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SRM Contractors Secures Deal from NHAI Worth Rs 278 Cr for Road Project

Jul 16, 2024

By: BlinkX Research Team

On Monday, July 15, SRM Contractors announced that it has penned a contract with the National Highway Authority of India (NHAI) for a new EPC project.

Key Takeaways from SRM Contractors’ Acquisition

• SRM Contractors wins NHAI contract for road project worth Rs 278 crore
• The project in the Union Territories of Jammu and Kashmir would fortify and enhance the H-244 Nashri-Chenani segment via Patnitop.
• The project quoted for the said project is valued at Rs 278.48 crore.
• The project is anticipated to be finished in 24 months.
• As of the previous closing, SRM Contractors' market capitalization was valued at Rs 478.84 crore, or almost 0.58 times the value of the contract in question. 

The project includes upgrading and strengthening the H-244 Nashri-Chenani segment via Patnitop in the Jammu and Kashmir Union Territories. The price quoted for the said project is Rs 278.48 crore and the project has to be completed within 24 months.

The value of the aforementioned contract is nearly 0.58 times the entire market capitalisation of SRM Contractors, which as of the previous close was at Rs 478.84 crore. 

The company recorded an 11.73% decrease in its consolidated net profit to Rs 6.17 crore for the quarter ended March 2024, despite a 4.93% increase in sales to Rs 107.87 crore in the same period compared to Q4 FY23.

About SRM Contractors Limited

SMC Contractors Limited, founded in September 2008, is an engineering construction and development company that specialises in the construction of roads (including bridges), tunnels, slope stabilisation works, and other civil construction activities in the union territories of Jammu and Kashmir and Ladakh. The firm does construction work as an EPC contractor as well as on an item rate basis for infrastructure projects.

SRM has also completed subcontracting jobs for infrastructure projects. The company has a track record of completing road, tunnel, and slope stabilisation projects in the difficult terrain of the union territories of Jammu and Kashmir, and Ladakh, so it believes it has developed the expertise and know-how to undertake infrastructure construction projects in difficult terrains.

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