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MEP Infra gains after its joint venture wins road project from road ministry

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MEP Infrastructure Developers rose 2.96% to Rs 45.25 at 13:20 on after the company's joint venture received letter of acceptance from Ministry of Road Transport & for a road project.

The announcement was made during market hours today, 28 April 2016.

Meanwhile, the Sensex was down 268.61 points, or 1.03%, to 25,795.51.

On BSE, so far 1.13 lakh shares were traded in the counter, compared with an average volume of 83,863 shares in the past one quarter. The stock hit a high of Rs 46.40 and a low of Rs 44.85 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 34.20 on 12 February 2016. The stock had outperformed the market over the past one month till 27 April 2016, rising 13.27% compared with Sensex's 2.87% gains. The scrip had, however, underperformed the market in past one quarter, rising 1.5% as against Sensex's 6.42% gains.

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

MEP Infrastructure Developers said that MEP Infrastructure Developers-Sanjose India Infrastructure & Construction-joint venture (JV) has received letter of acceptance (LOA) dated 27 April 2016 from MORTH (Ministry of Road Transport & Highways) for a road project. The project is a rehabilitation and upgradation of NH 66, Kante-Waked section to four lanes in Maharashtra under National Development Project (NHDP)-IV on hybrid annuity mode.

The construction period of the project is 2 years from the appointed date. The concession period is 15 years excluding construction period of 2 years. The bid project cost is Rs 826.28 crore and operation and maintenance bid is Rs 11.60 crore for the first year. The joint venture will receive bi-annual annuity from MORTH post commercial operation date. MEP Infrastructure Developers said that MEP Infrastructure Developers-Sanjose India Infrastructure & Construction-joint venture hybrid annuity order book stands at Rs 2589.26 crore to be executed over the next 3 years from the appointed date.

On a consolidated basis, MEP Infrastructure Developers reported net profit Rs 5.28 crore in Q3 December 2015 as against net loss of Rs 35 in Q3 December 2014. Net sales declined 6% to Rs 497.28 crore in Q3 December 2015 over Q3 December 2014.

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 constructed by third parties.

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First Published: Thu, April 28 2016. 13:04 IST
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