Gayatri Projects gains in volatile trade

Gayatri Projects rose 2.55% to Rs 58.35 at 15:04 IST on BSE after the company said that the shareholding of its wholly owned subsidiary -- Gayatri Energy Ventures -- in NCC Power Projects may get reduced to below 45%.

The announcement was made during trading hours today, 23 December 2013.

Meanwhile, the S&P BSE Sensex was up 66.29 points or 0.31% at 21,146.01.

On BSE, so far 58,000 shares were traded in the counter as against average daily volume of 10,000 shares in the past one quarter.

The stock was volatile. The stock surged as much as 8.78% at the day's high of Rs 61.90 so far during the day. The stock rose 1.66% at the day's low of Rs 57.85 so far during the day. The stock had hit a 52-week high of Rs 124.80 on 15 January 2013. The stock had hit a 52-week low of Rs 47.50 on 21 August 2013.

The stock had outperformed the market over the past one month till 20 December 2013, advancing 3.64% compared with the Sensex's 2.15% rise. The scrip had, however, underperformed the market in past one quarter, declining 2.07% as against Sensex's 4.03% rise.

The small-cap company has equity capital of Rs 30.23 crore. Face value per share is Rs 10.

Gayatri Projects said that its wholly owned subsidiary -- Gayatri Energy Ventures -- is a major partner in NCC Power Projects, which is building a 1,320 megawatts (MW) coal fired plant in Nellore district in Andhra Pradesh. At present preliminary discussions are taking place between NCC Infra and Sembcorp for the investment in NCC Power Projects, which is subject to a detailed technical, financial, commercial and legal due diligence. The terms of investment including structuring will be finalized after the due diligence process and negotiations are completed between the parties, the company said. As a result of the proposed investment, the stake of the Gayatri Energy Ventures in NCC Power Projects may be reduced to below 45%, Gayatri Projects said.

Gayatri Projects' net profit surged 61.4% to Rs 20.85 crore on 7.1% growth in net sales to Rs 444.93 crore in Q2 September 2013 over Q2 September 2012.

Gayatri Projects undertakes civil construction work such as construction of concrete/masonry dams, earthen dams, national highways, bridges, canals, aqueducts, airports and ports.

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