Small-cap stock in focus: Despite the Indian stock market traded in a narrow range on Thursday, May 8, shares of Chavda Infra, which is engaged in construction activities, jumped 11.3% to hit the day’s high of ₹148 apiece.
This significant boost in shares came after the company secured another major construction order. In today’s exchange filing, the company informed investors that it had secured an order from Arvind Aqua City for construction work, including R.C.C. work, masonry, plaster, and other tasks.
The value of this contract is ₹150 crore, which is equivalent to 42% of the company’s market capitalization of ₹355 crore.
With this latest order win, the company has received orders worth ₹222.75 crore during the current financial year and ₹441.73 crore during the current calendar year.
This has resulted in a total value of orders on hand of ₹1,452.93 crore, with an unexecuted order book is currently standing at ₹925.84 crore, as per company’s regulatory filing. The order book stands at four times the company’s FY24 revenue of ₹242 crore, underscoring significant revenue potential.
Earlier in March, the company received a ₹218.98 crore order from GIFT CITY, Gandhinagar, Gujarat.
Chavda Infra has established a strong presence in the real estate and construction sector in Gujarat, particularly in Ahmedabad and Gandhinagar. The company adopts a strategic business model focused on both residential and commercial projects, with a growing emphasis on high-rise buildings.
Since its inception in 1990, the company has completed over 130 projects across residential, commercial, and institutional sectors. Its portfolio spans various regions in Gujarat, with a significant concentration in Ahmedabad.
Chavda Infra’s long-term strategy focuses on building a healthy and diverse order book, with particular interest in high-value and complex projects that showcase its technical expertise and project management skills, as per the company’s latest financial report.
Chavda Infra share price trend
The company’s shares made their stock market debut in October 2023, listing with a 40% premium over the IPO price of ₹65. However, the stock couldn’t sustain its rally in the following months before gaining momentum in January.
Between January and September 2024, the stock witnessed a one-way spike, gaining 134%. The rally also pushed the stock to cross the ₹200 mark, reaching a fresh all-time high of ₹208.85. Nevertheless, amid sharp volatility in the broader market, the stock lost its gains and, at current levels, is trading 32% below its all-time high.
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