SRM Contractors Ltd - Stock Valuation and Financial Performance

The company was incorporated on September 4, 2008 as ‘SRM Contractors Private Limited’, a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated September 4, 2008 issued by the Registrar of Companies, Jammu. Subsequently, the company was converted to a public limited company, pursuant to a special resolution passed by the shareholders of the company at the extraordinary general meeting held on June 30, 2023 and the name of the company was changed from “SRM Contractors Private Limited” to “SRM Contractors Limited”, pursuant conversion from private to public company and a fresh certificate of incorporation dated August 11, 2023 issued by the Registrar of Companies, Jammu.

The company is an engineering construction and development company engaged primarily in the construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh. It undertakes construction works both as an EPC contractor and on an item rate basis for infrastructure projects. The company also undertakes sub-contracting assignments of infrastructure construction projects. It has a track record of successful execution of road, tunnel and slope stabilization projects in the difficult terrain of union territories of Jammu & Kashmir and Ladakh. It has developed the expertise and know-how to undertake infrastructure construction projects in difficult terrains. The company has emerged as a key player in infrastructure construction industry in the Union Territories of Jammu & Kashmir and Ladakh and has developed technical capabilities to execute projects in hilly/ challenging terrain in the region.

The company is an ISO 9001:2015 certified company and it also registered as class A contractor with Public Work (R&B) Department, Jammu & Kashmir. As a result of the growth of the company’s road and tunnel construction business as well as the recent government initiatives and support to develop the infrastructure of union territories of Jammu & Kashmir and Ladakh, it has further forayed into executing other infrastructure projects such as standalone bridges, larger slope stabilisation works and other miscellaneous civil construction activities in order to capitalise on such rising opportunities. Recently, the company has also been awarded with a contract for slope stabilization work in the state of Uttarakhand. 

As an EPC contractor, the scope of the company’s services includes detailed engineering of the project, procurement of construction materials, plant and machinery, construction and execution of the project and its operation and maintenance in accordance with the contractual provisions. Its manpower, resources and fleet of machinery and equipment, together with its engineering capabilities, enables it to execute a large number of projects simultaneously. Its resources, quality of work and project execution skills have enabled it to enhance its relationships with existing clients and helps it to further secure projects from new clients. It undertakes contracts independently or whenever required, through its project-specific joint ventures with other infrastructure and construction entities when a project requires it to meet specific eligibility requirements in relation to certain large projects, including requirements relating to particular types of experience. The company also undertakes sub-contracting assignments from third party major infrastructure and construction entities.

Business area of the company

The company is a construction and development company primarily engaged in the construction of roads (including bridges), tunnels, slope stabilization works, and other construction activities in the Union Territories of Jammu and Kashmir and Ladakh.

Major events and milestones:

