Synopsis: The share of the company surged by 10 percent to hit the upper circuit after it reported receipt of a Letter of Award for multiple contracts from Jharkhand Urja Sancharan Nigam Limited.
The shares of this company engaged in supplying and erecting power transmission and distribution infrastructure, including high-voltage transmission lines and substations, in focus upon receipt of Rs. 59.27 crore contracts.
With a market capitalization of Rs 288.63 crore, Ahmedabad Steelcraft Ltd’s shares on Friday made a day high of Rs 194.35 per share, up 10 percent from its previous day’s close price of Rs 176.4 per share. The shares have given a return of 1,147 percent over the last five years.
Significant Order
Ahmedabad Steel Craft Limited has announced the receipt of two domestic contracts from Jharkhand Urja Sancharan Nigam Limited (JUSNL), with a combined value of approximately Rs 59.27 crore. The projects involve the turnkey execution of a 132 kV double-circuit transmission line between Chandankiyari and ITI More, Chas, covering a distance of 20.5 km, with completion targeted within 18 months.
The first contract, valued at around Rs 33.20 crore, relates to the supply of equipment and materials, while the second contract, worth about Rs 26.07 crore, covers installation and erection activities.
The orders do not involve any related party transactions or promoter interests and further enhance the company’s order book, highlighting its expanding presence in India’s power transmission sector.
Incorporated in 1992, Ahmedabad Steel Craft Ltd specializes in power infrastructure EPC (Engineering, Procurement, and Construction) and manufacturing and trading. It is engaged in supplying and erecting power transmission and distribution infrastructure, including high-voltage transmission lines and substations.
Financial highlights: revenue from operations grew by 68.3 percent to Rs 64.68 crore, corresponding to the same quarterly result last year. Accompanied by Net profit growth of 387.5 percent YoY to Rs 7.46 crore in Q2 FY26 and EPS growth of 32 percent YoY to Rs 4.94 per share in Q2 FY26.
The company still trades at a lower P/E of 14.4x compared to the industry. With a debt-free status, it has an ROE of 18.4 percent and an ROCE of 21.4 percent, reflecting efficient allocation of resources.
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