Ceinsys Tech Achieves 20% Upper Circuit After Securing Rs. 248 Crore Contract from Maharashtra Government

Shares of Ceinsys Tech (CTL) saw a surge, hitting the 20% upper circuit at Rs. 313.55 on the BSE at 11:43 AM on Monday, propelled by substantial trading volumes. This rise comes in the wake of the company's announcement of securing a significant contract worth Rs. 248 crore from the Maharashtra Government. Over the past six weeks, the stock has witnessed an impressive rally of 63%.

In an official exchange filing, CTL disclosed that it had secured a work allocation order from the State Water and Sanitation Mission (SWSM) and the Water Supply and Sanitation Department (WSSD), Government of Maharashtra, amounting to Rs. 248.39 crore. This order pertains to the appointment of System Integrators (SIs) for IoT Deployment, encompassing design, implementation, and maintenance with a Centralized IoT Platform for Jal Jeevan Mission Projects within the State of Maharashtra.

The stipulated time frame for the order involves a two-year period for implementation and five years for operations and maintenance (O&M). Trading activity for the stock surged nearly five-fold on this announcement. Approximately 499,000 shares, representing 3% of CTL's total equity, changed hands on the BSE by 11:55 AM. Notably, there were pending buy orders for 59,104 shares on the exchange, according to available data.

As of now, CTL is trading under the 'X' segment and is exclusively listed on the BSE. The company specializes in providing Geographical Information Services (GIS) and Engineering Solutions, offering services such as GIS, Remote Sensing, LiDAR, Photogrammetry, Energy System solutions, Engineering Design Services, Surveys, and Customized Application Development.

CTL is optimistic about robust growth in its water business vertical, owing to the rising demand for solutions that integrate water management into the broader development of public and industrial infrastructure, capacity planning, and management practices. The outlook for the energy segment for FY24 remains highly positive, with strong growth anticipated. This growth will be driven by opportunities in grid modernization, transmission capacity, Intelligent Asset Management (IAM), and the integration of smart and microgrids.

Furthermore, Ceinsys's Mobility and Manufacturing Engineering services business unit achieved a notable 25% year-on-year growth in FY23 and is poised for a year of exponential expansion. The outlook for the upcoming fiscal year is promising, fueled by continued growth potential in the electric vehicle (EV) ecosystem and manufacturing automation, as stated in the company's FY23 annual report.

CARE Ratings maintains a Stable outlook on CTL's long-term and short-term bank facilities, reflecting its confidence in the company's ability to uphold its business risk profile and extend its geographical reach by leveraging Allygrow Technologies Private Limited (ATPL's) overseas network.

BS