The NRW Holdings Limited (ASX: NWH) share price has been on the rise over the past year amid renewed confidence in the mining sector.
While major miners BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) notched up yearly returns for their shareholders of about 30% and 15% respectively, the NRW Holdings share price has gained about 150% over the same timeframe.
NRW Holdings Limited provides services to Australia's resources and infrastructure sectors through three of its divisions, NRW Civil and Mining, Action Drill and Blast and AES Equipment Solutions.
NRW Civil and Mining has secured a series of potentially lucrative contracts, including the recently announced deal to provide BHP Billiton's South Flank project in Western Australia's Pilbara region with earthworks and concrete worth $176 million.
NRW Civil and Mining has also stated that it's currently bidding for further contracts in the Pilbara region that are expected to be worth a total of around $2.5 billion over four years and include the construction of 300 kilometres of rail track.
Action Drill and Blast is also contributing to the group's recent success with its parent company, NRW Holdings, stating that Action Drill is now the "largest production drilling contractor" on Australia's east coast.
For FY 2017 NRW Holdings reported a net profit after tax of about $28.5 million on revenues totalling around $370 million.
The NRW Holdings share price is trading for about $1.71, around 18x trailing earnings.
Management is predicting more good times ahead for the company with revenue growth tipped to increase by about 40 per cent in FY 2019 to about $1.1 billion, of which the company claims to have secured $950 million.
All that means NRW Holdings' shareholders look like they are set for more healthy returns and for potential investors, the company certainly deserves a closer look.
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