Vascon Engineers jumps after land development pact

Vascon Engineers rose 1.93% to Rs 39.65 at 10:03 IST on BSE after the company said it signed a pact with Lina Ashar Foundation to develop Pune land parcel.

The announcement was made after market hours yesterday, 19 February 2018.

Meanwhile, the S&P BSE Sensex was up 141.82 points, or 0.42% to 33,916.48.

On the BSE, 36,000 shares were traded in the counter so far compared with average daily volumes of 5.01 lakh shares in the past one quarter. The stock had hit a high of Rs 40.05 and a low of Rs 39 so far during the day. The stock hit a 52-week high of Rs 58.80 on 15 May 2017. The stock hit a 52-week low of Rs 28.20 on 11 August 2017.

The stock had underperformed the market over the past 30 days till 19 February 2018, falling 13.36% compared with 4.89% fall in the Sensex. The scrip had outperformed the market in past one quarter, rising 5.28% as against Sensex's 0.89% rise. The scrip had underperformed the market in past one year, rising 13.74% as against Sensex's 17.84% rise.

The small-cap company has equity capital of Rs 174.06 crore. Face value per share is Rs 10.

Vascon Engineers said it formally signed an agreement with Lina Ashar Foundation, Mumbai to develop a built-to-suit property at one of the company's land holdings in Pune. Under the agreement, Vascon will construct and deliver a total builtup area of approximately 135,000 square feet (SqFt) on long term lease to Lina Ashar Foundation, the school operator, in phases. The planned Billabong High International School will provide state-of-the-art infrastructure in terms of design and facilities to create a unique learning experience that will be first of its kind in the city.

The parties are not related to promoter/promoter group and the said transaction does not fall within related party transaction, the company said.

Net profit of Vascon Engineers rose 64% to Rs 2.46 crore on 84.80% rise in net sales to Rs 93.51 crore in Q3 December 2017 over Q3 December 2016.

Vascon Engineers is engaged in conceiving, developing, constructing and managing varied projects. It is active in multiple sectors including residential, industrial, IT parks, malls and multiplexes, hospitality and community.

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