Share price of Jyoti Structures Jumps 10% on PowerGrid’s Major Contract

Market Performance

Shares of Jyoti Structures soared by 10% on January 24, 2025, reaching ₹25 per share after securing a significant order from PowerGrid Corporation of India Limited. This considerable gain is part of a broader upward trajectory, with the stock surging by an impressive 400% since March 2023. Even after this rally, the Stock is 90% below it’s all time High of ₹311 that was achieved in February 2008.

The day's trading session saw increased investor activity, likely growing confidence in the company's potential.

Major Contract Win with PowerGrid

Jyoti Structures announced via an exchange filing that it received a Notification of Award from PowerGrid Corporation, a government-owned entity. The order, valued at ₹741.28 crore, is the largest secured by the company in recent years.

The contract involves:

• Design and Testing: Towers and line materials.
• Construction and Commissioning: ±800 kV HVDC Bipole Line (Hexa Lapwing) connecting KPS2 (HVDC) and Nagpur (HVDC), including a dedicated metallic return.
• Turnkey Project Management: Surveying, soil investigation, foundations, erection, stringing, testing, and commissioning.

This contract reinforces Jyoti Structures in executing turnkey projects in electricity transmission, distribution, and substation sectors across domestic and international markets.

Company Details and Financial Highlights

Revenue Performance: Revenue for Q2FY25 rose to ₹107.49 crore, up from ₹81.46 crore in the same period the previous year.

Net Profit: Net profit for Q2FY25 stood at ₹7.06 crore, down from ₹11.20 crore in the same quarter last year.

Growth Trajectory:

• The company has gained 400% since March 2023, with it’s share price climbing from ₹5 to ₹25.
• Despite the surge, the stock is still recovering from a prolonged slump between 2008 and 2018.
• Notable milestones include a 180% gain in CY21 and a 52% increase in CY24.

Historical Context and Investor Interest

Jyoti Structures' growth is closely watched, especially as it forms part of high-profile investor portfolios. The company garnered attention after ace investor Ashish Kacholia acquired a 2.52% stake in September 2024, later trimming it to 2%.

The stock's historical performance reveals a decade-long decline after peaking in 2008—however, consistent growth since 2019 signals a potential turnaround backed by strategic project wins and operational improvements

Summary

Jyoti Structures has demonstrated remarkable resilience and growth potential, buoyed by the recent ₹741.28 crore order from PowerGrid Corporation. This contract solidifies the company's industry standing and catalyzes its ongoing recovery. While financial performance in recent quarters shows some challenges, the company's ability to secure high-value projects underscores its long-term viability.

Investors may be optimistic about Jyoti Structures' future, though its dependence on securing large-scale contracts will remain a key factor in sustaining its growth trajectory.