A layman's View into Likhitha Infrastructure Ltd

A layman's View into Likhitha Infrastructure Ltd

A deep dive into fundamental and business analysis of Likhita Infrastructure Ltd for a layman

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4 min read

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Company Overview

  • Sector - Infrastructure

  • Industry - Construction

  • Website

  • BSE Profile

  • Market Cap - 970 Cr

  • Financial Indicators

  • Compounded Sales Growth

  • Compounded Profit Growth

About

Likhitha Infrastructure Limited was established as 'Likhitha Constructions Private Limited' in August 1998 as a private limited company under the provisions of the Companies Act of 1956. The company's name was changed to 'Likhitha Infrastructure Private Limited' in March 2011 and subsequently converted into a public limited company and renamed 'Likhitha Infrastructure Limited' in February 2019 following a shareholders' resolution at an Extraordinary General Meeting.

Business Insights

Likhitha Infrastructure Limited operates in two main business areas:

  1. Pipeline Infrastructure Projects: The company's pipeline infrastructure business focuses on laying pipelines for Cross-Country Pipeline projects and setting up City Gas Distribution networks. This includes the construction of associated facilities.

  2. Operation & Maintenance (O&M) Services: Likhitha Infrastructure Limited provides O&M Services to CGD Companies. The company's O&M Services business involves managing CGD networks, including repairs, modernization, scheduled shutdowns, and maintenance of existing pipelines. These activities require deploying manpower and tools for tasks such as replacing existing pipelines, emergency repair and maintenance, shifting and compressor hook up of pipelines with associated facilities. The company has a proven track record of extending the majority of its O&M contracts over time.

For over two decades, Likhitha Infrastructure Limited has been providing Oil & Gas pipeline infrastructure services in India, focusing on laying pipeline networks and constructing associated facilities, as well as providing Operations & Maintenance services to City Gas Distribution (CGD) Companies in India. The company has diversified its services over the years, ranging from Cross-Country Pipeline Projects (CCP) and CGD Projects to O&M services for CGD Companies. Its clients include established players in the Oil and Gas Industry, both in the public and private sectors.

Key events and milestones of Likhitha Infrastructure Limited:

  • In 1998, the company was incorporated under the name 'Likhitha Constructions Private Limited'.

  • The company's first City Gas Distribution pipeline project was executed in 2006.

  • In 2011, the name of the company was changed to 'Likhitha Infrastructure Private Limited'.

  • The first Cross Country Pipeline project with associated facilities was executed in 2013.

  • The company's first Operations & Maintenance Services project was completed in 2014.

  • In 2015, the company executed the first Cross Country Pipeline project with a range of 50 Km in a single stretch.

  • In 2017, the company achieved several milestones, including the first Operations & Maintenance Services project above Rs 5000 lakh in value, the first Cross Country Pipeline project above Rs 5000 lakh in value and stretching beyond 125 Kms, and annual revenues from operations crossing Rs 10,000 lakh for the first time in fiscal 2016-17.

  • The first Cross Country Pipeline project above Rs 10000 lakh in value was executed in 2018.

  • In 2019, the company was converted from a private limited company to a public limited company and completed the laying of a 10'x69 Kms pipeline & associated works from Mothihari, Bihar, India, to Amlekhganj, Nepal.

  • In terms of awards, accreditation, and recognition, Likhitha Infrastructure Limited received several accolades, including the outstanding achievement award for construction & design from All India Achievers Foundation in December 2017, the Certificate of compliance from International Certification Services in November 2018, the Certificate of achievements from Engineers India, and the Certificate of appreciation from Nepal Oil Corporation in September 2019.

Please click here to find the financials of the company.

Conclusion

  • Huge Order Book

  • Debt-Free Company

  • Consistent profit and revenue growth

  • Increase in FII stake in past 3 quarters

  • Positive cash flow from operations

  • Consistent growth in reserve and surplus

  • High margin in past 2 quarters

  • Consistent OPM from past 2 years despite high inflation

  • RSI below 45

  • Currently under consolidation

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Disclaimer

Any information or communication provided by me is for educational or informational purposes only and should not be construed as investment advice. It is important to conduct your own research and seek the advice of a professional financial advisor before making any investment decisions. Any investment you make is solely at your own risk, and I am not liable for any losses or damages that may occur as a result of your investment decisions.