Vishnusurya Projects and Infra Secures Rs 2,217 Crore Desalination Plant Contract from SIPCOT

The shares of Vishnusurya Projects and Infra Ltd have soared by 16% after the company, along with its partners JWIL Infra Ltd and IDE Technologies India Pvt. Ltd, secured a Rs 2,217 crore contract from the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). The project involves the development of a 60 MLD seawater desalination plant in Mullakadu, located in the Tuticorin district of Tamil Nadu.

The contract, which is part of a Public-Private Partnership (PPP) under the Hybrid Annuity Model (HAM), includes a detailed timeline. The project will take 6 months to complete pre-construction conditions, 30 months for actual construction, and 15 years for Operation & Maintenance (O&M), followed by a transfer to the government. This significant win not only bolsters Vishnusurya's presence in large-scale infrastructure projects but also underscores their growing expertise in water management and desalination.

Vishnusurya Projects and Infra Ltd, a company with a market capitalization of Rs 443 crore, has seen its stock price climb to Rs 195.20 per share, up from Rs 167.65 per share in the previous session. Despite a 48% correction over the past year, this new contract is expected to provide a significant boost to the company’s financial performance and investor confidence.

Financially, Vishnusurya Projects and Infra delivered a revenue of Rs 271 crore in FY25, marking a 17% increase from the Rs 231 crore reported in FY24. Net profit grew by a modest 4% to Rs 29 crore in FY25, up from Rs 28 crore in the previous year. The company currently trades at a P/E ratio of 15.13x, significantly lower than the industry average of 42.67x, making it an attractive option for value investors.

Vishnusurya Projects and Infra Ltd is a diversified Indian company specializing in various sectors, including construction, mining, and technical consultancy. They are involved in the production of M-Sand, rough stones, and aggregates through their crushing and sand washing plants. Additionally, the company provides integrated drone solutions for surveillance, mapping, and surveying, enhancing their capabilities in project management and execution.

The company’s portfolio includes a wide range of real estate and infrastructure projects, such as villas, apartments, site formation, renovation, and government contracts, primarily in Tamil Nadu. This comprehensive approach positions Vishnusurya well to capitalize on the growing demand for sustainable and efficient infrastructure solutions in the region.

While the new contract is a significant milestone, investors should exercise caution and consult their financial advisors before making investment decisions. The views and investment tips expressed in this article are those of the author and do not necessarily reflect the views of Trade Brains Technologies Private Limited or its management. Trade Brains Technologies Private Limited and the author are not liable for any losses caused as a result of decisions based on this article.