Sanghvi Movers in news

Today morning, Sanghvi Movers announced that it has received two work orders with a total value in excess of Rs. 180 crore.

The first one is a turnkey customised solution for an eminent Independent Power Producers (IPP) in the renewable energy sector. The scope includes project monitoring and engineering solutions while delivering complete mechanical (cranes, trailers, and installation and commissioning services), civil, electrical, and site management activities. The duration of this order is ten months and the majority of this order (>95%) will be executed in FY 2024-25.

The second one is a new business offering, for above ground piping work, fabrication, painting and erection which includes supply of skilled manpower and tools and tackles specifically for the hydrocarbons sector. The order has been received from a diversified global EPC player and the duration is for six months, to be executed in this financial year.

The company is the largest crane rental company in India and Asia, and the sixth-largest in the world as ranked by International Cranes (June 2023). It has a 40-45% market share in the domestic market with 60-65% allocation in the high-end crane market of >400 MT.

The company has invested Rs.400 crore in the capex in FY24, up from the guided Rs.300 crore given in Nov’23. Most of this capex is for purchase of new cranes, which have been deployed on site and are already contributing to topline, evident from the jump in fixed assets (net) from Rs. 855 cr as of 31.3.23, to Rs. 1,016 cr as of 30.9.23. Another Rs. 120 cr is Capital work-in-progress as of 30.9.23. For FY25E, company plans similar capex for 35+% of fixed assets, as of date. Cleary, demand is huge and the company is now going all out, creating capacities to meet the future needs.

The stock price has reacted positively to this news; from its close of Rs.1064.35, it rose to Rs.1071 and then to an intraday high at Rs.1113.80. Its 52-week high is at Rs.1483.