What Is the Order?
Deepak Builders & Engineers India Limited has formally received a Letter of Acceptance for an Engineering, Procurement, and Construction project from the Haryana State Industrial & Infrastructure Development Corporation Limited. The scope of work entails the construction of various buildings and allied estate services for the Shri Krishna Ayush University located in Kurukshetra, Haryana. The project encompasses diverse technical requirements including MEP services, horticulture, and integrated site development.
Valued at ₹548.70 crore inclusive of GST, the contract also includes a provision for price escalation, ensuring financial adjustments over the course of its 36-month execution period.
Client Profile and Project Significance
The contract was awarded by the Haryana State Industrial & Infrastructure Development Corporation Limited, which serves as the nodal agency for industrial and infrastructure development in the state of Haryana. By securing this mandate, Deepak Builders strengthens its relationship with state government bodies and reinforces its technical standing in the institutional construction segment. The project site is situated within the Industrial Estate in Karnal, Haryana, signifying a strategic infrastructure push for specialized educational and medical institutions in the region.
This order solidifies the company's presence in the North Indian construction market.
Business and Financial Impact
- The project value of ₹548.70 crore represents approximately 99 percent of the company's TTM operating revenue
- A 36-month execution timeline provides high revenue visibility through the 2028-29 fiscal periods
- The EPC model allows for integrated project management and streamlined procurement processes
- Successful execution of this large-scale institutional project may qualify the company for larger future government tenders
- The inclusion of price escalation clauses helps mitigate risks associated with raw material price volatility
Financial Context and Performance
Deepak Builders currently operates with an annual operating revenue of ₹554.28 crore and a market capitalization of ₹386.16 crore. While the company has seen a TTM net profit of ₹39.65 crore, its annual revenue growth showed a decline of 4.56 percent. However, recent quarterly performance has been stronger, with net profit growing 29.61 percent year-on-year.
The stock currently trades at a price-to-earnings ratio of 9.74, which is significantly lower than the industry average of 32.84. With a promoter holding of 72.03 percent, the company maintains a stable ownership structure as it enters this major project execution phase.
