Sadbhav Engineering inches up after securing new order

Sadbhav Engineering rose 0.84% to Rs 89.75 at 11:34 IST on BSE after the company said it has secured an EPC road contract worth Rs 139.50 crore in Odisa.

The company announced the new order during trading hours today, 7 March 2014.

Meanwhile, the S&P BSE Sensex was up 311.93 points or 1.45% at 21,825.80.

On BSE, so far 1.11 lakh shares were traded in the counter as against average daily volume of 30,742 shares in the past one quarter.

The stock was volatile. The stock surged as much as 6.4% at the day's high of Rs 94.70 so far during the day. The stock rose 0.33% at the day's low of Rs 89.30 so far during the day. The stock had hit a 52-week high of Rs 129 on 30 May 2013. The stock had hit a 52-week low of Rs 52 on 16 September 2013.

The stock had outperformed the market over the past one month till 6 March 2014, surging 6.08% compared with the Sensex's 5.92% rise. The scrip had, however, underperformed the market in past one quarter, advancing 1.77% as against Sensex's 2.46% rise.

The small-cap company has equity capital of Rs 15.16 crore. Face value per share is Re 1.

Sadbhav Engineering said it has been awarded an EPC (engineering, procurement and construction) road contract worth Rs 139.50 crore by the Chief Engineer (DPI & Roads), Odisa, Bhubaneshwar. The construction period is 24 months and the defect liability period is 24 months for the project highway and 60 months for any structure & major bridges from the date of provisional certificate of completion, the company said in a statement. The maintenance period for the project highway is for 24 months from the date of the provisional certificate of completion as per Article of Draft EPC Agreement, Sadbhav Engineering said in a statement.

Sadbhav Engineering after market hours on Thursday, 6 March 2014 issued a clarification with regard to a media news that the Company Law Board (CLB) has passed an interim order for conducting forensic audit of the accounts of Bijapur Hungud Tollway, a subsidiary of Sadbhav Engineering and it has also been alleged that not only toll revenue has been shown less by the company but Sadbhav Engineering has siphoned off Rs 200 crore from Bijapur Hungud Tollway.

Sadbhav Engineering said that the above allegations are incorrect, baseless and defamatory. While a minority shareholder of Bijapur Hungund Tollway has made allegations of diversion of funds before the CLB, the High Court of Gujarat has by its order of 21 February 2014 directed the CLB not to proceed further in the matter, Sadbhav Engineering said. The CLB's orders have thus been stayed, Sadbhav Engineering added.

Further and in any event, the CLB has not confirmed any of the above allegations, Sadbhav Engineering said. The CLB had merely permitted the minority shareholder to take inspection of statutory records of Bijapur Hungud Tollway only to the extent permissible under the provisions of the Companies Act, 1956 and install a system so to have online viewing facility of the toll booths and nothing beyond, Sadbhav Engineering said in a statement.

Sadbhav Engineering's net profit galloped 595.4% to Rs 25.94 crore on 75.7% growth in net sales to Rs 620.79 crore in Q3 December 2013 over Q3 December 2012.

Sadbhav Engineering is a construction firm with focus on road, irrigation and mining projects.

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