MEP Infrastructure Developers gains after winning contract

MEP Infrastructure Developers rose 1.38% to Rs 51.25 at 12:20 IST on BSE after the company won toll collection rights at Toll Plaza near Dastan village including construction of new six lane bridge on Panvel creek in Maharashtra.

The company made announcement during market hours today, 20 November 2015.

Meanwhile, the BSE Sensex was up 181.04 points, or 0.7%, to 26,022.96.

On BSE, so far 41,002 shares were traded in the counter, compared with an average volume of 5.35 lakh shares in the past one quarter.

The stock hit a high of Rs 52.25 and a low of Rs 50.85 so far during the day. The stock hit a record high of Rs 67 on 17 July 2015. The stock hit a record low of Rs 41.20 on 25 August 2015.

The stock had underperformed the market over the past one month till 19 November 2015, falling 10.53% compared with Sensex's 5.57% decline. The scrip had also underperformed the market in past one quarter, declining 10.05% as against Sensex's 7.48% fall.

The small-cap company has an equity capital of Rs 162.57 crore. Face value per share is Rs 10.

MEP Infrastructure Developers (MEP) said that it has been awarded by Mumbai-JNPT Port Road Company, a special purpose vehicle (SPV) of National Highways Authority of India (NHAI), the rights for collection of user fee through User Fee Collection Agency on the basis of competitive bidding at Km 9.100, a Toll Plaza near Dastan Village for widening/ improvement in Km 6.400 to 14.500 (SH-54) and Km 0.000 to Km 6.202 of Amra Marg including construction of new six lane bridge on Panvel Creek in the State of Maharashtra. MEP has received the Letter of Acceptance (LOA) yesterday, 19 November 2015 from Mumbai-JNPT Port Road Company.

The period of the contract is one year. The contractual amount for the said project is Rs 21.60 crore payable to Mumbai-JNPT Port Road Company on a weekly basis over a period of one year.

On a consolidated basis, MEP Infrastructure Developers reported net profit of Rs 5.69 crore on net sales of Rs 483.38 crore in Q1 June 2015.

MEP Infrastructure Developers is among the leading players in tolling operations in the road infrastructure sector. The company's focus is on pure toll collection projects as well as OMT (Operation, Maintenance and Toll) collection projects, which involve maintenance obligations in addition to toll collection on operational roads including highways constructed by third parties.

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