B L Kashyap & Sons secures ₹1,067 crore worth of orders in 2 days, equal to 65% of its market cap

B L Kashyap and Sons (BLK), a small-cap stock, has been making waves on Dalal Street with a series of order wins, boosting its order book and enhancing revenue visibility. On Monday, the company announced that it had secured an order worth ₹910 crore from BPTP Limited for the construction of civil structures for residential towers, including associated non-tower areas and a community building.

This was the second major order after the company secured a ₹157.26 crore contract on Friday from Manyata Promoters Private Limited for civil and structural works at the Embassy Manyata Business Park project. Together, these two orders amount to ₹1,067.26 crore, equivalent to approximately 65% of the company’s current market capitalization of ₹1,641 crore.

Earlier in May, the company had also bagged an order worth ₹510 crore from Fidatocity Homes Private Limited for the construction of a residential group housing project with a built-up area of approximately 28.30 lakh square feet.

Zooming out, it ended FY25 with a strong order book of ₹3,021 crore, representing 2.16 times its FY25 revenue. Haryana and Karnataka are the largest contributors to the company’s order book. Segment-wise, commercial projects account for 70% of the total order book, followed by residential (17%), institutional (8%), and infrastructure (5%), according to its latest investor filing.

Eyes bigger share of government projects

Looking ahead, the company aims to continue bidding for railway projects by leveraging its experience from completed, ongoing, and upcoming metro and railway projects. It plans to strategically grow its presence in the railway sector, with the goal of increasing the government project share to 25% of the order book in FY26, according to the company's recent investor presentation.

Currently, its private-to-government project ratio stands at 93:07. The company is targeting a more balanced ratio by capitalizing on infrastructure investments under the National Infrastructure Pipeline (NIP).

Strengthening balance sheet

As part of its future strategy, it said it plans to strategically monetize non-core assets to achieve financial freedom by FY2027. This will involve identifying and liquidating underutilized assets, optimizing its portfolio, and reallocating resources to high-growth areas.

Through the unlocking of non-essential assets, the company aims to strengthen its financial position, reduce liabilities, and increase flexibility for reinvestment in core business initiatives. Meanwhile, the company also stated that it has significantly reduced its debt from ₹700 crore to ₹275 crore in FY25.

It also informed us that there is currently no term loan outstanding, with only working capital and bank guarantee limits in place. CRISIL has upgraded the company’s credit rating to CRISIL B+/Stable/A4.'

Shares down 40% from recent peak, but still up over 1,000% in 5 years

The company’s shares entered a significant correction phase after hitting an all-time high of ₹120.55 apiece in August last year, shedding nearly 40% of their value since then to trade at current level of ₹73.

This sustained decline is largely due to profit-booking, following a sharp rally between June 2022 and August 2024, during which the stock surged 488% without any major pullbacks.

Looking at the long term, the stock is still up 1,162% over the past five years. From its March 2020 low of ₹3.30 apiece, the stock has jumped an impressive 2,112% to date.

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