J.Kumar Infraprojects shares hit a fresh 52-week high today; here’s why

Kumar Infraprojects Limited, engaged in executing contracts for a range of infrastructure projects, including Transportation Engineering, Irrigation Projects, Civil Construction, and Piling Work, has reached a fresh 52-week high today at Rs 473.55. The company’s 52-week low stands at Rs 216.45. The recent surge in the share price can be attributed to the company securing two new orders, one yesterday and one today.

Yesterday the company reported that it has secured a Letter of Acceptance (LOA) from the Mumbai Metropolitan Regional Development Authority (MMRDA). This LOA pertains to a project encompassing the design, supply, fabrication, and erection of structural steel works for pre-engineered buildings as well as the execution of both internal and external architectural finishes and plumbing works, including interior fitouts for five elevated stations: Diamond Garden, Shivaji Chowk, BSNL Metro, Mankhurd, and Mandale. This project is part of the Mumbai Metro Rail Project’s Line 2B Corridor, spanning from D.N. Nagar to Mandale, and holds a contract value of Rs 99.30 crore.

Today the company has reported that it has awarded a substantial LOA contract for the construction of Technical Accommodation and Allied Infrastructure for Command Hospital, Lucknow. This project falls under the Engineering, Procurement, and Construction (EPC) mode and comes with a substantial contract cost amounting to Rs 509 crore which includes GST. The project is divided into two parts 30 months for Phase I (Construction) & 60 months for Phase II (Maintenance).

Yesterday the scrip closed at Rs 453.85. Today, it opened at Rs 454 and closed around 468.20, up by 3.16%. The company currently commands a market capitalisation of approximately Rs 3,542.66 crore, with shares having generated a one-year multibagger return of 103.03%. As of July 31, 2023 company has an order backlog of Rs 14,351 crore.

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