• September 2008: Incorporated as SRM Contractors Private Limited.
• 2010-11: Awarded Road Project i.e. Improvement /upgradation of Mandi Phagla Buffiaz road from km 6th to km15th on Mandi side and km 6th to km 16th on Buffliaz and construction of road (new)from km 16th to 25th on Mandi side and km17th to km 37th on Buffliaz side by way of rathwork cutting, X-drainage works, protection works, pavement etc (under CRF) on sub-contract basis, having a contract value of Rs 3,241.14 Lakhs (as on date the Project is completed).
• 2013-14: Successfully completed (through its the then JV) a Road Project i.e. Widening of Sakhi-Maidan-Kalai road in District Poonch, by ERA Jammu, having a contract value of Rs 773.88 lakh.
• 2014-15: Successfully completed a Road Project i.e. Construction of balance work of approach road from Kanthan to Dugga village (length 28km) on the Katra-Dharam section of USBRL project, District Reasi in J&K, by KRCL, having a contract value of Rs 1,728 lakh.
• 2014-15: The company established Loran Valley Power Project Private Limited, a Subsidiary of the company wherein the company held 51% of the shareholding.
• 2015-16: Successfully completed a Road Project i.e. Providing and laying 25mm thick SBDC including 50mm thick Bituminous Macadam on Siot Kalakote road km 18th to 22nd by, PWD Jammu.
• 2016-17: Successfully completed (through its then then JV) a Road Project i.e. Construction of balance work of approach road from Kanthan to Dugga village (length 28km) on the Katra-Dharam section of USBRL project, District Reasi in J&K, by KRCL having a contract value of Rs 2,650 lakh.
• 2017-18: Successfully completed a Road project i.e. Construction of road from Sangrampur to Gajansoo km 5th to km 14th by way of providing /lying of RBM filling, shingle Gr-11, 75mm thick wet mix macadam with paver finish 150mm thick in two layers of 75mm each,50mm thick BM 25mm thick SDBC,12NOS 1M span RCC culvert, 16nos. 1.5m span RCC Culvert, 5no. 3m span RCC Culvert , 1nos 0.90m dia HP culvert , 13 nos. 0.60m dia HP culverts, 7nos. 0.45m dia HP Culvert, 3423 m pucca drain, 300m edge walls, 2nos vented causeways of 13.50m and 58m length each and 1no. PSC girder double lane bridge of 40m span along with approaches by PWD R&B Jammu having a contract value of Rs 2,469.60 lakh.
• 2018-19: The company entered in Joint Bidding Agreement with M/s ECI Engineering & Construction Co. Ltd.
• 2018-19: Successfully completed a Road Project i.e. restoration of road by way of clearance of consolidated slips, surface boulder, side drain, culverts including reconstruction of damaged edge walls and R/wall on batote Kishtwar (NH-244) from 80.0000km to123.600 km division Doda in the state of Jammu & Kashmir by NHIDCL, having a contract value of Rs 2,525.56 lakhs. 
• 2018-19: The company entered in Joint Venture Memorandum of Understanding Agreement with M/s Sai Engineering Foundation.
• 2019-20: The company entered in Joint Venture Memorandum of Understanding Agreement with M/s Kapahi Construction Co.
• 2019-20: The company entered in Joint Venture Agreement with M/s Rajinder Infrastructure Private Limited.
• 2019-20: The company changed its registered office from ‘1A, Hillview, Near Higher Secondary School, Bahu Fort, Jammu – 180006, Jammu and Kashmir, India’ to ‘Sector 3, Near BJP Head Office, Trikuta Nagar, Jammu – 180012, Jammu and Kashmir, India’.
• 2019-20: The company entered in two Joint Venture Agreement with M/s Rajinder Infrastructure Private Limited.
• 2020-21: Successfully completed Tunnel Project i.e. Construction of wider section of Tunnel for a length of 85m (approximate) from km 42/977.50 to 43/062.50 in Tunnel no. 5 (Portal-1) and ancillary work on the Katra-Dharam Section of the Udhampur-Srinagar-Baramulla New BG Railway Line Project, Jammu & Kashmir by KRCL, having a contract value of Rs 3,226.18 lakh.
• 2021-22: The company entered in Joint Bidding Agreement with M/s Rajinder Infrastructure Private Limited.
• 2021-22: Awarded a Tunnel Project i.e. Construction of Cut and Cover Tunnel Having 520 Mtrs Length Between Km 51+950 to Km 52+500 And 400 Mtrs Length between km 52+550 To Km 52+950 including Minor Bridge on D-S-DBO Road Under Project Himank in Ladakh (Union Territory) On EPC Mode (Net Tunnel Length 920 Mtrs) by BRO, having a contract value of Rs 9,873.40.
• 2022-23: Successfully completed a Tunnel Project i.e. construction of Tunnel T-15, Part Tunnel T-14 including Bridge No. 61 (between km 73.785 to 86.848 km approx) on Katra-Banihal section of Udhampur-Srinagar-Baramulla New BG Railway Line Project (Package T-15) having a contract value of Rs 16,876 lakh.
• 2022-23: Successfully completed a Rood Project i.e. Rehabilitation and up-gradation to 2 lane with paved shoulder from design km 74.350 to km 90.150 (package IV) under 13 TF on Akhnoor - Poonch road (NH- 144A) in the state of Jammu & Kashmir under BRO on EPC mode having a contract value of Rs 6,432.01 lakh.
• 2022-23: The company acquired 99% stake in SP Mangal Murti Enterprises Private Limited.
• 2023-24: Awarded a Landslide treatment work on NH 58 from Kodiyala (km 266.130) to Devprayag (km 296.925) at 10 location under EPC Mode (as per DPR submitted by THDC) under annual plan 2022-23 in the state of Uttarakhand having a contract value of Rs 8198.92 lakh.