Valecha Engineering Ltd Stock Analysis

Valecha Engineering (VEL) incorporated in 1957, is promoted by the Valecha brothers as an entrepreneurial concern in Gopaldas Vasudev & Co. The company started with small road projects for the BMC with a subsequent entry into the field of irrigation projects like dams in 1977 and bridges in 1980.

Over the years, the company grew in size and stature with time and was then converted into a public limited company rechristened as Valecha Engineering in the year 1993. The years 1997 and 1998 saw the Valecha Engineering foray into airports, flyovers and foundation piling works.

Today Valecha Engineering is a leading player in the construction industry having a group turnover of Rs 3000 millions.

VEL is engaged in the construction of major infrastructure and engineering projects such as irrigation dams, reservoirs and canals, roads, highways and expressways, bridges and tunnels, railways, airports and foundation and piling works.

The company has also achieved the accreditation of ISO 9001:2000 and positioned itself as a globally accepted construction and infrastructure company.

It has created some of the most prominent civil engineering infrastructure landmarks of India and has positioned itself as a globally accepted construction and infrastructure development company.

The shares of the company are listed on Bombay Stock Exchange and National Stock Exchange. It is one of the firms, which deal regularly with the Government of India projects aided by the World Bank.

The company’s clientele list includes names like Brihanmumbai Municipal Corporation (BMC), Central Public Works Departments, Delhi Metro Rail Transport, Indian Railways Construction, Jawaharlal Nehru Port Trust (JNPT), Konkan Railway Corp, Maharashtra State Road Development Corporation (MSRDC), Maharashtra State Warehousing Corporation (MSWC), Metro Urban Transport Project (MUTP), Mumbai Metropolitan Region Development Authority (MMRDA), National Building Construction Corporation (NBCC), National Highways Authority of India (NHAI), National Thermal Power Corporation (NTPC) and Public Works Departments.

Projects

• Airports and Airstrip resurfacing - Valecha Engineering has undertaken projects for the Dimapur, Mumbai, Chennai and Vadodara Airports
• Piling Works - VEL has some of the best machines in the business and has undertaken piling contracts for various organizations such as DTTDC, NHAI, to name a few. It has recently been awarded the largest piling works contract of India at Kahalgaon by The National Thermal Power Corporation (NTPC).
• Building & Structures - Valecha Engineering has constructed some very fine buildings over the years such as Kamla Raheja College for Architecture at Juhu Vile Parle Scheme for the Upanagar Shikshan Mandal, JVPD, Mumbai. The company has also undertaken construction of a residential project at Wadala in Mumbai, Maharashtra.
• Bridges and Flyovers - VEL has developed an in-house expertise and collected a wealth of experience in carrying out bridge construction, strengthening old bridges and modernizing them including widening of carriageways, etc. Apart from building bridges, building flyovers in metros like Mumbai is also another expertise that Valecha Engineering has developed over the years.
• Tunnels - The company construction tunnels such as Kasheli tunnel for Bombay's Water Supply, the Ghatkopar tunnel system for sewerage disposal, the tailrace tunnel for the Pench Hydroelectric Power Project, tunnels for the Konkan Railway Project and Kanher tunnel at Satara for MKVDC.
• Roads - VEL has been awarded Chittorgarh Bypass concrete road in joint venture with Ashoka Buildcon. The company is presently executing two concrete roads for MMRDA in Mumbai city.
• Dams - Under this the company has undertaken projects such as Irrigation dams, reservoirs & canals - Karanjwan Dam in Upper Godavari Project, Nasik District, Central Spillway of the Upper Wardha Project in Amravati District and Warna Masonry Dam in Sangli District.

Awards/recognition

• Valecha Engineering was ranked one of the top 10 Construction Companies at the Construction World Award 2005.
• It was the first Infrastructure company to go to the North-East to complete a Major NHAI Project in the state of Assam.
• VEL is the largest fleet owner of Hydraulic Rotary Rigs in the country.