Welspun Enterprises hits 52-week high; stock up 15% in two days

The stock rallied 9% to Rs 117 extending its Tuesday's 6% gain on BSE on back of heavy volumes.

Welspun Enterprises hit 52-week high of Rs 117, up 9%, extending its Tuesday’s 6% gain on BSE on the back of heavy volumes.

Till 10:26 am; a combined 1.59 million equity shares exchanged hands against an average sub-one million shares that traded daily in the past two weeks on BSE and NSE.

Since May 30, the stock of construction & engineering company has outperformed the market by gaining 33% after reporting nearly four-fold jump in its standalone net profit at Rs 17.75 crore in March quarter. In comparison, the S&P BSE Sensex was down 1% during the same period.

On consolidated basis, the company posted profit of Rs 18.1 crore in FY17 against a loss of Rs 4 crore in FY16. Total income was up 43% to Rs 415 crore from Rs 291 crore, primarily contributed by progress on the Delhi- Meerut road project.

“As a result of the Company’s consolidation efforts, the credit ratings of the Company have also been upgraded by CARE. The rating has been revised to “A+” from “A” in respect of long-term facilities and to “A1+” (highest possible rating) from “A1” for short-term facilities,” Welspun Enterprises said in a press release, while announcing March quarter results.

The company had completed its share buyback program announced earlier. Around 27 million shares, constituting around 15.5% of the company’s paid-up capital, was bought back at a price of Rs 62 per share, entailing a cash outflow of Rs 167 core.