| Market Cap | ₹139.6 CrSmall Cap |
|---|---|
| Revenue TTM | ₹245.84 CrOperating Revenue |
| ROE Annual | 21.95%Efficiency Ratio |
| Order from | Hindustan Petroleum Corporation Ltd |
| Execution period | 2 years |
| Deal value | ₹59.02 Cr |
| Share of market cap | 42.3% |
| Share of annual revenue | 24.0% |
Key highlights
- Total contract value stands at ₹59.02 Crore (₹590,246,487.92)
- Order awarded by Hindustan Petroleum Corporation Ltd, a Central PSU
- Scope involves the supply of Bitumen Drum-IS3575 (Q3)
- Contract duration is fixed for 2 years starting immediately
- Procurement facilitated through the Government e-Marketplace (GeM) platform
Order Details & Project Scope
East India Drums & Barrels Manufacturing Limited received this work order through the Government e-Marketplace (GeM), a strategic platform for public sector procurement. The contract, valued at ₹59.02 crore, involves the supply of Bitumen Drum-IS3575 (Q3). These drums are specifically designed to withstand the high temperatures and physical stress associated with bitumen transport.
The execution period is set for 24 months, providing the company with a steady, long-term revenue stream and higher utilization of its manufacturing facilities. This order is considered to be within the ordinary course of the company's business operations.
Client Profile: HPCL
The contract was awarded by Hindustan Petroleum Corporation Ltd (HPCL), a prominent Central Public Sector Undertaking under the Ministry of Petroleum and Natural Gas. As a Maharatna company with extensive oil refining and marketing operations, HPCL's procurement requirements are substantial. Securing a contract from a major state-owned oil marketing company validates East India Drums & Barrels' ability to meet rigorous technical specifications and supply-chain standards.
The relationship with a Central PSU also enhances the company's profile within the domestic industrial packaging market.
Financial Performance & Market Standing
- The new order represents approximately 24% of the company's trailing twelve-month (TTM) revenue of ₹245.84 crore.
- The company maintains a very high promoter holding of 94.68%, indicating strong internal stability.
- Current valuation shows a P/E TTM of 29.33, which is lower than the sector average P/E of 52.94.
- Despite a recent monthly price decline of 19.89%, the company maintains a Piotroski Score of 6, suggesting moderate financial health.
- Annual net profit grew by 29.79% in the last fiscal year, reaching ₹4.67 crore.
Industry Context & Infrastructure Demand
The industrial packaging sector, particularly for petroleum products, is experiencing steady demand driven by India's national infrastructure projects. As the government continues to invest in highway construction and road development through programs like Bharatmala, the demand for bitumen and compatible storage drums remains resilient. Standardized drums like the IS3575 variant are critical for maintaining material integrity during transit.
For manufacturers like East India Drums & Barrels, these multi-year contracts with PSUs offer a buffer against cyclical market fluctuations in the broader plastic and metal products industry.
| Share price | ₹94.49 |
|---|---|
| Market capitalisation | ₹139.60 Cr |
| Revenue (annual) | ₹248.22 Cr |
| Net profit (annual) | ₹4.67 Cr |
| Revenue (latest quarter) | ₹63.44 Cr+6.04% vs previous quarter |
| Net profit (latest quarter) | ₹1.35 Cr+82.44% vs previous quarter |
| P/E (TTM) | 29.33×Sector 52.94× |
| Promoter holding | 94.68%0.00% QoQ |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by East India Drums & Barrels Manufacturing Limited announcing the receipt of a major work order from HPCL. Market figures from a third-party data provider.
