MBL Infrastructures gains after bagging highway contract

MBL Infrastructures rose 4.46% to Rs 225 at 9:40 IST on BSE after the company announced that it has secured a highway contract worth Rs 414.75 crore in Madhya Pradesh from the Ministry of Road Transport & Highways.

The announcement was made after market hours on Friday, 18 December 2015.

Meanwhile, the BSE Sensex was down 37.13 points, or 0.15%, to 25,482.09.

High volumes were witnessed on the counter. On BSE, so far 24,349 shares were traded in the counter, compared with an average volume of 6,001 shares in the past one quarter.

The stock hit a high of Rs 232.60 and a low of Rs 222 so far during the day. The stock hit a record high of Rs 329.50 on 12 March 2015. The stock hit a 52-week low of Rs 178.10 on 18 December 2014.

The stock had outperformed the market over the past one month till 18 December 2015, rising 4.46% compared with 0.14% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 11.97% as against Sensex's 2.67% fall.

The small-cap company has an equity capital of Rs 41.45 crore. Face value per share is Rs 10.

MBL Infrastructures said that it secured the order under National Highways Development Project (NHDP)-III programme through engineering, procurement & construction basis. The company said that the execution period of the project is 24 months from the appointed date.

On a consolidated basis, net profit of MBL Infrastructures declined 14.1% to Rs 18.88 crore on 17.3% rise in net sales to Rs 412.56 crore in Q2 September 2015 over Q2 September 2014.

MBL Infrastructures is engaged in execution of civil engineering projects with specialisation in roads & highways. The company posseses a rich experience in road building and maintenance. The company has an integrated business model for engineering, procurement and construction (EPC) and BOT (build-operate-transfer) projects.

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