MEP Infra gains on bagging LoA from NHAI

MEP Infrastructure Developers rose 1.27% to Rs 40 after the company said it received letter of award from National Highways Authority of India (NHAI).

MEP Infrastructure Developers is engaged for a project of collecting user fee at Chhajarsi fee plaza on Delhi-Meerut Expressway of National Highway (NH)-9 in Uttar Pradesh. The contract is for one year. The operations will commence within 2 days after complying the statutory formalities viz. submission of performance security, signing of contract as per the Letter of Award (LoA).

The contractual amount for the said project is Rs 158.40 crore payable to NHAI on a weekly basis over a period of one year. The announcement was made on Sunday, 24 November 2019.

Shares of MEP Infrastructure Developers jumped 20.84% in four trading sessions to its current trading trading price of Rs 40 from its recent closing low of Rs 33.10 on Tuesday, 19 November 2019.

The stock traded in the range of Rs 39.40 to Rs 40.85 so far during the day.

On the technical front, the stock's RSI (relative strength index) stood at 71.912. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day and 200-day moving average (DMA) placed at Rs 30.79 and Rs 34.73 respectively.

MEP Infrastructure Developers' consolidated net profit fell 8% to Rs 22.12 crore on 5.9% fall in net sales to Rs 541.11 crore in Q2 September 2019 over Q2 September 2018.

MEP Infrastructure Developers operates network of roads, highways, bridges and toll plazas.

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