantial contribution to future operational revenue, which stood at ₹581.79 crore for the previous annual period.
Financial Context
Deepak Builders currently operates with a Trailing Twelve Month revenue of ₹542.36 crore and a net profit of ₹36.34 crore. The company maintains a mid-range performance profile with a Trendlyne Durability score of 50. While the stock has seen a significant one-year decline of 45.53%, it currently trades at a Price-to-Earnings ratio of 10, which is considerably lower than the industry average of 31.79.
The company's recent quarterly performance showed a 27.45% year-on-year revenue growth. High promoter holding at 72.03% indicates strong internal alignment with the company's long-term growth trajectory and project execution capabilities.
