Shares of Dilip Buildcon jumped as much as 9% on Thursday after the company said it has been declared as the lowest (L-1) bidder for a new EPC project in Gujarat.
After touching an intraday high of ₹296 a piece on the BSE, at 1:50pm, the scrip was trading at ₹285.55 up nearly 5% from its previous close, while the benchmark Sensex gained 1.6% to 35,979.78 points.
Shares of Dilip Buildcon snapped six-day losing streak. The stock lost 7% in last six trading days from its previous closing high of ₹292.50. From the beginning of the year, the stock lost 30% against a drop of 14% in the benchmark index. The stock has gained 45% from the March lows while the benchmark index, Sensex gained 35%.
The company, through joint venture i.e Dilip Buildcon-HCC (JV), has been declared as L-1 bidder for the tender floated by a civic body in Gujarat. The Engineering, Procurement, Construction (EPC) project is for construction of Bhadbhut Barrage, flood protection embankments and associated works across River Narmada near Bharuch district in Gujarat.
The bid project cost is ₹4167.70 crore, while the contract completion period is 48 months and maintenance period is 10 years.
On a consolidated basis, Dilip Buildcon's net profit jumped 127% to ₹190.98 crore on a 6.1% rise in net sales to ₹2729.66 crore in Q4 March 2020 over Q4 March 2019.
Dilip Buildcon is engaged in the business of infrastructure facilities on engineering procurement and construction (EPC) basis. The firm undertakes contracts from various government and other parties and special purpose vehicles promoted by the company. It operates through construction and engineering contracts segment.