Shares of Welspun Enterprises climbed 6% in opening trade on Monday after the construction engineering company bagged a contract worth ₹1,989.90 crore from the Brihanmumbai Municipal Corporation (BMC). The company has emerged as the L1 bidder for the design and construction of an 8.48 km tertiary treated water conveyance tunnel from the Dharavi WWTF to the Ghatkopar WWTF.
Snapping two sessions losing streak, Welspun Enterprises shares opened higher at ₹588.70, up 5.75% against Friday’s closing price of ₹556.65 on the BSE. In the early trade, the smallcap stock surged as much as 6% to ₹590. In the past two sessions, the counter lost over 4%.
At the time of reporting, Welspun Enterprises shares were at ₹571.40, up 2.65%, with a market capitalisation of ₹7,910 crore. The stock touched its 52-week high of ₹619 on August 26, 2024, climbing 156% from its 52-week low of ₹241 on September 26, 2023. In the last one year, the stock price has nearly doubled, while it rallied over 74% in the calendar year 2024. The counter added 82% in six months, while it corrected nearly 1% in a month.
In an exchange filing on September 27, Welspun Enterprises said, “It has been declared as L1 bidder by the Brihanmumbai Municipal Corporation for a Design and Build Contract for design and construction of Tertiary Treated Water Conveyance Tunnel from Dharavi WWTF to Ghatkopar WWTF.”
As per the release, the contract scope includes design and construction of a 8.48 km tunnel with 3,500 mm bored diameter using a tunnel boring machine. The timeline for the completion of the project is 93 months.
“We will update to you in case of further developments in relation to the above said project,” it added.
As of June 30, 2024, the consolidated order book of the company stood at ₹13,100 crore, while standalone order book was at ₹11,600 crore.
For the April-June quarter of the current fiscal, the company posted consolidated profit after tax (PAT) of ₹110 crore and revenue of ₹907 crore, while EBITDA stood at ₹193 crore.
“We have started FY25 with the highest ever execution for the first quarter of any fiscal. Our stand alone order book of ₹11,600 crore, and our continuing commitment to further augment our order book, gives me immense confidence for our future growth,” said Sandeep Garg, Managing Director of Welspun Enterprises, on Q1 performance.
“Our subsidiary Welspun Michigan Engineers Ltd. has an opening order book of ₹1,500 crore. This makes our consolidated order book a formidable ₹13,100 crore, with ₹2,000 crore of L1 orders,” Garg added.
Established in 1994, Welspun Enterprises, a part of Welspun World, is an infrastructure development company focusing on road, water and wastewater segments. The company also has investments in oil & gas exploration, through Adani Welspun Enterprise Ltd, a joint venture with the Adani Group. It has four oil & gas blocks – three at the discovery/development stage and one block in the exploratory stage.
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