Valecha Engineering jumps after winning order

Valecha Engineering rose 4.08% to Rs 35.75 at 13:50 IST on BSE after the company said it has won a Rs 176.29 crore contract from NHPC for civil work of a tunnel in Himachal Pradesh.

The company made the announcement after market hours on Friday, 22 November 2013.

Meanwhile, the BSE Sensex was up 261.16 points, or 1.29%, to 20,478.55.

On BSE, 11,000 shares were traded in the counter compared with average volume of 17,733 shares in the past one quarter.

The stock hit a high of Rs 36.20 and a low of Rs 35.10 so far during the day. The stock hit a 52-week high of Rs 67.80 on 16 January 2013. The stock hit a 52-week low of Rs 17.60 on 5 August 2013.

The stock had outperformed the market over the past one month till 22 November 2013, rising 6.02% compared with the Sensex's 3.10% fall. The scrip had also outperformed the market in past one quarter, rising 44.63% as against Sensex's 10.40% rise.

The small-cap company has an equity capital of Rs 19.53 crore. Face value per share is Rs 10.

With the award of the project, the tunnelling segment constitutes 10% of the order book of the company, Valecha Engineering said. It said as the company moves ahead it is focusing on getting an appropriate project mix involving leading edge infrastructure technologies. This will achieve a de-risked business model and increase operational growth, the company said.

Valecha Engineering's net profit rose 6.8% to Rs 3.46 crore on 6% rise in net sales to Rs 158.76 crore in Q2 September 2013 over Q2 September 2012.

Valecha Engineering is engaged in the construction of major infrastructure & engineering projects such as roads, highways & expressways, bridges & tunnels, airports, irrigation dams, reservoirs & canals, railways foundation & piling works.

Powered by Capital Market - Live News