Penny Stock Below Rs 200: This Small-Cap Infra Company Secures Rs 11.59 Crore Order From Assam Government; Check Details

On Friday, Indian equity benchmark NIFTY traded higher, gaining 31.75 points or 0.13 per cent to 24,122.60. Meanwhile, Brahmaputra Infrastructure was trading at Rs 158.01, up Rs 1.15 or 0.73 per cent. The stock outperformed the benchmark during the session after the company announced that it had received a Letter of Acceptance (LOA) for a tender valued at Rs 11.59 crore. 

Brahmaputra Infrastructure Secures Rs 11.59 Crore Healthcare Order

Brahmaputra Infrastructure Limited has received an LOA from the Assam Health Infrastructure Development and Management Society (AHIDMS), Government of Assam, Medical Education and Research Department (MERD). The order is related to the ASSIST Project for the repair and renovation of healthcare facilities in Assam. 

The total value of the order stands at Rs 115.90 million, equivalent to Rs 11.59 crore, and Brahmaputra Infrastructure is the 100 per cent sole bidder for the project. The execution period has been set at 12 months. 

Three Healthcare Facilities Covered Under Project

The project covers repair and renovation work at three healthcare facilities in Assam. These include the GNM School of Nursing at AMCH, Dibrugarh; B.Sc. Nursing College, Dibrugarh; and GNM Training Centre at Civil Hospital, Tinsukia.

The scope of work includes civil Construction, structural repairs, renovation and upgradation of these healthcare facilities. The project is domestic in nature and is being undertaken under the ASSIST initiative. 

Brahmaputra Infra Expects 20-25% EBITDA From Project

The latest order is expected to strengthen Brahmaputra Infrastructure's presence in the healthcare infrastructure segment. According to the company's disclosure, execution of the project would add healthcare-sector experience to its pre-qualification profile and strengthen its credentials for future opportunities.
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The company also highlighted that the project represents its continued engagement in healthcare infrastructure development and government-sponsored healthcare initiatives. It is expected to further consolidate Brahmaputra Infrastructure's presence and credentials in Assam and the broader North Eastern region. 

Importantly, the company stated that it expects an EBITDA margin of 20 per cent to 25 per cent from this particular project. 

Order Status and Other Details

Brahmaputra Infrastructure has confirmed that the LOA has been received from AHIDMS, while the company is currently in the process of submitting the required performance securities. 

The company has also clarified that neither the promoter, promoter group nor group companies have any interest in the entity inviting the tender. Further, the transaction does not fall under the related-party category, as AHIDMS is not a related party of Brahmaputra Infrastructure. 

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Disclaimer: The article is for informational purposes only and not investment advice.