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HomeStocksLikhitha Infrastructure - Techno-fundamental analysis

Likhitha Infrastructure – Techno-fundamental analysis

The stock of Likhitha Infrastructure is currently trading below its 200-day Exponential Moving Average (EMA) and above a strong support region, suggesting a potential investment opportunity due to impressive fundamentals. It has a Piotroski score of 5 and a G factor of 5, with a 21% decline from its all-time high. 

Analysing the chart, it’s evident that the stock is near the 200-day EMA and a previous resistance level, potentially acting as a strong support. The expectation is that the stock might rebound from these levels, given its historical respect for these points. Notably, the ace investor Ashish Kacholia has invested in this stock with a 1.77% stake. 

Likhitha infra Chart

As of September 30, 2023, Likhitha Infrastructure Ltd boasts an impressive outstanding order book, valued at approximately Rs 1,675 Crores. The City Gas Distribution sector accounts for 20% of the total order book, amounting to Rs. 325 Crores, while Cross-Country Pipeline Projects take the lead with a substantial 73%, equivalent to Rs. 1,230 Crores. Additionally, Tankage contributes 7% to the order book, totalling Rs 120 Crore.  

During the second quarter of the fiscal year 2024, Likhitha Infrastructure Ltd achieved significant milestones by securing major orders. The company was awarded a Cross-Country Pipeline project, inclusive of associated facilities, valued at Rs 155.87 Crore from Bharat Petroleum Corporation Ltd. In addition to this, Likhitha Infrastructure secured another substantial order in the same quarter, a Cross-Country Pipeline project, along with associated facilities, worth Rs 235.5 Crore from GAIL (India) Ltd. 

In terms of financials, the company has successfully minimized its debt. Over the past five years, Likhitha Infrastructure has achieved an impressive 52.6% Compound Annual Growth Rate (CAGR) in profits, showcasing its ability to navigate and thrive in a competitive business environment. Furthermore, the company boasts a solid track record of Return on Equity (ROE), with a noteworthy 26.6% ROE over the last three years. Likhitha Infrastructure’s consistent median sales growth of 27.7% over the last 10 years. 

Valuation 

From a valuation perspective, the stock appears undervalued with a P/E ratio of 16.8, compared to the 5-year median P/E of 17.3 This presents an attractive opportunity for investors looking for growth at a reasonable price. With a market capitalization of Rs 1,069 crore and a current price of Rs 269.80, this small-cap company.

Stock Performance

Stock of Likhitha Infrastructure Ltd has demonstrated a resilient performance over the past three months, despite facing a challenging market environment, with a modest decline of 15.99%. Looking at a broader horizon, the one-year performance showcases growth of 12.69%. However, the most impressive aspect lies in the three-year performance, where Likhitha Infrastructure has exhibited remarkable growth, soaring by 186.67%. 

Learn: TechnoFunda Investing

About the company  

Likhitha Infrastructure Ltd is in the business of laying gas supply pipelines and irrigation canals, building bridges over the canals and related maintenance works  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions. 
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