Vascon Engineers hits 5% upper band on securing ₹348 cr order in Guwahati

Vascon Engineers shares hit a 5 per cent upper circuit on BSE, logging an intraday high at ₹35.16 per share. The buying on the counter came after the company bagged an order from the Central Public Works Department, Guwahati. 

At 9:17 AM, Vascon Engineers’ share price was up 4.99 per cent at ₹35.16 per share. In comparison, the BSE Sensex was down 0.58 per cent at 73,553.30. 

“We are pleased to inform that Vascon Engineers Limited has received a Letter of Intent amounting to ₹347.43 crore from the Central Public Works Department, Guwahati,” the filing read.  

Vascon Engineers has received a letter of intent from the Central Public Works Department (CPWD), Guwahati, for the demolition and redevelopment of RBI quarters at Zoo-Narengi Road Colony, Guwahati, Assam, on an engineering, procurement, and construction (EPC) basis. 

 

The order is valued at ₹347.43 crore, inclusive of goods and services tax (GST), and is to be completed within 36 months from the date of receipt of the order. The order has been awarded by a domestic entity and does not constitute a related party transaction.  READ | Eyeing dividend? Check out Adani Enterprises, Tata Steel, 29 others today 

Technical view 

"Vascon Engineers remains in a broader corrective phase after witnessing a sharp decline from its 2024 peak near ₹90. The stock is currently trading within a falling channel and continues to face resistance from the upper trendline, indicating that the primary trend remains weak. Although the stock recently bounced from the lower boundary of the channel near ₹30, it has struggled to sustain above the short-term moving averages, reflecting a lack of strong buying conviction. RSI is hovering around the neutral ₹40–50 zone, suggesting the absence of clear momentum in either direction," said Virat Jagad, sr. technical research analyst , Bonanza.  He added: Immediate support is placed at ₹32–30, and a breach below this zone could extend the decline towards ₹27. On the upside, ₹38 and ₹43 are key resistance levels, coinciding with the 50-day and 200-day moving averages. A decisive breakout above ₹43 and the falling channel resistance would be required to confirm a trend reversal and open the path towards ₹50–55. Until then, the stock is likely to remain range-bound with a cautious to mildly bearish bias.  Disclaimer: The views and investment tips expressed by the analysts/brokerage are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.