The shares of this project management consultancy firm specializing in the infrastructure field have hit an upper circuit of 5 percent following the announcement that the company has been selected as the Class A Vendor/Consultant.
Price Action (WA:ACT)
With a market capitalization of Rs. 246.62 crores, Dhruv Consultancy Services Ltd (NSE:DHUR) jumped 5 percent to an upper circuit of Rs 130.03 on Wednesday, compared to the previous closing price of Rs. 123.84.
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What Happened
The company is officially recognized by Indian Port Rail and Ropeway Corporation Limited (IPRCL) as a Class A Vendor/Consultant according to the company reports on January 21, 2025, this approval is applicable to a number of highway and railway projects.
The company has a 24-month contract that expires on January 31, 2027, for both highway and railway projects. Dhruv Consultancy will be awarded projects on a fixed fee basis based on the rotation of consultants.
The cost of creating a feasibility study report that evaluates the project’s viability is known as the FSR Fee. The cost of creating a detailed project report that includes all operational, financial, and technical information necessary for project implementation is known as the DPR Fee.
For Highway projects valued up to Rs 150 crores, the FSR is 0.25 percent and DPR is 0.50 percent. For Rs. 150 crores to Rs. 500 crores, FSR is 0.24 percent and DPR is 0.48 percent. More than Rs. 500 crores, FSR is 0.23 percent and DPR is 0.46 percent.
For Railway projects valued up to Rs 150 crores, the FSR is 0.20 percent and DPR is 0.40 percent. For Rs. 150 crores to Rs. 500 crores, FSR is 0.24 percent and DPR is 0.48 percent. More than Rs. 500 crores, FSR is 0.23 percent and DPR is 0.46 percent.
About the Company
Dhruv Consultancy Ltd specializes in highway design, DPR, project management, quality control, and authority engineering for Bridges, Highways, Architecture, Tunnels, Environment, and Ports. The company has a presence in 23 states in the country including Manipur, Gujarat, Kerala, and Himachal Pradesh.
The company’s total order book stands at Rs 666.9 crore with Rs 301.3 crore of unexecuted orders as of Q2FY25. The company has collaborated with NHAI, MoRTH, State, and the Central government on over 170 projects.
Written by Shwetha Sairam
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