Valecha Engg in the fast lane on NHAI order

DALAL STREET SPIKES

Valecha Engineering stock too rose on bagging a huge order. The stock hit a new 52-week high of Rs 193 in intra-day trades before closing at Rs 185.90, up 2.77 per cent. Volumes accounted for 2.41 lakh shares on BSE.

Valecha Engineering announced that the company's JV has secured a contract for construction of Chittorgarh bypass in Rajasthan worth Rs 113.6 crore from NHAI.

The project comprises of construction of 4-lane divided carriageway by widening with rigid pavement for new carriageway and strengthening of existing carriageway with flexible pavement, centre median, service roads, open and covered drains footpath etc. along the existing/ realignment portion of the Nation Highway.

"Construction sector stocks are sought after these days on back of strong order-book of most companies and increased activity in infrastructure development initated by the government," said a analyst.

The market had probably got an inkling of the deal in advance as the scrip surged in the run up to the announcement. From Rs 157.25 on May 10, the stock jumped 17.4 per cent to Tuesday's close of Rs 185.90.