BSE Industrial index gains over 1%; IRB Infra zooms 17%, hits 52-week high

Other stocks that were buzzing in the trade were Texmaco Rail (up 11 per cent), Capacite Infraprojects (up around 10 per cent), and Adani Enterprises (up over 8 per cent).

Most industrial stocks were trading in the positive territory on Wednesday with the S&P BSE Industrial index advancing over 1 per cent to 2,628.30 levels. In comparison, the benchmark S&P BSE Sensex was quoting at 38,759.64 levels, up 0.6 per cent. 

Among individual stocks, IRB Infrastructure Developers zoomed nearly 17 per cent to hit a 52-week high of Rs 138.80 on the BSE during the day after the company informed it has received unanimous Arbitral award of Rs 73.86 crore for one of its earlier projects in Punjab. At 02:06 PM, the stock was trading 9.5 per cent higher at Rs 130 levels. 

Other stocks that were buzzing in the trade were Texmaco Rail (up 11 per cent), Capacite Infraprojects (up around 10 per cent), Adani Enterprises (up over 8 per cent), Dilip Buildcon (up 8.5 per cent), NCC (up 7.5 per cent), and Uflex up nearly 8 per cent).

For the quarter ended June 2020, Uflex reported over two-fold jump in its consolidated net profit at Rs 196.54 crore. The company had posted a net profit of Rs 90.91 crore during April-June quarter a year ago, UFlex said in a regulatory filing. 

Its total income rose marginally by 0.78 per cent to Rs 1,997.54 crore during the quarter under review as against Rs 1,981.97 crore in the corresponding period of previous fiscal. Uflex's total expenses declined 6.94 per cent to Rs 1,734.87 crore in Q1FY21 as against Rs 1,864.29 crore a year ago.

Dilip Buildcon rallied in the trade after the company announced that its Joint Venture with Hindustan Construction Company (HCC) has received a letter of acceptance (LoA) from Rail Vikas Nigam Limited for a new project worth Rs 1,334.95 crore in Uttarakhand. 

"With execution picking up, some part of the revenues lost during Q1 FY21 would be covered up during H2 FY21. Overall, we expect Dilip Buildcon to end FY21 with marginal revenue decline. The operating margin is likely to move back towards nearly 17 per cent levels in the coming quarters. The effective tax rate is expected to be at 30-32 per cent levels during FY21. We believe the Company is well placed to deliver robust growth in H2 FY21 and FY22 with decent order book in hand and labor availability now back to 90% of normalised levels," said analysts with YES Securities. 

The brokerage has maintained "ADD" rating on the stock with the target price of Rs 391 (based on SOTP valuation).

HDFC Securities, on the other hand, has a "BUY" rating on the stock with the target price of Rs 466/share, given its strong and diversified order book of Rs 261 billion and continued focus on asset recycling. "We have valued EPC business at 8x FY22E EPS and HAM at 1x P/BV," the brokerage notes.