Ceigall India shares rally 7% after net profits soar 69% in Q1FY25 earnings

Share price of Ceigall India rose 7.01 per cent at Rs 421.75 per share on the BSE in Tuesday’s intraday deals. This came after the road infrastructure developer reported a nearly 69 per cent increase in net profit for the April-June quarter of financial year 2024-25 (Q1 FY25), rising to Rs 79.4 crore from Rs 44.2 crore in the same period last fiscal year. 

This growth was supported by a 32 per cent increase in revenue, which reached Rs 820 crore compared to Rs 620 crore previously. 

Operational performance improved significantly, with the earnings before interest, tax, depreciation, and amortisation (Ebitda) margin expanding to 17.5 per cent from 13.4 per cent year-on-year.

The company’s total expenses rose 21.60 per cent year-on-year at Rs 726 crore from Rs 597 crore recorded in the June quarter of the previous year. 

The share price of the company has moved up 1.6 per cent since its listing on the Indian bourses on August 8, 2024. Through its initital public offering, the company successfully raised Rs 1,252.66 crore. 

Prashanth Tapse, Senior VP (Research) at Mehta Equities, held his long-term positive outlook on Ceigall India's business model, with a high focus on the infrastructure theme. 

“The company could deliver impressive revenue growth, driven by a strategic focus on specialised structures and road projects, which underscores its technical expertise and market demand for its services. With a diverse order book spanning various regions and project types, Ceigall is well-positioned for sustained revenue visibility and profitability," Tapse had said earlier this month. 

According to him, despite slightly higher valuations, the company's book-to-bill ratio offers healthy revenue visibility, standing at over 3 years, which is at the higher end compared to industry peers.

At 12:58 PM the shares of the company were trading 2.12 per cent higher at Rs 402.45 per share. By comparison the BSE Sensex was up 0.15 per cent at 81,816 levels. 

Founded in 2002, Ceigall India Limited is an infrastructure construction company with expertise in specialised structural projects, including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways.