Ceigall India stock soars 7% as investors cheer upbeat Q1 earnings

Ceigall India recorded an on year improvement across all three key parameters of revenue, profit and profitability in Q1.

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Ceigall India shares surged as much as 7 percent on August 27 as investors cheered for the company's upbeat earnings for the April-June quarter. The road infrastructure developer's net profit for the quarter surged nearly 69 percent on year to Rs 79.4 crore in Q1 of FY25, up from Rs 44.2 crore in the same period last fiscal.

Bottomline growth was aided by an equally impressive topline growth of over 32 percent to Rs 820 crore, as against Rs 620 crore in the base period. The operational performance also improved as the EBITDA margin expanded sharply to 17.5 percent as compared to 13.4 percent in the same period last year.

At 10.45 am, shares of Ceigall India were trading at Rs 405.55 on the NSE, sharply off its day's high of Rs 421.50. The stellar earnings also tipped off a spike in volumes in the counter as 28 lakh shares changed hands on the exchanges so far, significantly higher than the one-week daily traded average of 11 lakh shares.

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Shares of Ceigall India made their market debut earlier this month, listing at a premium of 5 percent at Rs 419 on the NSE, as against its IPO price of Rs 401 per share. The stock is currently trading over 6 percent lower than its listing price.

In an interaction with CNBC-TV18 post its listing, Bhagat Singh and Ramneek Sehgal from Ceigall India, stated that the company plans to utilise proceeds from the public issue to reduce debt and purchase machinery.

The company has also quoted for the longest metro project in Agra, valued at Rs 1,528 crore, and currently holds an order book of Rs 9,400 crore, with 80 percent from NHAI. "The company has also bid for projects worth Rs 16,000 crore," the duo said. "While standalone cash flows are positive, operating cash flows are negative due to the HAM project, where 40 percent of payments are received during execution and 60 percent as annuity income. As these HAM projects are completed, cash flow is expected to strengthen. Ceigall India consistently bids for contracts based on targeted EBITDA margins," they explained.

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