From a trading price of ₹3.35 apiece in March 2020, shares of B L Kashyap & Sons have skyrocketed to the current level of ₹44, rewarding their shareholders with a whopping return of 1213%.
During this period, an investment of ₹1 lakh in the stock would have turned into a staggering ₹13 lakh. Further, the stock has consistently delivered remarkable gains over the last four years.
In the current year so far, the stock has generated a stellar return of 37%. Similarly, in the previous year, it delivered a decent return of 11.19%, and in the year before that, it recorded a substantial rally of 177%. In CY20, it rewarded shareholders with 24% gains.
B L Kashyap & Sons Ltd. (BLK) is one of the leading engineering, procurement, and construction (EPC) companies. The company has a presence in 12 cities across eight states in India. With three decades of expertise, BLK has completed over 250 projects and more than 125 million square feet.
The company's portfolio spread includes IT Campuses, Commercial Spaces, Malls, Hotels, Residential Complexes, Institutions, Factories and Manufacturing Facilities, healthcare, and Transportation.
The strong spike in the company's shares this year so far can be attributed to the company's robust order wins, which have significantly boosted investor confidence.
According to the company's recent exchange filing, it secured an order worth ₹369 crore from DLF Home Developers Limited for the Civil Structure & Waterproofing Works of DLF The Arbour in Sector 63, Gurugram. The order also includes a free supply of steel from DLF.
Additionally, in June, the company secured an order aggregating ₹147 crore from Nzuri Pune Knowledge Park Private Limited for Civil & Structural Work and all Associated Work. Earlier in May, the company won a significant order worth ₹132 crore from the Indian School of Business and another order worth ₹238 crore from Embassy Construction Pvt. Ltd.
In April, the company received an award for the Construction of Training Institute Buildings at Vadodara from the National High-Speed Rail Corporation Limited. The total value of the order was ₹141 crore.
Regarding financials, the company reported a 4.14% YoY drop in its consolidated revenue from operations to ₹1,110 crore in FY23, while the net profit also came in lower at ₹26 crore in FY23 as compared to ₹65 crore recorded in FY22.
On a positive note, the company displayed healthy growth in terms of orders, receiving a total of ₹1,125 crore worth of orders in FY23. These orders were spread across various segments, including railways, business parks, educational institutions, and residential complexes.
Among the orders received, the commercial segment accounted for the majority at 66%. As for the geographical distribution of orders, Karnataka stood out with the highest share of 50.81%.
Going forward, the company’s growth will be aided by strong execution of the order book and robust momentum in the construction and infrastructure sector as can be seen by the heavy inflow of projects. As of the end of June 2023, the company's order book stood at a total of ₹3,086 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
