Rs 270 crore order book: City Gas Distributor Secures New Orders Worth Over Rs 9,53,26,291.70 Crore From Bharat Petroleum Corporation Limited, Stock Hits 5% Upper Circuit

On Modnay July 14, 2025, the stock price locked in5 per cent upper circuit as the DESCO Infratech Limited (formerly Desco Infratech Pvt Ltd) that it has received new orders totaling Rs 9,53,26,291.70/- (Nine Crore Fifty-Three Lakhs Twenty-Six Thousand Two Hundred Ninety-One Rupees and Seventy Paisa Only), inclusive of GST. This includes a Letter of Award (LOA) from Bharat Petroleum Corporation Limited (BPCL), referencing an L1 bid previously intimated on July 8, 2025. Additionally, the company has secured orders from Torrent Gas Chennai Private Limited and Maharashtra Natural Gas Limited.

The orders encompass various works, including the laying of PE Network and associated works for a City Gas Distribution (CGD) Project at Ahmednagar, MDPE pipeline laying and PNG connections with associated work for a CGD project at Chennai, and a service contract for support services involving patrolling and surveillance of the gas pipeline network at Pune. All these orders were awarded by domestic entities. The company confirmed that no promoter, promoter group, or group companies have any interest in the entities that awarded these contracts, and the orders do not fall under related party transactions. Muskan Khandal, Company Secretary & Compliance Officer, signed the intimation.

Desco Infratech Limited, incorporated in January 2011, is an infrastructure company primarily focused on Engineering, Planning, and Construction services within the City Gas Distribution (CGD) sector in India. The company specialises in infrastructure development and maintenance, including pipeline laying, installation, testing, commissioning, and operations & maintenance (O&M) services for Piped Natural Gas (PNG) to domestic, commercial, and industrial consumers. Desco Infratech has expanded its services into power distribution, water distribution, and renewable energy sectors, offering services such as the installation of LT and HT power cables, design and construction of water distribution networks, and the erection of structures for solar modules. The company operates in over 40 cities across 14 states and has laid more than 4,000 kilometers of MDPE pipelines and delivered over 200,000 PNG connections since its inception.

The company has a market cap of Rs 185 crore and its order book stands at Rs 270 crore as of May 12, 2025. The shares of the company have a PE of 19.8x, an ROE of 26 per cent and an ROCE of 31 per cent. The stock is up by 46.34 per cent from its 52-week low of Rs 160 per share.

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