Shares of Ceigall India rose sharply by up to 6.1% to touch Rs 634.20 during intraday trading on the BSE on Thursday. The surge followed the announcement that the company’s subsidiary, Ceigall Ludhiana Bathinda Greenfield Highway, signed a concession agreement with the National Highways Authority of India (NHAI) for a significant highway project worth Rs 981 crore.
Key Details of the Project
The highway project involves the construction of a six-lane, access-controlled Ludhiana-Bathinda Greenfield highway, a section of NH-754AD. This stretch will connect the Moga-Barnala Road (NH-703) near the village of Tallewal to the Delhi-Katra Expressway (NE-5) near Ludhiana. The development is a part of the Ludhiana-Ajmer Economic Corridor under the Bharatmala Pariyojna Phase-I in Punjab and will be executed on a Hybrid Annuity Mode. The project is slated for completion within 24 months, the company stated in an exchange filing.
Financial Performance and Stock Market Activity
Ceigall India reported net sales of Rs 809 crore for the second quarter of the 2024-25 financial year (Q2FY25), reflecting a 14% increase compared to Rs 708 crore in the same period the previous year. However, the company’s quarterly net profit dipped 26.29%, standing at Rs 83.02 crore in Q2FY25 compared to Rs 112.62 crore in Q2FY24.
The company’s shares, listed on both the BSE and NSE on August 8, 2024, have faced a decline of 8.77% from their issue price of Rs 401. As of 11:00 AM on Thursday, Ceigall India’s shares were trading at Rs 354 per piece, up 2.76% from the previous close. The broader market reflected contrasting trends, with the BSE Sensex trading 0.12% lower at 78,376.20 during the same period. Ceigall India’s market capitalization currently stands at Rs 4,309.64 crore.
Company Overview
Ceigall India Limited is a construction company specializing in engineering, procurement, and construction (EPC) services for highways and infrastructure projects in India. The company has a diverse portfolio, including roads, highways, flyovers, bridges, tunnels, and other essential infrastructure projects.
To date, Ceigall India has completed over 34 significant projects, including the Kartarpur-Sahib Project, the Delhi-Saharanpur Project, and a road-widening initiative in Punjab. With a focus on high-quality infrastructure development, Ceigall India continues to solidify its position in the Indian construction sector.
Strategic Implications
The Ludhiana-Bathinda Greenfield highway project represents a strategic milestone for Ceigall India, contributing to the company’s growing footprint in India’s infrastructure sector under the government’s flagship Bharatmala Pariyojna initiative. This project not only underscores the company’s technical expertise in highway construction but also aligns with national infrastructure development goals aimed at boosting connectivity and economic growth in Punjab and beyond.
