Dredging Corp: Rebound in earnings holds key

Likely stake sale by govt is positive, but valuations remain expensive

Dredging Corporation of India's stock surged 12.7 per cent to close at Rs 502 following reports that the government may sell 51 per cent of its 73.5 per cent stake in the company. While the company, said to the exchanges, that it has no specific official communication, the street's optimism stems from the possibility of a new owner boosting the company's fortunes. 

The public sector company dredges for Indian seaports and Indian Navy besides undertaking contracts for overseas projects. Dredging involves excavating the sea or river bed to increase their depth for easier ship movements. In the December quarter, the