Markolines Pavement Technologies soars on Rs 47.98 cr contract win

Markolines Pavement Technologies has received a work order worth Rs 47.98 crore (excluding GST), from M/S Western Andhra Tollway (a Domestic Corporation) located at Mahabubnagar, Telangana, India, for the work of Major Maintenance overlay works at Western Andhra Tollway, which shall be completed within 10 months. 

Markolines Pavement Technologies (Formerly known as Markolines Traffic Controls) is a Highway Operations & Maintenance (O&M) Service providing company. Their core commercial operations are roughly classified as highway operations, highway maintenance, and specialised maintenance services. 

Toll operations, route patrols, and incident management are examples of highway operations. These services are critical for guaranteeing roadway safety and efficiency. Routine maintenance, preventive maintenance, and significant maintenance and repairs are all part of highway maintenance. These services are critical for maintaining roadways and increasing their lifespan. Microsurfacing, base/sub-base stabilisation, and cold in situ recycling are examples of specialised maintenance services. These services are used to improve road life and quality. 

Markolines Pavement Technologies is currently trading at Rs 119.60, up by 3.80 points or 3.28% from its previous closing of Rs 115.80 on the BSE. The scrip opened at Rs 118.45 and touched a high and low of Rs 120 and Rs 117, respectively. So far 6,400 shares were traded on the counter. 

The BSE group ‘M’ stock of face value of Rs 10 has touched a 52-week high of Rs 207 and a 52-week low of Rs 95.25. The current market cap of the company is Rs 240.58 crore. The promoters holding in the company stood at 72.18%, while non-Institutions held a 27.82% stake in the company. 

At TTM, the company shares are trading at a PE of 14.2x, which is slightly lower than its industry PE of 19.2x. The company has maintained a three-year healthy ROE and ROCE of 22.5% and 26.5%, respectively. The company has a three-year compounded sales and profit growth of 22% and 30%, respectively. The company has a debt-to-equity of 0.36x with an interest coverage ratio of 7.87x.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.