SRM Contractors is a construction and development company primarily engaged in the construction of roads (including bridges), tunnels, slope stabilization works, and other construction activities in Jammu & Kashmir (J&K) and Ladakh. It operates as an EPC contractor and on a unit-price basis for infrastructure projects and subcontracts infrastructure construction projects.
The grey market premium of SRM Contractors has surged amid a strong response on day one. Last heard, the company was commanding a premium of Rs 78-82 in the unofficial market, suggesting a listing pop of about 38-40 per cent for the investors. However, the premium in the grey market stood around Rs 65-70 earlier, when the issue was announced.
Brokerage firms, tracking the issue, are mostly positive on it. They suggest subscribing to the issue on the back of strong hold in the area of operations, rising capital allocation in the region and sound financial track record. However, operational efficiency and dependence on select customers is seen as a challenge for the company.
SRM Contractors' focus on equipment ownership and an in-house integrated model position them for continued success. Its financial performance has been consistently strong, and they currently maintain a healthy order book, indicating promising future prospects. However, some key considerations require investor attention, said Swastika Investmart. Read more:
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48, Jaora Compound, M.Y.H. Road, Indore-452001
0731 - 6644000
